We have a new entrant into the interisland air market, Mokulele Airlines. Some people are already saying that we don't need more competition in Hawaii. Well, every market, small or big, needs competition. Competition is good for the consumer.

However, I have mixed feelings about this new entry. The part of me that believes in competition and consumer choices hopes for Mokulele Air to succeed and prosper. But the other part of me believes that the odds are against one of the weaker competitors and, as a result, one of them could fail. Which one, I don't know.

When I started Discovery Air, back in the '90s, the interisland scenario was completely different. Honolulu was the hub for major transpacific airlines and the departure point for interisland air travel. Now most major carriers are flying directly to the other islands from their originating points. As a result, the interisland connecting traffic has diminished considerably.

  Of course, back then Discovery did not anticipate the power of politics and, although we were given the wings to fly, the sky was abruptly pulled away from us. Competition in the air played no part in it.

Today is a different ballgame. We have four competitors jostling for a piece of what is left of an air market that has shrunk considerably. At the top we have Hawaiian Air, the dominant carrier with huge capacity and frequency advantages. That gives it the ability to match any low fares that the new entrants or existing competitors will come up with and still leave it enough seats to sell at a higher price. Its costs are spread among a bigger fleet, the revenue stream is not solely dependent on interisland traffic and it offers a variety of services and amenities that the smaller competitors cannot offer.

  At the other end we have Island Air, a small airline operating turboprop aircraft. Because its operating costs are much lower that the jet operators, if it keeps its niche and flies below the competition's radar, it should be able to get by.

In today's environment the consumers are making their choices with their wallets. For a 20-minute sector, on-board service and food count for absolutely zip. Price, together with frequency and punctuality, is the absolute deciding factor. Frequent Flyer programs are also a plus.

These are the realities of today's interisland air market. You draw your own conclusions.