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The Honolulu Advertiser
Posted on: Saturday, September 23, 2006

Go! fare slashing sparks war of words

By Rick Daysog
Advertiser Staff Writer

The day after go! airlines said it was slashing one-way interisland fares to $19, Aloha Airlines said it is jettisoning some of its cooperative arrangements with go!.

The state's No. 2 airline said yesterday that it will no longer accept go! tickets when go! flights are canceled or delayed. Aloha also said it will no longer accept go!'s passenger baggage when go!'s planes are overloaded.

Airlines usually honor their competitors' tickets for canceled or delayed flights, and will often carry their excess baggage.

But Aloha said go! is attempting to put Aloha and Hawaiian out of business with "sham" fares.

"There is evidence that go! has a plan to drive out hometown airlines and then raise prices for its own gain," said David Banmiller, Aloha's chief executive officer.

"It is clear that go!'s latest action is a direct attack on the livelihood of Aloha's employees and their families."

Hawaiian joined Aloha in its criticism of go!, saying the $19 fare "won't be the long-term price of interisland air travel."

"If it wasn't clear to everyone before, it should be now that Mesa is trying to eliminate competition in Hawai'i," the company said.

Joe Bock, spokesman for go!, denied the charges, saying the airline has increased competition since its June 9 launch.

"It's quite obvious that our intention is to bring competition and low fares to Hawai'i, not remove it," Bock said.

"Competition is good for Hawai'i and it's something that's been absent in the interisland airline market."

Go!, a unit of Phoenix-based Mesa Air Group, triggered a local fare war when it introduced $39 one-way interisland tickets on its first day of business. Both Hawaiian and Aloha matched the fare.

Since then, Mesa has dropped one-way fares as low as $29 on several occasions, prompting Aloha and Hawaiian to match each time it has announced a discount.

Go!'s latest $19 fare announcement also was matched by Aloha and Hawaiian.

For fliers like Barbara Hastings, go!'s entry into the market has made a big difference in their pocketbook.

The public-relations executive said she flies about once a week from her home in Hilo to Honolulu, mostly on Aloha. Hastings said she has flown on go! twice and saves a minimum of $60 a week as Aloha brought its fares down to compete with the new airline.

However, some consumers aren't convinced that the airlines are offering enough seats at their lowest prices.

Gloria Garner of Makiki said she was unable to book a $19 flight with go! yesterday for a trip to Kaua'i she plans to take next month.

Garner, a longtime Hawaiian customer, said go!'s Web site showed that the times and dates that she wanted to travel were all booked. Garner said she flew to Kaua'i in July, but was only able to get a ticket at $79 each way.

"They're dangling the bait in front of you," Garner said.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.