Wednesday, March 08, 2006

Paul Casey's Take On Hawaiian Market

Paul Casey, the former Hawaiian CEO, wrote a feature for the Star-Bulletin about the possible negative effects of Mesa's infiltration on the Hawaiian market. We agree that all three inter-island carriers are not likely to survive more than a year or two competing against one another. We believe this type of independent experiment is the first of many for the regionals. They are all worried about how their mainline counterparts are trying to minimize losses of their regional ops by taking advantage of the over-supply of 50 seat RJ capacity that these carriers provide. Consequently, they will seek opportunities such as the inter-island Hawaiian market.

2 Comments:

At 10:02 AM, Anonymous Tucano Bandeiranta said...

I see what Mr. Casey is saying, but we live in a country where capitalism rules. Mr. Ornstein has an obligation to his shareholders and employees to find opoprtunities that will make Mesa grow and remain profitable. If he sees an opportunity in Hawaii, then good for him for wanting to bring more competition.

Hawaiian and Aloha have both been through Ch. 11 and had the chance to lower their costs. They also have pretty much had little to no competition. What's wrong with a little competition? If the existing carriers are so confident in their new business plans, they should welcome the competition.

 
At 3:39 PM, Blogger Emerging Airlines said...

" If the existing carriers are so confident in their new business plans, they should welcome the competition. "

I think you hit the nail on the head. They cannot handle the growth in inter-island competition nor the growth in mainland competition.

 

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