Interisland airfares are likely to fall with the launch of a new partnership between Mokulele Airlines and Indianapolis-based Republic Airways that will add flights and boost competition in the local airline market.

Starting Nov. 19, Mokulele will begin flying 14 flights a day between Honolulu and Lihu'e, Kaua'i, and Kailua, Kona, using 70-seat Embraer E170 jets operated by Republic.

Mokulele said it plans to expand its interisland passenger service in January with flights to Kahului, Maui, and Hilo, Hawai'i.

Mokulele said it won't offer the $29 and $19 fares that go! offered when it launched its interisland service in June 2006. But the carrier said its fares will be competitive with those offered by go! and Hawaiian Airlines, which doubled their lowest one-way fares to about $69 in the wake of soaring fuel prices and the March 31 shutdown of Aloha Airlines.

"Another three-way shoot-out will likely mean lower fares" for interisland travelers, said local aviation industry historian Peter Forman.

Hawaiian Airlines, the state's largest carrier, issued the following statement: "Over the years Hawai'i has been a very competitive place for airlines. For our part, Hawaiian will continue to focus on providing the best service and value to the traveling public and earning the loyalty of our customers."

Where fares are concerned, Hawaiian will always be competitive, Keoni Wagner, Hawaiian's vice president of public affairs, said later.

Jonathan Ornstein, chief executive officer of go!'s parent Mesa Air Group, said go! will match the fares offered by Mokulele.

"We consider ourselves the low-fare carrier in Hawai'i and we have every intention to remain the low-fare carrier in Hawai'i," Ornstein said.

During a news conference yesterday at Honolulu International Airport, Mokulele and Republic unveiled the details of their new partnership, which was first reported last week by The Honolulu Advertiser.

Bill Boyer, Mokulele's president, said Republic will provide four Embraer E170 jets and will hire pilots and flight crews to fly the aircraft, which will carry the Mokulele paint scheme.

Republic Airways also will provide $150 million in financing, which will include a line of credit and spare engine parts for the new service.

Mokulele, in turn, will be in charge of marketing, price and administrative functions.

Boyer said he believes passenger capacity in the interisland market has dropped significantly since Aloha's shutdown.

While standard one-way fares may be as low as $69, there aren't a lot of seats available at that price, added Boyer. "I (recently) couldn't buy a $189 ticket on first-class with one of the other competitors because they were sold out," said Boyer.

Honolulu Mayor Mufi Hannemann, who attended yesterday's news conference along with state Tourism Liaison Marsha Wienert and state Department of Transportation Deputy Director Brian Sekiguchi, lauded Mokulele's expansion plans.

Mokulele, which means "island hopper" in Hawaiian, has been flying in the Islands since 1998. The Kailua, Kona-based company currently operates Cessna Grand Caravan 208B turboprop aircraft that carry nine passengers.

Founded in 1973, Republic operates 1,200 flights a day and has 4,600 employees. It operates regional service for major carriers such as United, American and Continental airlines.

Boyer said he plans to double Mokulele's current staff from about 200 to 400 in the next several months. He said half of the employees will be former Aloha Airlines workers.

More than 1,900 Aloha employees lost their jobs after the state's second-largest airline shut down its passenger service March 31. Aloha executives have blamed high fuel prices and the fare war initiated by go! for the company's demise.

Nai McCarthy is one of many former Aloha Airlines employees who have signed on with Mokulele.

"I feel like this is Aloha Airlines being resurrected," said McCarthy, who will be Mokulele's director of customer service.

Dubbed the "people's airline" Aloha built its reputation on its service to the customer and Kalena Awa, a 41-year Aloha employee, said she and other former Aloha workers want to transfer that tradition to Mokulele.

"We want to be the people's airline," said Awa, who will work in Mokulele's customer service unit.

Forman, the aviation industry expert and author of the 2005 book, "Wings of Paradise: Hawai'i's Incomparable Airlines," said Mokulele and Republic may be positioning themselves as go!'s replacement should that carrier exit the market.

Mesa has been hard-hit by soaring fuel prices and the potential loss of a $20 million-a-month contract with Delta Air Lines. And earlier this year, Mesa agreed to pay Hawaiian $52.5 million to settle a lawsuit alleging that Mesa misused confidential business information to start go! airline.