Aloha Airlines Calling It Quits

[mike_s]

what's to keep another airline from coming in and causing a new price war?

 

[MeiLing]

I don't think that there really is anything to keep another airline from coming in and causing another price war. However, it really doesn't make a whole lot of sense. If you are following what the business analysts are saying about the fare wars is that they really don't make a whole lot of sense - more of a testosterone battle than a sound business decision.

In order to do that kind of battle, any airline would have to come in with large enough capital to lose money for a significant amount of time to drive one of the other airlines out of business.

 

[chepar]

It is unfair because they used insider information (as proved when Hawaiian sued them) and created a plan in which they planned to be able to survive (taking a loss) long enough to drive one of the two existing airlines out of business. They were not operating competively - they were taking huge losses because they came in with enough capital and a plan to outlast one of the two.

Yes, they used confidential financial information obtained from Hawaiian and Aloha under the guise of becoming a potential investor in either. Then they analyzed the information and entered the market with the intention of driving out one of the existing airlines. Evidence presented in the Hawaiian trial showed that they tried to scrub incriminating emails and data from the computers of certain Mesa executives.

Supposedly Aloha's suit is almost identical to Hawaiian's. Hawaiian won an $80+ million in their suit against Go! (which is currently under appeal). If Aloha prevails in their suit against Go!, Mesa probably doesn't have the money to keep Go! operating here. Then all you have left is Hawaiian.

Fair competition between the three airlines would have been a good thing. Sleazy and unethical business practices by one of them is not. I think many people who don't care or are glad that Aloha is gone are being rather short sighted and not looking at the bigger picture.

 

[mike_s]

Then all you have left is Hawaiian.

.

which means monopoly fares again...

it's just one big circle. The benefit to the customer/consumer is lost in all of it.

the only ones who profit are the lawyers.

 

[friscuba]

Anyone regretting the State stopping the Hawaiian/Aloha merger a few years back? If I recall correctly, both were struggling and came up with a merger plan that included a guarantee of FREEZING prices for 2-3 years. The State went to court to successfully stop it, both airlines had to come up with extra money to survive, so it was time to kiss goodbye to 62 dollar airfares. Too bad. GO coming in was a temporary boon for inter-island prices, but the cost in the end might be pretty darned high.

If we end up with one healthy airline out of what's going on, another will come in to compete.

 

[fkostyun]

Well, this is being a crazy one for me - as I have two flights that (were) booked on Aloha - that I now need to buy two new tickets for on Hawaiian...... so, that'll mean less diving for me now.

 

[justleesa]

you already paid for your aloha tickets? you're not getting anything back?

 

[Charlie99]

you already paid for your aloha tickets? you're not getting anything back?

Even when people get a full refund from Aloha, they still end up quite a bit out of pocket by the time they buy another ticket on a different airline.

For example, I was speaking with a couple this morning that were sked to fly Maui to Oakland tomorrow. At first, the only return tickets they could get were on United at something like $1000 each.

Then they and Travelocity kept plugging away and eventually they got tickets that were about $400 one way on ATA. They have some weird routing though, where they first fly Maui to Kaui, then Honolulu, then Oakland. Since their original round trips on Aloha were about $200 each way, they are out of pocket about $200 each --- much better than the $800 extra it was going to cost them getting back on United (assuming about $200 back from Travelocity/Aloha/credit card company).

Luckily, my return-to-mainland flight this Thursday is on ATA.

 

[justleesa]

.....

 

[fkostyun]

Yes, since my main flights are on Hawaiian, and the inter-islands are on aloha.

I booked through orbitz - and all they do is say to call hawaiian, and hawaiian says to call orbitz.

Its easier to just pay for some new inter-islands so I can at least get around when I'm there - and hope for a refund in the future from Aloha. I also think the CC I paid with may have travel insurance - so - I may be in luck still!