what's another half-million bucks anyway

[kalakoa]

http://www.hawaiitribune-herald.com/news...on-hurdles

Lawmakers approved $50,000 in May to study a possible inter-island ferry, and the state Department of Transportation received a $500,000 grant from the federal Maritime Administration to hire consultants to explore potential routes and boats.
"The feasibility study might come back and say maybe it's not financially feasible for us to do this," said Ford Fuchigami, director of the state DOT. "But right now, using federal money which is available … we want to be sure that we use that money to see whether or not this is possible."

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"Almost no ferry system in the country is self-sustaining," said Lauren Brand, an associate administrator for the Maritime Administration. "The vast majority of them have to have public dollars to help them keep on."
Washington state's ferry system, which Fuchigami identified as a potential model for Hawaii, gets about 30 percent of its operating costs from subsidies and 70 percent from the fare box, ferry experts said. The Staten Island Ferry in New York, where customers ride for free, also is subsidized by taxpayers.

That $550K would be better spent hiring consultants to study the reason(s) that inter-island airfare is so expensive. Maybe those flights should be subsidized? Airfare vouchers for island residents would be cheaper than a ferry system... no new infrastructure needed, no protests necessary.

[PaulW]

I can save them a lot of money. No, it's not possible at this time, the government lets Luddites determine policy.

[terracore]

"Maybe those flights should be subsidized? "

The flights from Waimea are subsidized: http://www.bizjournals.com/pacific/blog/...deral.html

In response to increased revenues, Hawaiian Airline's stock is up 500% in the last couple of years. If the flights were subsidized, they would just add it to their profits. The real solution is to encourage competition.

This was posted on Island Air's facebook page on Dec 20:

"The next generation of turboprop air travel is coming to Hawai‘i! We're happy to announce we have accepted the first of three Bombardier #Q400 aircraft into our fleet.

These new, highly efficient aircraft consume 30% less fuel while being 30% faster than conventional turboprop aircraft operating today. We will have more information about our new aircraft in the coming weeks as well as when you may begin booking flights on routes serviced by the Q400. "

When I talked to them earlier this year they listed "aircraft acquisition" as one of the things they needed to accomplish before servicing Hilo. They also told me they had no plans for Hilo-Kona service.

[terracore]

The real reason why inter-island competition is doomed to failure is airline miles. If one has 20,000 Hawaiian Airline miles they aren't going to fly on another airline for a fare that's $10 cheaper, and it's difficult for a new airline that nobody trusts is going to be around in two years to attract people to their new airline miles program with no credit card backing to earn miles by shopping.

There is an easy solution of course, Island Air could become a "mileage partner" with another airline. Alaska makes a lot of sense, they just merged with Virgin so they have two airlines in the Hawaiian market already. Plus their credit card is much better than Hawaiian's. And they have decades of experience marketing puddle jumper routes.

[ericlp]

Umm, even if they gave them the green light.... Like they did with TMT, you'd be a fool to invest in Hawaii. As a handful of protesters and a few rocks in the road or suffers in the ocean is all it would take to stomp on all of your dreams. Billions wasted again.........