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7-Aug-2014 12:59 PM

Hawaiian Airlines: 'foreign carriers are at a price disadvantage in beyond gateway US markets'

Hawaiian Airlines president & CEO Mark Dunkerley, speaking at the CAPA Australia Pacific Aviation Summit 2014, stated (07-Aug-2014) that Asian carriers are facing challenges in offering a competitively-price product beyond the gateway US markets. He said, "With flight available on US connections, foreign carriers are at a price disavdvantage in beyond gateway US markets", adding that it "would appear that the US domestic airlines are making it more difficult for carriers in this case from Asia to gain access to the US domestic business". He explained that previously, when the US carriers were internally-focused through a period of bankruptcy and consolidation, there were significant opportunities for international airlines to access the largest aviation market on "extremely favourable terms, all things being considered". This, however, has now changed. He added, "Asia Pacific carriers may find it hard to access their US partners' doemstic network when both airlines compete for the same trans-Pacific traffic". He continued, "Where alliance partners are also competitors, non-aliged US carriers often provide a better option for domestic connections". This, however, has created opportunities, according to Mr Dunkerley, who noted that there are cheaper fares for Asian operators if they use non-aligned carriers for domestic segment. This prompted Mr Dunkerley to assert that "non aligned carriers have tremendous value". He said there has been "tremendous" interest from international carriers seeking US domestic access, both among airlines in alliances and those not in alliances.

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