Fare hikes
worry firmsAs Aloha and Hawaiian
raise interisland ticket prices,
businesses say they may have
to cut back on travel
Higher interisland fares posted by Hawaii's two big island airlines could cut into neighbor island tourism and cause island businesses to reduce interisland trips, travel executives say.
Hawaiian Airlines and Aloha Airlines quietly raised their interisland fares between 12 percent and 17 percent last week.
Hawaiian Dredging Construction Co. has 20 to 25 workers moving interisland every day and a few more who make weekly trips, said company President William Wilson. That travel has already been complicated by the airlines' reduced schedules, he said.
"Obviously, the cost increase is a problem that is significant for us," Wilson said. For instance, jobs that the company bid and contracted for before this year's first fare increase in March are costing more to complete.
"But it is kind of hard to complain when you know (the airlines) are not making money doing what they are doing," Wilson said.
The increase also hits companies selling neighbor island trips.
"It does affect Roberts Overnighters for sure because the prices go up," said Helene "Sam" Shenkus, a spokeswoman for Roberts Hawaii Tours. Roberts has developed a strong business packaging interisland air travel with hotel rooms and rental cars for local residents and tourists.
Summer is the peak travel time and higher fares posted just before summer could hurt, she said.
Shenkus said she believes hotels on the neighbor islands could have a hard time. There is already a problem with getting enough airplane seats, since Hawaiian and Aloha tightened up their schedules.
"Going into Memorial Day weekend, we still have cars available, we have hotels available, but we have no airline seats," Shenkus said.
Keith Vieira of Starwood Hotels said people understand the plight of the airlines and travelers don't think they are being gouged, but cost plays a part in their planning.
"When people plan trips, cost and difficulty are always a factor," said Vieira, vice president and director of Hawaii operations for Starwood Hotels & Resorts Worldwide Inc. With all the new security measures causing long waits, travel is fairly difficult, he said.
"And at an increased cost, there is no question it is going to deter travel. Will it deter it by a significant amount? We can't tell," Vieira said.
Aloha started the latest fare hike May 15 and Hawaiian matched it. Tickets purchased before the end of May for travel starting June 1 went up by $10.50 for each leg of a trip. They now cost $77.50, $85.50 and $95.50 each way, depending on seat availability. If there are plenty of seats they will go for the lower fares to fill the planes but as seats get scarce prices rise.
People buying tickets on or after June 1 will pay a little less, $72, $80 or $90, as the federal security fee gets lifted for the summer. All of those fares, which include applicable fees and taxes, are above the previously posted levels of $67, $75 and $85.
Stu Glauberman, a spokes-man for Aloha Airlines, said there was a time last year when Aloha had a fare higher than the highest in the new schedule.
For 2 1/2 months in mid-2002, Aloha had an unrestricted, walk-on fare of $96.50.
Hawaiian and Aloha say they have been losing money in their interisland service. Aloha said its fare hike was an attempt to come closer to breaking even in its local operations.