Funny, but my memory is that when Mahalo, Discovery and Mid-Pacific airlines tried to compete with you, you cut your prices. Aloha did too. As soon as Mahalo, Discovery and Mid-Pacific quit, the prices went back up again. This technique is called predatory pricing, and was the subject of some of the first anti-trust laws. It is what made Standard Oil, and made the Rockefeller fortune. Hawaiian and Aloha have been well-connected enough politically to avoid prosecution under anti-trust laws, and indeed have been granted exemptions to those laws so that they could openly violate the laws with impunity.
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The Myth of Predatory Pricing
by Thomas J. DiLorenzo
Thomas J. DiLorenzo holds the Scott L. Probasco, Jr., Chair of Free Enterprise at the University of Tennessee at Chattanooga.
...The theory of predatory pricing has always seemed to have a grain of truth to it--at least to noneconomists--but research over the past 35 years has shown that predatory pricing as a strategy for monopolizing an industry is irra- tional, that there has never been a single clear-cut example of a monopoly created by so-called predatory pricing, and that claims of predatory pricing are typically made by com- petitors who are either unwilling or unable to cut their own prices. Thus, legal restrictions on price cutting, in the name of combatting "predation," are inevitably protectionist and anti-consumer, as Harold Demsetz noted.(2)...
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While it is true that neither airline has been profitable recently, you have consistently refused to allow outside auditors to apportion your losses to interisland and mainland business sectors. If you have been losing money interisland, as you have consistently claimed, why not allow independent verification of that?
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Interisland, until very recently and with the help of the newer a/c, hasn't made money. Coupons sales and fare wars between AQ and HA kept the fares from going higher. I cannot give independent verification but I'll say the DC-9 sucked up tons of gas and was maintenance hogs.
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"more in line with today's realities." That is the truest statement in this article. Not "into line with today's realities". Just closer. And guess who is paying for those costs that are not in line with today's realities?
It is true that the employees won't enjoy it. But your customers, who you have been using your monopoly position to gouge, might be OK with the lower prices that result.
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Do you really think that let's look at two flights same day but one in Hawaii and one on the mainland, you tell me who's gouging. I took the cheapest available of BOTH. I used expedia.com
Tue 28-Mar-06
Web Fare
Total price for this trip: $187.16
Honolulu (HNL)
Depart 8:35 am
Terminal Z to Kailua-Kona (KOA)
Arrive 9:18 am 170 mi
(274 km)
Duration: 0hr 43mn
Flight: 120
________________________________________
Economy/Coach Class, Boeing 717
Total distance: 170 mi (274 km) Total duration: 0hr 43mn
Sat 1-Apr-06
Web Fare
Kailua-Kona (KOA)
Depart 6:28 am to Honolulu (HNL)
Arrive 7:08 am
Terminal Z 170 mi
Duration: 0hr 40mn
Flight: 107
Tue 28-Mar-06
Total price for this trip: $327.60
Portland (PDX)
Depart 6:30 am to Seattle (SEA)
Arrive 7:17 am 130 mi
Duration: 0hr 47mn
Flight: 2453
Operated by: Horizon Air
Economy/Coach Class, Canadian Regional Jet 700
Total distance: 130 mi (209 km) Total duration: 0hr 47mn
Sat 1-Apr-06
Seattle (SEA)
Depart 8:30 am to Portland (PDX)
Arrive 9:14 am 130 mi
Duration: 0hr 44mn
Flight: 2331
Operated by: Horizon Air
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This is one of the more disingenuous statements here. First, Mesa will staff its jobs in Hawaii too. Second, despite what is implied here, if Hawaiian or Aloha (or both) fail, the state will not lack for air transport to the mainland.
Most of that philanthropy was during the days of regulation, when you were able to really stick it to your customers. Instead of forcing philanthropy on your customers (while you take credit for it) wouldn't it be better to allow your customers to make their own philanthropic contributions? Make your philanthropic contributions out of your pocket, please, not mine.
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When you say days of regulation? You mean in the 70's. How about this:
http://www.hanahou.com/hawaiianheart.html
Hawaiian Airlines is a perfect example. Now seventy-five years old, the company simply cannot be separated from the people and culture of the Islands. Its 3,200 employees come from every neighborhood and every ethnic background; they drive the company. When calamity strikes, they respond. When economic opportunity arises, they boost it. When it’s time to celebrate, they join the parade. Like good members of the ‘ohana, they care for the whole. How could it be otherwise? They’re Hawaiian!
So, it’s quite significant that the Honolulu Symphony Orchestra nominated Hawaiian Airlines for recognition in last year’s National Philanthropy Day, and that Hawaiian was chosen as the state’s top philanthropic organization. Says Symphony president Steven Bloom, "Hawaiian Airlines has been one of our best and most key sponsors. They are the kind of company that will just do anything for us."
Now, since 1999, the Hawaiian Air flight attendants operate their own nonprofit organization that fundraises and maintains a rescue treasury for those in need. At this writing, the entire company is planning to adopt the Wings of Hope model so that emergency help will be available to all 3,200 employees.
From the get-go, Hawaiian Airlines has been a leading sponsor of the Merrie Monarch Festival, the world’s biggest hula fest, and it is also a leading sponsor of the Celebration of the Arts, a huge and free Hawaiian culture program put on by the Ritz-Carlton Kapalua.
Even in the face and after 9-11, HA supported the local people, how much do you think MESA would do to help the local people and communities?
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Well,
you would have greater control of
our destiny if there is reduced competition.
I would not. How about giving
me control over
your destiny instead of insisting I give you control over mine?
Wasn't it P.T. Barnum who said that nobody ever went broke underestimating the provinciallism of Hawaiians? Looks like Mr. Casey agrees.
The islands' primary industry is tourism, and the biggest factor retarding growth of tourism is the high cost of Hawaii as a destination compared to other similar venues. High interisland airfares are certainly a part of that higher cost structure. Competitive, market interisland airfares will promote growth, jobs, and ultimately wages in the state.
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"Competitive, market interisland airfares will promote growth, jobs, and ultimately wages in the state"
You must be talking about the welfare wages that JO pays his pilots and staff. Pilot's are going to have to have 12 in an apartment just to make a living. forget the family unless to get the wife and kids to work.
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As I have said many times before here, I wish Aloha and Hawaiian well. I hope that they make the changes needed to bring their airlines "into line with today's realities." All the way, not just part way. If they do, they will survive and prosper. If they do not, they will surely fail. Thinking like that of Mr. Casey impedes that process and endangers the future of Hawaiian. He is doing no favors to the airline, its employees or stockholders.
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"into line with today's realities.
Please let me know what your realities are?
I would like to ask any business person on the board, if someone from out of town shows up on your door and and put on the PR crap like JO's ranting and raving, wouldn't you use any legal means to protect your business??
And just for the record, yes, I work for HA and I have many friends over at AQ. I tried to help a few members on this board with problems they discussed here and I think (let me know) it helped. I just think any suggestion that I or anyone at HA or AQ would use this board for some devious purpose is wrong, I would leave that to the likes of JO and his lacky's.
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Oh, by the way, welcome to Flyertalk, HAL717200. Do you, by any chance, work for HAL?