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Tuesday, January 8, 2013

Hawaiian Airlines Expanding Fleet Again


Hawaiian Airlines has announced that they will be acquiring 16 new long-range single-aisle aircraft to help increase the number of nonstop flights between the U.S. mainland and the neighbor islands. According to their press release, the airlines has signed a memorandum of understanding to purchase the 16 Airbus A310neo aircraft and have rights to purchase an additional nine planes if needed. If all 25 planes are purchased, this would equal to approximately $2.8 billion in costs for Hawaiian Airlines. However, the fleet expansion would also generate approximately 1,000 additional jobs for Hawaiian.
President and Chief Executive Officer for Hawaiian Airlines, Mark Dunkerley, stated, “”The A321neo will be the most fuel-efficient aircraft of its type after its introduction in 2016. With its slightly smaller size we’ll be able to open new markets that are not viable for wide-body service, while also being able to augment service on existing routes to the West Coast. “We serve more cities on the West Coast than any other airline, but they’re pretty much all to Honolulu with only a few to Maui. By acquiring single-aisle airplanes, we’ll be able to fly to more cities from the U.S. West Coast to the neighbor islands directly.” Dunkerley explained that each A321neo would service 190 passengers.
Mike Boyd, an aviation consultant, commented, “This is a brilliant move. That’s a tremendous airplane performance-wise and comfort-wise. It’s an airplane in big demand, and, if a year from now they find out the economy has turned down, they won’t have any problem getting rid of them and being stuck with them. I think they’ll be able to use them very effectively. They’re doing the right thing. The historical application of Hawaiian Airlines was to fly in the Hawaiian Islands. Nobody can make money doing that, but opening up those routes in the South Pacific and Asia, it’s brilliant. There’s a lot of discretionary income in Japan and China, and Hawaiian’s in the right spot with the right name at the right time. It’s a very sound strategy.”
Source: Honolulu Star Advertiser, 1-8-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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