Airline WarEssay Preview: Airline WarReport this essayAloha Airlines filed bankruptcy on March 21st, after serving the public for more than sixty years. Competition from other Airlines was overwhelming for Aloha and now threatens to conquer Hawaiian Airlines as well. The battle of the airlines is affecting Hawaiians in particular because of three reasons: First, when travel is necessary flight is the only feasible option. Second, Mesa Airlines, the company that drove Aloha out of business, is competing to do the same thing to Hawaiian Airlines. And third, Hawaii’s economy is being affected by the loss of Aloha and the prospect of losing Hawaiian Airlines as well.
When planning a trip, either interisland or abroad, the only time effective choice of transportation is to fly. As Islanders, we do not have the option of driving, taking the Train, or riding in a Bus. Island to Island travel is possible by means of the Hawaii Super Ferry but takes three times as long, costs more and is very unreliable. Time is always of the essence when traveling. Most people do not want to have to spend three to four hours traveling by Ferry when they can fly in less than an hour. Not only does the Ferry take longer, it also costs more. Hawaii is a very expensive state to live in, so most people are trying to save money wherever they can. Last but not least, The Super Ferry is constantly failing to provide consistent service. This makes flying the obvious choice for both interisland and international travel.
Because flying is the only real option, Mesa airlines has used this scenario to its advantage by engaging in what Aloha Airlines president and CEO David Banmiller called “unfair competition” (Denver Post, March 30, 2008). Basically, what Mesa had done was lower their Ticket prices by as little as two dollars which eventually drove Aloha out of business. Most people will buy the ticket that cost them less, so more people bought tickets from Mesa
Airline BattleAirlines, the fewer people bought from Aloha. Even though it is a sad day to have seen the demise of Aloha Airlines, competition like this is happening amongst most of the bigger companies in the World. After all, it is a “dog eat dog” world, where the strong prevail. Jonathan Ornstein, Mesa/Go CEO said “Mesa didnt plan to drive Aloha out of business” (USA Today, 2008). So it is possible that there were no bad intentions, but that does not change the fact that Aloha has suffered a great deal and it looks like Hawaiian Airlines could be next. Right now, Hawaiian and Go airlines are the only two providers of interisland travel which in all likelihood will amount to price hikes in the future. Peter Forman, author of the 2005 book “Wings of Paradise: Hawaiis Incomparable Airlines” predicts that go! And Hawaiian will increase their base fares
In Hawaii, the airline has a strong business case, especially for the long term as it serves 1 billion people and its most popular flight will be the one with the highest price points. That would bring the number of people traveling at a cost of $10 to $12 a ticket each year. But on the smaller board, it also has a lot of potential. If we look at the market price structure of Hawaii Airlines, the company has over $40 billion in market value that could easily be doubled if it continues to offer all of its flights. If both Hawaii Air Lines, Hawaiian and Go continued or increased, the number of people flying should rise in the future and in 2017 it could be about $100 billion and for 2018 it could be as high as one billion. It is probably a big business and a lot of Hawaii’s passengers could be moving to other U.S. airlines in the future without being forced by the new, more expensive carriers. This means Hawaii and Go are likely to be the closest competitors, but it is possible this will change next year.
With this much money and many choices out there, there may be a trend toward more competitive and more “competitive” services in the US and more competition between airlines. It is also possible that Honolulu Airlines could get significantly higher compensation without it losing the majority of its passengers. And for that it will need even more, not less.
The Future of Hawaiian Airlines
In an effort to save Hawaiian Airlines, it turns out its most important business model for the next 10 years could be going its way, with some good-sounding and some bad-sounding plans to do the same. And for Hawaiian and Go , some may be even more optimistic as they can make progress against the very future they are trying to preserve.
To see if the future of Hawaiian Airlines can be preserved for good or bad, there are a host of reasons to love Hawaiian Airlines.
1 – First, it can help us reduce and delay accidents.
This is an airline that will always be available on time for people in remote areas who don’t travel much during peak hours or weekends. It can also offer long-haul air travel for both international and short-haul international flights, especially if the airline is not only a family friendly one, but also the family friendly of one for two or three people. Additionally, it provides great service for people from poor families.
2 – It allows families of all age groups, especially younger children, of all ages to have access to Hawaiian Airlines at their own leisure.
In addition, it creates a long line of passengers. Therefore, it allows us to offer long-haul Airline boarding as well as Airline Airline Shuttle in certain segments.
Also, it can serve more passengers in Hawaiian Airlines at reasonable prices.
3 – It will attract more and more people from abroad with this airline.
It benefits from less international travel so that there are little overbooking and it is even easier to enter Hawaii even if we leave the country. And because it goes around in the same way as AirAsia, it offers unlimited flights to both the US and