Mesa plans to 'Go' the distance
Pacific Business News (Honolulu) - March 27, 2006
by Howard Dicus
The head of the Mainland company launching an interisland airline called "Go" says he's here to stay but the introductory fares aren't.
Jonathan Ornstein, CEO of
Mesa Air Group, says the $39 one-way fares he chose for the opening of service in June -- fares which
Hawaiian Airlines and
Aloha Airlines are matching -- are designed to entice people to try the service. Eventually, fares will be higher.
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But Ornstein did raise the possibility that the fares will last longer than the summer period, through Sept. 30, which have so far been announced.
"When you plug fares into the computer," he explained, "you have to put some kind of stop date. But what we're really planning is to keep the fares until we've gotten a sufficient number of people to try the product."
Sources at Aloha Airlines have told Pacific Business News that Ornstein has got to be selling seats at a loss because his jets seat only 50 passengers, less than half as many as they do.
Ornstein did not dispute that but said his cost structure was favorably affected by fact that he got the four regional jets with which he will launch the service on favorable terms. Part of the cost of flying anywhere is the cost of payments on the planes that execute the service, he said.
Hawaiian Airlines CEO Mark Dunkerley said he thought Ornstein's foray into Hawaii was probably driven in part by a desire not to create ill will with the Mainland carriers
United Airlines,
Delta Air Lines and
US Airways, for which Mesa Air Group acts as a subcontractor flying regional feeder service. In Hawaii, Dunkerley said, Ornstein would be competing with carriers none of which uses Mesa as a vendor.
Ornstein confirmed that was indeed a factor but did not rule out using the "Go" name on the Mainland later on.
Hawaiian's Dunkerley and Aloha Airlines Vice President for Marketing Thom Nulty each said their carriers are in the interisland business permanently no matter what "Go" does.
"Go" launches June 9 with two regional jets. One will be based in Kahului and will fly to Honolulu, then alternate round trips to Kona and Kahului for the rest of the day. The second plane will be based at Lihue and will fly to Honolulu, then alternate round trips to Kahului and Lihue for the rest of the day.
On June 20, two more jets will join the service. One will be based at Kona, flying to Honolulu and then alternating round trips to Lihue and Kona for the rest of the day. The other will be based at Hilo, flying to Honolulu and then alternating round trips to Kahului and Hilo for the rest of the day.
In all four cases the first departure will be in the 6 a.m. hour and the last arrival will be in the 9 p.m. hour.