Should UA start HI Inter Island Service
#61
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I shouldn't say without issue, as there are many things that go into a ferry flight such as this, but my point is it can be done.
#62
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this is getting off track but...the 717 has a 60,000 flight cycle rating...the 737ng is 75,000...a320 48,000...this is before life extention maintenance.
while casm is higher for short stage length...I can't imagine it is anywhere near $0.45 casm. While HA network average is at $0.112. This could get interesting in the next 2 qtrs wrt fares and hints from other carriers.
while casm is higher for short stage length...I can't imagine it is anywhere near $0.45 casm. While HA network average is at $0.112. This could get interesting in the next 2 qtrs wrt fares and hints from other carriers.
http://i2.cdn.turner.com/cnn/2011/im....emergency.pdf
#63
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That's the rating but when fuselages start opening up mid flight after 30,000 cycles and FAA now requires inspections on the 737 classics after premature cracks on the lap joints then I'm not sure everyone knows everything about actual ratings on high cycle aircraft.
http://i2.cdn.turner.com/cnn/2011/im....emergency.pdf
http://i2.cdn.turner.com/cnn/2011/im....emergency.pdf
#64
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Here are the problems:
1) "Local-ness" of HA. That counts for a lot. How are you going to overcome that? Price? You just killed the incentive for most legacy carriers to enter.
2) Alliances. DL, AA, etc are not going to put their inter-island customers (and don't pretend they don't exist) on a UA inter-island operation if they don't have to, and unless WN changes their model, they won't put 'em on WN. AA, DL, AK, B6, VX don't mind giving them to HA. So, you're down to appealing to local customers and flyers coming/going on other airlines buying separate tickets. Good luck with that model.
3) Schedule. You gonna start up with a schedule that can remotely compete w/ HA? Good luck with that - the cash impairment would be staggering, with zero insurance of climbing out of it with continuing op and financing costs.
The only real competitor HA can have is a well-funded regional jet/turboprop operation not part of a legacy airline that all the airlines will work with. A variety of airlines have tried. And failed.
Tourism from Japan is down BTW - Guam is closer and has become a big draw.
1) "Local-ness" of HA. That counts for a lot. How are you going to overcome that? Price? You just killed the incentive for most legacy carriers to enter.
2) Alliances. DL, AA, etc are not going to put their inter-island customers (and don't pretend they don't exist) on a UA inter-island operation if they don't have to, and unless WN changes their model, they won't put 'em on WN. AA, DL, AK, B6, VX don't mind giving them to HA. So, you're down to appealing to local customers and flyers coming/going on other airlines buying separate tickets. Good luck with that model.
3) Schedule. You gonna start up with a schedule that can remotely compete w/ HA? Good luck with that - the cash impairment would be staggering, with zero insurance of climbing out of it with continuing op and financing costs.
The only real competitor HA can have is a well-funded regional jet/turboprop operation not part of a legacy airline that all the airlines will work with. A variety of airlines have tried. And failed.
Tourism from Japan is down BTW - Guam is closer and has become a big draw.
1. You vastly overestimate the value of HA “local-ness”. UA is as close to being a local airline as any other carrier operating in Hawaii. UA can rightfully claim to be as kama'aina as HA. UA has been flying to its “little corner of the world” for more than 50 years now and UA’s ground staff is as a local as HA’s ground staff. Many local folks are disgusted with what they perceive as HA price gouging by a monopolistic airline including its numerous ancillary charges. At least with UA local people will accumulate miles with their purchase that are far more useful and available for travel on UA extensive route networks and in conjunction with UA’s alliance partners than on HA. Good luck finding the same world-wide seat availability on HA or any of its partners with HA miles.
2. UA has Star Alliance and regional alliances that far surpass anything HA has or ever will.
3. UA’s schedule will never equal the frequency of HA but that is not so a big obstacle since UA won’t compete with HA on schedule. UA leaves HA in the dust with its far-flung network, better res system, and better mileage accrual and redemption program. Try comparing HA’s anemic international and mainland flights next to UA’s.
4. Tourism is down from Japan compared to the halcyon days of the last decades. But China tourism has made up for it and UA’s loads HNL-NRT remain strong. China is not a declining market nor is Korea. The Philippines is also available with the only competition being PAL after HA bailed on this market 2 years ago.
When you say “(t)he only real competitor HA can have is a well-funded regional jet/turboprop operation,” you sound a lot like HA management. No, HA will and should have competition. Not only does it make good economic sense for UA to challenge HA’s monopoly but it is also the right thing to do given the un-American nature of monopolies.
Last edited by WineCountryUA; Nov 14, 2017 at 2:01 pm Reason: merging consecutive posts by same member
#65
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3. UA’s schedule will never equal the frequency of HA but that is not so a big obstacle since UA won’t compete with HA on schedule. UA leaves HA in the dust with its far-flung network, better res system, and better mileage accrual and redemption program. Try comparing HA’s anemic international and mainland flights next to UA’s.
Indeed. There's a reason Narita is no longer a bustling hub for UA & DL. Direct flights are preferred whenever possible by most passengers. And UA has multiple hubs capable of serving multiple island destinations.
#66
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The problems you note are minor compared to the advantages UA brings to the islands:
1. You vastly overestimate the value of HA “local-ness”. UA is as close to being a local airline as any other carrier operating in Hawaii. UA can rightfully claim to be as kama'aina as HA. UA has been flying to its “little corner of the world” for more than 50 years now and UA’s ground staff is as a local as HA’s ground staff. Many local folks are disgusted with what they perceive as HA price gouging by a monopolistic airline including its numerous ancillary charges. At least with UA local people will accumulate miles with their purchase that are far more useful and available for travel on UA extensive route networks and in conjunction with UA’s alliance partners than on HA. Good luck finding the same world-wide seat availability on HA or any of its partners with HA miles.
1. You vastly overestimate the value of HA “local-ness”. UA is as close to being a local airline as any other carrier operating in Hawaii. UA can rightfully claim to be as kama'aina as HA. UA has been flying to its “little corner of the world” for more than 50 years now and UA’s ground staff is as a local as HA’s ground staff. Many local folks are disgusted with what they perceive as HA price gouging by a monopolistic airline including its numerous ancillary charges. At least with UA local people will accumulate miles with their purchase that are far more useful and available for travel on UA extensive route networks and in conjunction with UA’s alliance partners than on HA. Good luck finding the same world-wide seat availability on HA or any of its partners with HA miles.
As I said in an earlier post, I also agree with you that United earned its "local" status years ago with many local employees, family, friends, and local frequent flyers who are proud to share Pan Am/United loyalty to the Islands.
Still, I am not sure that United would be wise to launch a big inter Island service for a host of other reasons.
#67
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Count myself in the camp that I don't see this happening (at least direct by UA). But I have a question for those advocating UA begin this service:
At absolute BEST what could UA create in revenue (not profit) from this operation?
At absolute BEST what could UA create in revenue (not profit) from this operation?
#68
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...The Philippines is also available with the only competition being PAL after HA bailed on this market 2 years ago.
When you say “(t)he only real competitor HA can have is a well-funded regional jet/turboprop operation,” you sound a lot like HA management. No, HA will and should have competition. Not only does it make good economic sense for UA to challenge HA’s monopoly but it is also the right thing to do given the un-American nature of monopolies.
When you say “(t)he only real competitor HA can have is a well-funded regional jet/turboprop operation,” you sound a lot like HA management. No, HA will and should have competition. Not only does it make good economic sense for UA to challenge HA’s monopoly but it is also the right thing to do given the un-American nature of monopolies.
"Not only does it make good economic sense for UA to challenge HA’s monopoly" - prove it. Show us the numbers. If it makes economic sense, why haven't AA, DL, UA, WN, whoever set up shop in the last ten years? Explain to us why they all seem to be throwing a huge money-making opportunity away. Why have all the other airlines closed up if it's such a money-maker? Don't tell us UA can do it because UA can afford to lose more.
United would prefer to put it's long-haul plane where it can generate decent revenue from the front cabin. Transpac/Oceania routes to/from Hawaii are not them.
UA should get in "because it's the right thing to do". Seriously? It's United's job to make sure monopolies don't occur? You lost all credibility there.
"Mr. Munoz, we have to enter the Hawaii inter-island market immediately because HA is operating what we think is an un-American monopoly".
Last edited by IAH-OIL-TRASH; Nov 14, 2017 at 9:58 am
#69
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Here's my armchair airline CEO plan:
United should have sent their 747 fleet to the islands instead of the desert. Offer three times a day "Queen of the Skies" service between the major airports. Cake at the gate, inflight mai-tais for everyone, and water cannon salutes after every flight.
Everyone would choose this over those "tired old" HA 717s. And the "cargo in the belly" would ensure profitability.
United should have sent their 747 fleet to the islands instead of the desert. Offer three times a day "Queen of the Skies" service between the major airports. Cake at the gate, inflight mai-tais for everyone, and water cannon salutes after every flight.
Everyone would choose this over those "tired old" HA 717s. And the "cargo in the belly" would ensure profitability.
#70
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So what i am reading here is that the market can't bear a second carrier (I disagree), but what prevents HA from gouging their current partners or the local market? HA has lobbied against ferry service and it has been proven margins on inter-island are higher than mainland service.
The ferry service ending has nothing to do with HA.
A spinoff airline by a major carrier with the right aircraft (not 737 and not prop) "might" make it work.....
#71
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#72
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It is in Hawaiian's best interest to fill the seats - you "gouge" and people will simply not buy the tickets - it becomes a point where it just isn't worth it.
The ferry service ending has nothing to do with HA.
A spinoff airline by a major carrier with the right aircraft (not 737 and not prop) "might" make it work.....
The ferry service ending has nothing to do with HA.
A spinoff airline by a major carrier with the right aircraft (not 737 and not prop) "might" make it work.....
#73
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With HA's frequency, they pretty much have to price the seats reasonably. It's basic microeconomics.
#74
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Lots of entertainment value in this thread - two teams "The Realists" vs. the "Pipe Dreamers" going at it! While the thread in all likelihood will end up being a draw (I mean, seriously, who changes their mind when being presented with facts? ), reality usually has a nasty way of getting the last word...
#75
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Lots of entertainment value in this thread - two teams "The Realists" vs. the "Pipe Dreamers" going at it! While the thread in all likelihood will end up being a draw (I mean, seriously, who changes their mind when being presented with facts? ), reality usually has a nasty way of getting the last word...