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Wednesday, July 24, 2013

Allegiant Air Struggles in Hawaii Market

The low-cost airline, Allegiant Air, has not been doing as well as they had hoped for since expanding their service to Hawaii about a year ago.  President of the Las Vegas-based airline, Andrew Levy, noted that they do not have enough demand from the smaller markets that make up their company's business model.  Levy stated, "There's just not enough bodies there to support year-round service at prices that make sense.  So we're seeking another market or two that we can operate on a year-round basis because there's enough traffic density in the market, and that's what we think L.A. will do for us."

The airline has announced that it will offer nonstop service twice a week from Los Angles to Honolulu starting October 30, 2013.  However, they have also suspend routes from Boise, Idaho; Spokane, Washington; Eugene, Oregon; Pheonix, Arizona; and Fresno, Stockton and Santa Maria, California due to low numbers.  Some of these routes will be reinstated for the holiday season.

Source: Honolulu Star Advertiser, 7-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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