I agree with most of what you're saying, but we also have to consider this:

HA and AQ received a waiver so they could coordinate their schedules. The net result of that was that they cut there schedules to the bone. (especially Hilo flights, remember?) Since then, some service has been restored.

HA and AQ both dropped the coupon program claiming that they would be able to do better yield management since the coupons encouraged walk-ups and last minute reservations. At the time, coupons were most useful for locals, since it was possible to find cheaper internet fares for visitors who were on a more fixed schedule. When they dropped the coupons, the plan was not to increase price, but that got thrown away too.

HA is back in bankruptcy because Boeing can't or won't renegotiate leases with the current CEO because of the large bonuses he recieved even as the airline was losing money.

So, I really wonder, at what price point will they make money? Like Southwest, the interisland aircraft take a beating from all the takeoff/landing cycles, but why can't they turn it into a profit? Their workers have all taken paycuts. Where is all the money going?

Also, its still possible to find some of the cheaper fares (even though they are higher than they were before all this) but those cheaper fares are going to be early in the morning or late at night and/or require a change of planes in HNL in some cases.

-David


[This message has been edited by LIH Prem (edited 05-23-2003).]