01-05-2010, 07:51 AM
Obie, Mesa Air Group and go! are inter-twined. Right now MAG subsidizes the low fare from their mainland legacy contracts. If you review their financials, there is no separation for MAG. But they are not making any money. By keeping the ventures separate, they can move money from go! to prop up MAG and its mainland service, as some sort of fee payment, but will not be able under bankruptcy to move money from MAG to subsidize go! After all it's a separate venture, not part of the bankruptcy. Since go! is in the red, go! has to either starts making money, sell it off, or be the next bankruptcy filing.
John, yes it would be bad if there is only one airline. But, if it cost a certain amount of money to operate, you can't expect the airlines to continually loose money and remain in service. They are not non-profits and they are not a charity for Hawaii. Hawaiian airline is a business. They emerged from bankruptcy with the understanding that they will price their tickets to at least break even when all is said and done. They can cut prices to compete with go! But that has to be balanced with increase revenue someplace else. What they charge is what it cost. If people won't fly because the fares are too high, let Hawaiian go out of business like any other private company. At that time Hawaii can apply for EAS and the feds will try and find someone to provide limited service and we the tax payers will subsidize your air fares through EAS. Think of it as a bailout for Hawaii air travel.
John, yes it would be bad if there is only one airline. But, if it cost a certain amount of money to operate, you can't expect the airlines to continually loose money and remain in service. They are not non-profits and they are not a charity for Hawaii. Hawaiian airline is a business. They emerged from bankruptcy with the understanding that they will price their tickets to at least break even when all is said and done. They can cut prices to compete with go! But that has to be balanced with increase revenue someplace else. What they charge is what it cost. If people won't fly because the fares are too high, let Hawaiian go out of business like any other private company. At that time Hawaii can apply for EAS and the feds will try and find someone to provide limited service and we the tax payers will subsidize your air fares through EAS. Think of it as a bailout for Hawaii air travel.