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The Honolulu Advertiser
Posted on: Thursday, January 18, 2007

Lana'i, Moloka'i catch airfare break

By Rick Daysog
Advertiser Staff Writer

MATCHING PRICES

Interisland carrier go! announced a new round of $29 fares yesterday, which were immediately matched by Aloha Airlines and Hawaiian Airlines.

The new discounts must be purchased by Jan. 25 and are good for travel through Feb. 28.

Restrictions apply, and the airlines typically don't say how many seats will be sold at the $29 rate.

go!, a unit of Phoenix-based Mesa Air Group, touched off a price war when it opened for business in Hawai'i in June with $39 one-way interisland tickets. The airline also has offered one-way fares for a limited time at $29 and $19. Hawaiian and Aloha matched each of the discounts.

Aloha said a recent study by its consultant, Texas-based Sabre Airline Solutions, concluded that Aloha, Hawaiian and go! are losing money when they sell tickets below $50.

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The interisland fare war is coming to Lana'i and Moloka'i.

Maui-based Pacific Wings Airlines said it will start a new discount carrier, PW Express, on Feb. 1 that will offer every day, $29 one-way fares for flights between Honolulu and Lana'i and Moloka'i.

Until now, Lana'i and Moloka'i travelers have largely missed out on the eight-month, interisland fare war. go!, which triggered the fare war when it opened for business on June 9, does not fly directly to those destinations. Aloha Airlines and Hawaiian, which have matched go!'s low fares, also do not fly those routes.

"The price wars were for the rest of the state but not for Lana'i," said Stan Turqueza, a Lana'i retiree.

"Competition is always good."

Pacific Wings is better known as a niche carrier that flies nine-passenger, propeller driven aircraft for local commuters. The company's new discount carrier will fly the same aircraft, but its fares will be nearly half the $54 low fare offered by Island Air, which also serves the Honolulu to Moloka'i and Lana'i markets.

When asked if Island Air would match the new fares, company spokeswoman Moani Wright-Van Alst had no immediate comment.

Island Air, the state's third largest carrier, stayed out of the interisland fare war until last month when it offered a $12 return fare for passengers who purchase roundtrip tickets.

The move came after Island Air layed off 65 of its 415 employees and blamed go! for destabilizing the interisland fare structure.

Pacific Wings President Greg Kahlstorf said the new $29 fare will apply to all tickets sold by PW Express and not just on select seats.

Kahlstorf said consumers' top complaint about airlines is that they "lure you in with a super-low fare, but only on a few seats some of the time."

He added that the new airline will provide monthly commuter passes and coupon books for frequent fliers. Coupons were once popular for interisland travel, but both Hawaiian and Aloha discontinued them in 2003 when they upgraded their ticket management systems.

"Hawai'i consumers told us they are quickly frustrated with that kind of bait-and-switch, so we offer every seat at the same low price every day. This makes travel planning easier," Kahlstorf said.

"Who cares if you can get a $19 seat going somewhere if the return is $73 or the fare is only good on alternate Tuesdays?"

In a news release, Pacific Wings said the new airline will fly 23 daily nonstop flights, including 14 flights per day between Honolulu and Moloka'i and five daily nonstops between Honolulu and Lana'i.

The company also will fly four daily flights between Kahului and Moloka'i.

PW Express will use the same nine-passenger, Cessna Caravan aircraft that's used by Pacific Wings, the company said.

Founded 33 years ago, Pacific Wings operates about 75 daily flights to 11 cities statewide.

Lana'i resident Turqueza also said he's willing to give the new airline a try.

The $29 fares are less than half the $60 to $90 one-way fares that he's paid in recent years, he said.

"I might fly them on those prices," Turqueza said.

Regan De George said he's looking forward to lower fares.

De George, general manager of Molokai Pizza Cafe, said he used to fly to O'ahu or other Neighbor Islands at least once a month but rising fares forced him to cut back his travels to about one every three months.

De George believes that low fares could boost Moloka'i's visitor industry but they will make it easier for island residents and former residents to hold reunions and other family gatherings.

"It's going to bring more tourists but you'll see more family functions, reunions and baby parties," he said.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.