The severe economic downturn has forced the Hawaii Superferry to delay the launch of its second ship in the islands for about a year.

The new ship was slated to start service to the Big Island in May 2009. The company said it will continue operating its first vessel, the Alakai, as scheduled between Oahu and Maui.

Postponing the introduction of its second ship will defer more than $10 million in start-up costs and help the company maintain a sound financial position, said Tom Fargo, Superferry president and chief executive officer.

“;Given today's economic uncertainties, this decision is both prudent and provides us with additional time to develop this market, while continuing to grow our successful Oahu and Maui service,”; he said.

The company expects its second ship to be delivered in Mobile, Ala., from builder Austal USA in late February and is seeking to lease the new vessel to another ferry operator or the military to generate revenue in the short term.

“;We're talking to folks in the industry now looking for opportunities,”; Fargo said. “;My expectation is that we'll put it out on contract for this period of time.”;

The Superferry hadn't yet secured any Big Island shipping contracts and didn't begin hiring workers for the new route, he said.

Superferry Delays 2nd Ship Service

 

The Hawaii Superferry announced it's postponing service to the Big Island for about one year while it weathers the current economic climate.

 

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The price of fuel, which has declined from a peak of $4.25 in mid-summer to $2.30 today, is cushioning operations, which are solid for the long term, according to Fargo. Meanwhile, the company expects to complete a draft environmental impact statement by January for service to Kauai.

The company said it is committed to continuing operations in Hawaii and is on track to become profitable next May. The Superferry's first ship seats up to 800 passengers and carries about 200 vehicles.

The ship ferried about 400 passengers per trip this summer. During the typically slower month of September, passengers per trip fell slightly to under 250, while October passengers per trip has averaged about 300.

So far, the Superferry hasn't had any cancellations for the winter months, when it will begin seven round trips a week to give the company more time to do maintenance. However, it will ramp up trips during the busy holiday season, though it anticipates prices will remain the same.