In a further roiling of Hawaiçi’s interisland air market, the owners of Mokulele Airlines and go! have agreed to consolidate into a single operation starting Thursday.
Under it, Mokulele will stop operating its jet flights with those passengers being accommodated on go!’s interisland service.

Republic Airways Holdings, the majority owner of Mokulele, and Mesa Air Group, the owner of go!, said they are forming the joint venture to combine jet routes currently flown by their Hawaiçi subsidiaries.
“During these difficult economic times both carriers are looking to consolidate their Hawaii operations by joining forces through a partnership that better matches capacity with demand,” the carriers said in a FAQ posted on Mokulele’s Web site.
“By doing so, we can improve efficiencies in order to ensure the future of low-cost travel for the businesses and people of Hawaii.”
Mokulele has been operating three jets and a smaller commuter service with turbo-prop aircraft. The carrier has struggled to make inroads against go! and Hawaiian Airlines, which dominates the state’s interisland market.
Three E170 jets used by Mokulele will be returned to the Mainland by November and will operate in Republic’s service there. Passengers that had been booked aboard those aircraft will fly on go!’s CRJ-200 jets.
The jet services customers will check-in for flights at the new go! Mokulele-branded ticket counters that previously served go!’s customers.
Mokulele’s smaller Cessna Caravan aircraft will continue to operate, under the Mokulele Express name between Honolulu and Molokaçi, Kahului and Molokaçi and Kona and Kahului.
Mokulele shareholders will own 25 percent of the new venture and fund up to $1.5 million to capitlaize the joint-venture.