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Strike could halt If negotiations fail and United Airlines mechanics carry through with their threat to strike next week, it could shut down the single largest airline flying into Hawaii and throw the travel plans of thousands of island visitors into disarray.
isles’ largest air carrier,
disrupt travel plans
The stoppage would hit
United, mechanics set talks
the visitor industry just as it
is trying to recover from Sept. 11By Alan Vaughn
avaughn@starbulletin.comThe work stoppage would have the dual effect of curtailing isle tourism as it continues to recover after Sept. 11 and hammering United, which analysts have speculated is running close to bankruptcy.
The ramifications for Hawaii "could be quite substantial," said Pearl Imada Iboshi, research administrator for the state Department of Business, Economic Development and Tourism. "United Airlines counts for somewhere around 20 percent of total seats."
United brings about 100,000 passengers a month to the islands, Iboshi said. Overall, the islands received 486,000 arrivals during December, the most recent month for which the department has compiled statistics.
Other carriers could pick up United's passengers, but it would be inconvenient for travelers, even if everyone could be accommodated.
"United is the single largest carrier in the market," said Danny Casey, Hawaii chapter president of the American Society of Travel Agents. "The other carriers would pick up some of the additional passengers but you can't take the major carrier out of a market and expect the others to pick up the difference."
Casey said that while he is taking calls from concerned travelers, there is not a whole lot he can do for those with tickets on United. Usually what happens during a strike is other airlines try to accommodate the displaced fliers by accepting their tickets and the affected airline allows ticket refunds and flight changes without penalties. But there are no guarantees, and United has only said it is optimistic a contract will be ironed out in time.
Casey is telling those planning to travel on United near the end of March or later to go ahead and make reservations. For those traveling between the earliest possible strike date -- Wednesday -- and mid-March, Casey's advice is to look at other airlines.
And for those who already have tickets on United for Wednesday or soon after? "Unfortunately, there are not a lot of options," Casey said.
Even if United's mechanics strike, few expect it to last long.
"The state could not really endure a long strike," Casey said. "And, frankly, I don't really think United could endure a long strike, financially."
United is losing $10 million a day, analysts say, and last year lost an industry-record $2.1 billion.
After-effects for Hawaii would likely be limited, Iboshi said.
"Something like this tends to be relatively short-lived. Once it's over, it's over," she said. "It doesn't tend to be long-lasting like a terrorist attack."
Iboshi also expects other carriers could pick up United's passengers. Hawaii lost few mainland routes after Sept. 11, she said, and other airlines have planes that are not in service.
"I would think that carriers would be more able to add flights," Iboshi said.
Overall, 65 percent of available airline seats on major national carriers were filled with paying passengers last month, about 1 percentage point more than a year earlier. Other carriers come close to United's size in the Hawaii market, and both Aloha and Hawaiian have mainland flights.
But the bottom line for Hawaii's tourism-dependent economy is that fewer visitors would be arriving.
"Visitors simply would not be able to get here and obviously they would not be staying at hotels, eating at restaurants," said Murray Towill, president of the Hawaii Hotel Association. "I think everybody's hopeful that they will get back to the bargaining table and get this worked out."
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CHICAGO >> Facing the threat of a crippling strike within a week, United Airlines scheduled urgent new talks with its mechanics' union yesterday after its contract offer was resoundingly rejected. United, mechanics set talks
By Dave Carpenter
Associated PressOfficials at the world's second-biggest airline agreed to meet with union negotiators in Chicago starting tomorrow, just 4 1/2 days before the mechanics can legally strike at 12:01 a.m. Wednesday.
Both the airline and industry analysts played down the likelihood of a walkout, which would be the first at Elk Grove Village-based United since pilots struck for 29 days in 1985. United was scrambling to improve its offer to forestall a strike it can ill afford on the heels of a record $2.1 billion annual loss.
"The company just can't take a prolonged strike," said ABN Amro analyst Ray Neidl, suggesting United parent UAL Corp. may be forced to make substantial concessions. "It would put them into bankruptcy."
Union leaders expressed a willingness to meet around the clock if necessary to avoid a strike at the airline, which is 55 percent employee-owned. They said the previous offer -- crafted by an emergency board appointed by President Bush -- should serve as "a basis for settlement."
An imposed settlement is possible through congressional intervention if Bush requests it. But United was not counting on that scenario because Congress goes on a lengthy recess after today's session.