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The Honolulu Advertiser
Posted on: Sunday, November 15, 2009

Recession can help us plan for the future


By Jeanne Mariani-Belding

Hawaii news photo - The Honolulu Advertiser

Mark Dunkerley
President and CEO of Hawaiian Airlines

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COMING WEDNESDAY

Editorial and Opinion Editor Jeanne Mariani-Belding puts Linda Smith, the governor's senior policy adviser, on the Hot Seat — and lets you ask the questions — during a live online chat from noon to 1 p.m. Wednesday. Join the conversation online.

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Don: What's your take on when the tourism industry will pick up?

Mark Dunkerley: I think recovery will be slow, but we are starting from a position that is in relatively better shape than many sectors of the economy. The key to the future success of tourism in Hawai'i lies in using this recession as an opportunity to plan for the long term.

Kevin: As a member of the Business Roundtable, what do you think will be necessary to help Hawai'i get out of this economic downturn?

Mark Dunkerley: Just like anywhere else, growth in the private sector will lead Hawai'i out of this economic downturn. What's going to be important is whether or not Hawai'i businesses can stay competitive with their Mainland and overseas counterparts.

While no one knows when consumer confidence and spending will return, it's important that businesses use this time to become more efficient. The quicker and the better Hawai'i companies can do this, the sooner the effects of the recession will abate.

Cathy: Why is it taking so long to settle the dispute with Hawaiian Air's pilot union?

Mark Dunkerley: The main issue separating Hawaiian from ALPA is productivity. Today, Hawaiian's pilots make industry-average pay and benefits, and under the company's proposals, they would move near the top of the industry scales. At the same time, however, because of a legacy union contract, pilot productivity at Hawaiian ranks dead last against the carriers with which we compete.

What we are proposing are changes to contract work rules, which would move productivity at Hawaiian some of the way towards the industry average.

Michael S.: Where is the future in our tourism industry? I understand the growth areas are in Asian countries, but do you see it as a sustainable industry in the future?

Mark Dunkerley: I absolutely see tourism as a sustainable industry for Hawai'i, both in terms of its economic and environmental impact. Of course, making it so requires diligence and this, again, is why I focus so heavily on the importance of long-term planning. It should be clear from the Hawai'i tourism experience over the last 40 years, that it's impossible to accurately predict from where Hawai'i's visitors will come in the next 40 years.

That said, it is more likely than not that Asia will grow as a source of Hawai'i visitors and it is more likely than not that we will need to provide them with a visitor experience that can adapt to what they desire.

Les: Is Hawaiian Airlines planning on developing new routes to Asia, especially China?

Mark Dunkerley: Yes, we would like to serve China in the future. But first, there are three barriers that must be overcome. First, we must acquire aircraft capable of nonstop flights to China, and we are taking a big step in this direction with the introduction of the Airbus A330 at Hawaiian in the spring of next year.

Second, the ability of Chinese visitors to secure a visa to visit Hawai'i must be made as easy and as affordable as possible. And third, the agreement between the U.S. and China, which limits the number of airlines that can fly routes between the countries, needs to be amended to allow us to fly these routes.

Ginger: We hear a lot about recent visits to Japan to attract new visitors, but what is being done to recapture the Mainland market?

Mark Dunkerley: A trem-endous amount is being done across all facets of the tour-ism industry in Hawai'i to promote visits from Main-land-based tourists. I'll mention just one, which is the ma-rket "blitzes" organized and sponsored by HVCB (Hawai'i Visitors and Convention Bureau), to which Hawaiian and other Hawai'i businesses are contributing heavily.

Luis Delgado: You always give credit to your employees, and I think that's really commendable and it certainly shows in the consistently excellent service your employees give. But this comes from good leadership. I'd like to ask you what you think the most important requirements are for being a good leader.

Mark Dunkerley: I don't think there's any magic bullet, but I do think there are some pretty basic elements, which I think help tremendously. The first is recognizing the capability of employees and encouraging them to rise to every occasion and task. It's what people naturally want to do and get the most satisfaction from doing. At the same time, it's really important to balance your focus on the short-term crisis of the day with a view to the future. No matter how fast your reaction time may be, if you don't know where you're going, you'll still drive off the road.

Marshall: Hawai'i has had some bad publicity lately, which has gone national. What is being done to put a positive spin on this?

Mark Dunkerley: First, as someone who travels a lot, I would caution that we're probably harder on ourselves in terms of publicity than those who see us from afar. The reality is that while Hawai'i grapples with the effects of this recession, we are relatively better off than most of the other communities of our nation. They, too, are struggling with the same issues that afflict us and they, too, are making decisions which, in many instances, are more painful than those confronting us in Hawai'i.

Nanakuli Bill: Major airlines are filling up smaller aircraft as a means to cut costs. What is Hawaiian doing to increase profitability?

Mark Dunkerley: Every airline is looking for ways to become more efficient, and Hawaiian is no exception. We are investing in new technology like more fuel-efficient and environmentally friendly aircraft (you may have seen that we have begun installing blended winglets on our 767s), and IT systems, which help us streamline our processes. You can't survive in this business without a constant vigilance on costs.

Jron: What specific improvements do you think we need to make in order to attract tourists?

Mark Dunkerley: We have to invest in our tourism infrastructure, both public (roads, parks, etc.) and private (aircraft, hotels, attractions, etc.) to keep pace with the investments being made by other destinations competing for Hawai'i's visitors. This is a long-term need, which the current economic downturn should in no way stall.

Pearl Kai: How much of an impact do you think the state of our airport plays on a tourist's perception of Hawai'i? I've traveled around to different parts of the country and while we are not the worst airport, we aren't the best either. What are your thoughts?

Mark Dunkerley: There's no question that the airport experience anywhere in the world leaves a lasting impression of that place. Hawai'i is no exception. Today, our airport infrastructure is not adequate to meet the needs either of airlines or the tourism industry. There are many, many reasons for why we are where we are — most of which date back decades — and it is completely unedifying to look backwards. I am delighted to say that the state is moving forward on the Airport Modernization Program, which will be funded by the airport's users and which Hawaiian Airlines firmly supports. We are fortunate also to have the support of our state Legislature and the business community in this.