Hawaiian Air wins state,
Maui travel contract

By Russ Lynch
Star-Bulletin

Hawaiian Airlines Inc. has won a contract estimated at $3 million to provide interisland travel for employees of the state government and the County of Maui who travel on government business.

Offering to sell the travel coupons at $31 for each of an estimated nearly 100,000 trips, Hawaiian beat Aloha Airlines Inc., which has had the state contract for two years, and Panda Travel Inc., which also offered to sell airline coupons.

Hawaiian's price could rise if it experiences cost increases beyond its control. Aloha had won the contract in 1996 with a bid of $32.94 per coupon but did experience cost increases and the price now is almost $36, officials said.

"By awarding to the lowest bid price, the state expects to save early $200,000 in travel expenses in fiscal 1998-99," said Gov. Ben Cayetano.

The contract cover all interisland travel on state and Maui county business, except trips by employees of the University of Hawaii and the legislative and judicial branches.

"The state has become one of our most important clients," said John Happ, Hawaiian's senior vice president for marketing and sales. It brings new business to Hawaiian because the contract had been held by the airline's main interisland competitor, Happ said.