Rivals cut
interisland fares

Tickets include Hawaiian's
$69 Web rate, a 22 percent
drop, which Aloha matches

Bankruptcy apparently is no deterrent to an interisland fare war.

Hawaiian Airlines, approaching its two-year anniversary in Chapter 11 reorganization, launched an attack on rival Aloha Airlines yesterday when the state's oldest carrier cut its Web rates by 22 percent and began offering $69 one-way tickets today as part of a three-tier fare structure.

Aloha Airlines, which filed for bankruptcy Dec. 30, quickly matched the reductions yesterday and said its rate cuts would take effect as early as today, or as soon as it can make the necessary adjustments.

The one-way coach rates offered by Hawaiian range from the SuperSaver at $69 to the Saver at $89 and the Anytime at $109. Seats are based on availability. All fees and taxes are included.

"We cut our interisland fares to make it easier for kamaaina to fly on the nation's best airline," Hawaiian Airlines trustee Joshua Gotbaum said. "Now you can get Hawaii's best airline at Hawaii's best price."

Aloha, though, quickly countered.

Thom Nulty, senior vice president of marketing and sales for Aloha, said, "We will not be undersold."

"I have to applaud them for their creativity to simplify the fare structure," Nulty added. "What Hawaiian has done is very creative, and it simplifies the fare structure and drives people to the Web site. So the more people that go there, the lower our operating cost is, and it gives us the ability to lower our fares and hopefully make reasonable profits."

Hawaiian said there is no time limit on the new fares, but cautioned that the airline can change them at any time.

"With no travel date restrictions, this is a great opportunity to plan ahead, book now and save a lot," Gotbaum said.

Hawaiian said online reservations, which are nonrefundable, must be paid for within 48 hours of booking. The airline said it will assess a $15 fee for flight changes, and other restrictions may apply. Tickets purchased through Hawaiian's reservations department will be charged at the higher published fares.

Nulty said that Aloha will be competitive and match any fees or restrictions instituted by Hawaiian.