Island Air and go! Airline's parent company, Mesa Air Group, are working out details to form a partnership that will combine the second and third largest interisland airlines together. While this may not mean too much of a threat for Hawaiian Airlines, which has approximately 85 percent of the interisland market share, it would mean that the combined Island Air/go! company would have about 12 percent of the market share. Currently Island Air operates four 64-seat ART 72 turboprop aircraft and offers 210 flights per week. Go! has five 50-seat CRJ 200 jets and provides about 280 flights a week. While a consolidation would mean that some routes may be combined, it may also mean increased service or an expansion to other routes.
Island Air's CEO, Paul Casey, stated last month, "We are committed to building a strong regional airline, and part of that process is exploring all options, including discussions with Mesa Air." Casey has no additional comment regarding any update of those discussions. President and CEO of Mesa, Jonathan Ornstein, also remained vague about any ongoing discussion and stated recently, "There are often good reasons why airlines merge or combine operations. Some people may recall that we had hoped to do a transaction with Aloha (Airlines) when we first entered the market. Given all the potential benefits, a deal with Island Air is certainly something we would take a careful look at."
Source: Honolulu Star Advertiser, 7-14-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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