The part that I guess I will never understand is that Hawaiian and Aloha are claiming that the Southwest model doesn't work, but the long haul model ala AA and UA, work just fine for them, even though they do it at bargain prices. Sorry, I still don't buy it. If you can't make money flying a full 737 or 717 interisland, then you don't belong in business. Let somebody else do it.
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Hawaiian spokesman Keoni Wagner said short-leg flights — interisland trips of about 50 to 200 miles — cost the airline far more per mile than long-leg flights like a West Coast jaunt of about 2,400 to 2,800 miles — because "they are very different operations."
Aloha Airlines, which recently hired an executive to analyze pricing, would not answer questions about ticket prices.
Citing competitive reasons, Hawaiian would not reveal the cost-per-mile difference among its flights. But Wagner said there are certain fixed costs, whatever the length of the flight, that constitute a larger percentage of the price on interisland trips.
The highest cost, for crew labor, is dictated in part by Federal Aviation Administration safety regulations. Also, equipment and fuel costs and landing fees are spread among fewer passengers than on a Mainland flight.
The airlines also are trying to make up for years of economic trouble. Hawaiian, while it continues normal operations, filed for Chapter 11 bankruptcy protection in March, reporting losses of $58.2 million in 2002. Privately held Aloha reported it lost $23.5 million last year, according to the Bureau of Transportation Statistics.
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ok, I have no doubt that the airlines cost per mile is much higher, because of the higher amount of fuel needed for takeoff, landing, ground ops, etc, but still .. like I said above, if you can't make any money flying full planes interisland then stop complaining about it and get out of the business. Somebody else that can do a better job of it will take over or not, that's what free markets are all about.
[This message has been edited by LIH Prem (edited 06-29-2003).]