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The Honolulu Advertiser
Posted on: Friday, July 31, 2009

Hainan Air sets sights on Hawaii


By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

State tourism liaison Marsha Wienert said she is "thrilled" about Hainan Airlines' announcement that it wants to begin nonstop scheduled service between Beijing and Honolulu this fall. "The importance of this is paramount," Wienert said.

Bloomberg News Service

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China's Hainan Airlines has applied to begin the first nonstop scheduled service from China to Hawai'i — a move that could significantly boost the long-anticipated increase in visitors from there.

With Hawai'i tourism in the midst of more than a yearlong slump, officials are looking to the China market as a much-needed new market.

Hainan Airlines, China's largest non-state-owned airline, has applied to the U.S. Department of Transportation and state Department of Transportation to operate service between Beijing and Honolulu.

"We are excited to be able to finally bridge Hawai'i to China and to link the two capital cities of Beijing and Honolulu," said Joel Chusid, general manager for North America for Hainan Airlines. He noted the company's headquarters are in Hainan Island, considered the "Hawai'i of China."

Chusid sees potential for more growth: "We also expect that some of our travelers will use Hawai'i as an alternative gateway for travel between China and the United States Mainland, which can provide convenience and reduced travel time. Visits to Hawai'i's Neighbor Islands are also anticipated."

The airline is planning one flight a week beginning this fall, with a specific start date yet to be announced. Chusid said Hainan plans to eventually increase the frequency of the Beijing-Honolulu service to three flights a week as demand builds.

The new service is primarily targeted at Chinese tourists, a growing market even in the current economic downturn. In the early 1990s, Hawai'i welcomed about 10,000 visitors a year from China. That jumped to almost 30,000 by 1998 and closed in on 60,000 last year, according to state statistics.

Hawai'i has long been a popular destination for visitors from Asia, and a new memorandum of understanding between the United States and China has eased restrictions on leisure travel for Chinese nationals coming to the United States.

Hawai'i Tourism Authority Vice President David Uchiyama said Chinese tourists have the distinction of spending more per person per day on international travel than visitors from most other countries, which is good news for Hawai'i's ailing tourism industry.

Hainan will use an Airbus A340-600 on the new route with 288 seats in three classes.

Hainan Airlines currently operates nonstop between Beijing and Seattle four times a week, a service that began in June 2008.

Billionaire George Soros has invested $50 million in HNA Group, which includes Hainan Airlines. Soros, chairman of Soros Fund Management, said last month he has confidence in China's economy and believes it is recovering quickly from the global economic downturn.

State tourism liaison Marsha Wienert said she is "thrilled" by the announcement that direct service may begin later this year.

"We've been working with Hainan Airlines for almost a year now," Wienert said. "The importance of this is paramount."

She said the formal process allows time for public comment when other airlines could oppose the move, but she said she sees no negatives in approving the direct flights.

Uchiyama said the direct flights offer the potential for the creation of Hawai'i-China travel packages where visitors would stay an average five or six nights, which is twice as long as a typical trip by visitors from the China market.

Since the opening of its first international route in 2001, Hainan has steadily expanded its route network, opening new markets between China and abroad for the first time. Following the opening of several new routes to Europe and Russia, Hainan Airlines most recently added Beijing-Moscow and Beijing-Dubai-Luanda (Angola) a few weeks ago.

Founded in 1993, Hainan Airlines carries more than 14 million passengers annually and flies to more than 60 domestic and international cities, including the capitals of every Chinese province. Hainan Airlines' international flight destinations include Budapest, Hungary; Brussels; and St. Petersburg, Russia. It recently added services to Berlin; Taipei, Taiwan; Luanda; Moscow; Dubai, United Arab Emirates; and Seattle.