Southwest Airlines boosts inter-island Hawaii flights

Published on : Friday, May 4, 2018

Southwest AirlinesThe shares of Hawaiian Airlines fell after Southwest Airlines announced its plans to offer services from California and fly between the Hawaiian islands.



Southwest last fall said it planned to start serving Hawaii this year. On Thursday it said it plans to fly from Oakland, San Diego, Sacramento and San Jose, California, pending regulatory approvals for it to fly long distances over the Pacific.



The Hawaiian Holdings shares lost 6.5 percent to close at $38.25 after Southwest’s announcement. Southwest shares ended little changed.



Hawaiian Airlines CEO Peter Ingram said that they are not afraid of competition.



The presence of Southwest Airlines tends to stir fears about lower airfares. In what’s been dubbed the “Southwest Effect,” in markets where the airline has nonstop service its fares are $45 lower than in cities without those routes, a University of Virginia study found.



Last week, Southwest announced it would serve four airports in Hawaii — Honolulu, Lihue Airport, Kona International Airport and Kahului Airport — and on Thursday said it could also offer flights between the islands.



The Inter-island flying is a market that has little competition. They think that it is very highly priced, Southwest President Tom Nealon said that the airline plans to offer low fares for all the passengers.



A round-trip ticket from Honolulu to Kona in mid-May on Hawaiian Airlines starts at about $185.



Southwest isn’t the only airline adding service to Hawaii. American Airlines on Wednesday said it plans to offer winter flights from Chicago to Honolulu.



The tourism to Hawaii is booming. The state took in a record 9.4 million visitors last year, up from 8.9 million in 2016.



Southwest Airlines is grappling with a decline in bookings following a midair engine failure on one of its flights last month. A passenger was partially sucked out of a blown-out window after a fan blade broke loose from one of the Boeing 737-700’s engines. The passenger died, marking Southwest’s first accident-related passenger fatality in its 47 years of flying.



Related Posts

Tags: , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

arrow2Follow TTW
facebook-logo  twitter-logo  LinkedIn_logo  rss_logo 
ttw_blogger_logo  ttw_blogger_logo


  • 05 EMITT 2021
  • 13 IITM 2022
  • 15 SATTE 2022
  • 16 Conventa 2022
  • 16 SAHIC 2022



      January 16 - January 22
    2. FITUR

      January 19 - January 23

      January 19 - January 20
    4. MATKA 2021

      January 20 - January 23
    5. TTF Chennai

      January 21 - January 23