10-24-2007, 02:37 AM
I understand wanting to have some competition for Hawaiian and Aloha, but I also remember a television interview with the Go CEO when they were just starting where he said that they have "deep pockets" and were going to use them. Initially I thought that they were indicating that Go was able to weather low ridership or other startup problems as any new business must. Then they started and are continuing to maintain this series of cheap fares. According to one analysis I heard on NPR it costs the airlines about $50 a seat for interisland fares (lots of up and down that costs fuel). It seems evident that Go does not really want to compete. Rather it seems obvious now that Go simply wants to drive one of the other airlines, probably Aloha, out of business so it can be in a perfect position to drive prices right back to where they were before or higher. This isn't competition. This is an 800 pound gorilla smashing a little guy until he's dead. Combine that with the lawsuit by Aloha alleging Go is using inside information from its takeover deal in the campaign. Go probably knows to the month how much they have to spend to drive Aloha out of business.