Price war in Hawaii

Three major inter-island airlines sparked a price war this week, as passengers scrambled for new $9 one-way fares.

Both Hawaiian and Aloha airlines matched the superbly low price initially offered by go!, and the majority of the fares sold out as early as Tuesday.

Jonathan Ornstein, Chairman and Chief Executive of Mesa Air Group, the parent company of go!, said that adding a competitive edge to the marketplace was great for customers and allowed more people to experience the beauty of the islands.

Speaking to the AP, he said that the $9 fares were an attempt to persuade Hawaiians to try a new carrier: "We're trying to pry people away from loyalty programs. To really break into the marketplace, sometimes you have to do outlandish things."

Hawaiian Airlines and Aloha Airlines both declined to comment on the price war, but have tried to sue Mesa Air Group on the grounds that its drive for low fares - which started with $39 fares in June 2006 - was intended to drive Hawaiian and Aloha out of business.

© Adfero Ltd

Comments

[William N Walker]

A great idea by two fine airlines that do a terrific job. Go for it! S. W. Walker