Hilo flights to cost more

[macuu222]

Looks like if you want to save money on inter-island airfares...you may want to fly out of Kona instead of Hilo. In fact all three inter-island carriers may pull out of the Hilo airport if something isn't done.


http://www.starbulletin.com/business/200..._more.html

[Rob Tucker]

A rather startling rate of increase from the Hilo terminal to the airlines.

374% is something they can't ignore. I can see why they would raise rates. Sure seems
stupid on the part of the D.O.T. but what's new?

[JerryCarr]

The threat by the airlines to pull out of Hilo is most likely posturing, but an increase in fares is a near certainty if the fee increase stands. Are the DOT apparatchiks who approved this hike Lingle appointees? If they are, whatever happened to that Republican mantra of low fees and taxes? The Gov needs to intervene and/or explain. Something stinks here.

[Bob Orts]

It really doesn't matter who is governor and who is on the board, Hawaii law requires that the passenger terminal operation be self sufficient. This was established so favoritism, nepotism, political influence, lobbying and anything else that the citizens believe corrupts government decision making is removed from the mix. The rates are established based on the cost of the terminal to be paid by passenger departing load levels. At an airport with large passenger volume and small terminal expenses, the rate is low. At an airport with small passenger levels and large terminal expense, the rate is high. Unfortunately, it would be nice to blame government stupidity, but they are following the law as the people have always demanded it. If these airlines want smaller holdroom fees, increase departing flights and passengers and the cost goes down. The airlines advocated and agreed to this. If the airlines have several flights from Hilo to other islands or the mainland using full large passenger jets, the rate would fall. It does not matter how many people arrive at Hilo, only how many are departing.

[Bullwinkle]

"The state Department of Transportation, citing airport activity and revenue and expenditure forecasts, increased the holdroom rate at Hilo to $18.43 a passenger from $3.91. It was the second increase in five months after the rate was adjusted to $3.91 from $2.81 on Feb. 1"

I knew they should not have bought all that nice lounge furniture – grin

Seriously though, Hilo airport has a lot of unused capacity

[macuu222]

So if Hilo has low passenger levels and high terminal expenses...then why are they currently making lounge improvements at the airport? They should be reducing their size instead of expanding it to match small passenger levels. I always wondered why Hilo had jetways and Kona didn't even though Kona has much more passenger traffic and larger planes.

[Rob Tucker]

quote:

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Originally posted by macuu222
I always wondered why Hilo had jetways and Kona didn't even though Kona has much more passenger traffic and larger planes.

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Intriguing question..... I wonder what the answer is?

[EightFingers]

Business falls off so you raise your prices?

Doesn't even make fundamental economic sense.

[Seeb]

on the jetways thing, how about Rain

[Bob Orts]

quote:

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Originally posted by macuu222

So if Hilo has low passenger levels and high terminal expenses...then why are they currently making lounge improvements at the airport? They should be reducing their size instead of expanding it to match small passenger levels. I always wondered why Hilo had jetways and Kona didn't even though Kona has much more passenger traffic and larger planes.

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quote:

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Originally posted by Rob Tucker

Intriguing question..... I wonder what the answer is?

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It’s most likely that the Hilo airport improvements were requested by the airlines and by consumers, including jet ways. It would have been agreed upon by the airlines and airport management. And, most likely approved long before the fiscal crises happen. May have been an item planned while all the airlines were still in business and Hilo was a destination some planned to increase traffic. What you’re seeing is the end of the improvement process. All this was done with the airlines knowledge and agreement.

As for Kona, the Master Plan is being finalized as we speak. All previous plans, the PUBLIC, tourist industry, hospitality industry, and community organizations opposed closing in the airport. It’s one of the few remaining open air airports and just about everyone felt although it needed modernization, modernization should not come at the expense of adding jet ways and closing in the terminal. The uniqueness was a driving force in prior master plans. You can check the status of the various plan items at that airport's website. Hilo on the other hand, was one where everyone (including the public) wanted a more modern and closed in airport.

quote:

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Originally posted by EightFingers

Business falls off so you raise your prices?
Doesn't even make fundamental economic sense.

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Government has no option, it’s the law. If the airlines and passengers who are using the airport are not paying, it comes out of every taxpayer’s pockets.