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So, comparing apples and oranges. The Hawaii airline market is way different potato than texas. The lowest fuel price and the super competitive market for passengers in the midwest drives price.
The inital fares will be low to start, than bean counters wil bring the prices closer to HA or they will cut a sweeet deal between them. Prices will be about the same. A semi monopoly will continue. Similar to what happens when ocean freight companies compete in HI, we lose every time. My bussiness used to pay about 22% from the gross for all freight. One of the reasons small bussinesses have a hard time in HI. just my take on it
Happy new year!!!
HPP
HPP
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Not so, remember when Aloha was around? Price war! $29 to Honolulu! Unfortunately, Aloha couldn't keep up. Now it's $100 to Honolulu, if you're lucky.
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The inital fares will be low to start, then... Prices will be about the same.
Except...
Southwest is a national brand, with an extensive network of routes that allows them to average costs across their entire operation, and supplement expenses on some routes, if they choose. Their passenger base has an expectation of low fares wherever they fly, and that will play into Southwest’s pricing scheme.
Examples of other corporations with mainland pricing in Hawaii despite added shipping costs; Target, Home Depot, Wal-mart, Long’s-CVS.
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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Aloha and Hawaiian were able to stay in business and compete against each other. Then Go! entered the market and there weren't enough dollars to keep three airlines going during an economic downturn and peak fuel prices. Prior to Go!, Aloha had that "metal fatigue" incident where the top of the airplane peeled off and the flight attendant got sucked out and their safety reputation took a big hit.
Of course the market is different now, with ecommerce keeping cargo holds full and supplying additional revenue streams. Oil prices have been down, currently about $120/barrel off their peak going on the better part of a decade. If I recall correctly Southwest had bought fuel on the futures markets as a hedge against high oil prices and never paid peak fuel prices.
Boeing builds them tough. The top half of the plane was ripped off, but the airframe remained intact otherwise.
This is why budget airlines are such a good idea.
We prefer Jet Blue for all our travel needs. I don't know if they service HI, though. You can pick seats with extra legroom and it's assigned seating, not cattle call.
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2 things that haven't been discussed by Southwest or the press.
1.Their maintenance technicians have been without a contract for 6 1/2
years.They could have some say in the process.
2.The ongoing investigation by the Inspector General in the United States Department of Transportation of the Federal Aviation Administration’s (FAA) oversight of the safety and maintenance culture at Southwest. The investigation has been going on for months.
Sources familiar with the investigation say the Inspector General (IG) is being more thorough than many expected would be the case. The IG is said to be talking extensively to — and seeking data from — a number of parties involved with all facets of Southwest’s maintenance operations, including third-party vendors who have done a large amount of outsourced maintenance work on Southwest’s fleet of Boeing 737s in recent years.
Though there is no rule that forbids the FAA from granting Southwest permission to fly to Hawaii while an investigation is ongoing, many observers think the FAA would be hesitant to grant that approval without knowing the results of the investigation. Or how damaging to Southwest and/or the FAA the findings might prove.
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We prefer Jet Blue for all our travel needs. I don't know if they service HI, though.
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How could you not know that, if you say you prefer them and you live here? Or are you just another wannabe?
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Though there is no rule that forbids the FAA from granting Southwest permission to fly to Hawaii while an investigation is ongoing, many observers think the FAA would be hesitant to grant that approval without knowing the results of the investigation. Or how damaging to Southwest and/or the FAA the findings might prove.
All things considered I would imagine it's just a matter of which party their CEO belongs to.
