Hawaiian Airlines and Delta Air Lines signed (09-Sep-2010) anew codesharing agreement that will offer Delta's customers access to connecting services within the Hawaiian Islands for the first time. From 15-Sep-2010, passenger will be able to connect between Delta flights and 70 daily inter-island flights operated by Hawaiian Airlines on a single ticket, with Hawaiian to connect Delta customers between Honolulu and Kahului, Lihue, Kona and Hilo, as well as between Kona and Kahului. Hawaiian and Delta's new codesharing agreement expands on an earlier frequent flier agreement between the two carriers. [more]
Hawaiian and Delta sign codeshare agreement
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Hawaiian Airlines: favourable revenue trends, but aircraft delivery delays add cost pressure
Hawaiian Airlines is maintaining a positive outlook for 2017, despite cost pressure and delays in delivery of the first Airbus A321neo aircraft to join the company’s fleet. The airline is a huge proponent of the new generation narrowbody, touting the jet as the only aircraft that serves its mission of serving secondary North American markets at the right cost point. Because of the delays Hawaiian faces the undesirable situation of incurring the costs of adding the A321s to its fleet without enjoying any revenue benefit from their operation.
The delays may intensify the cost pressure Hawaiian already faces in 2017, and its current guidance does not include any effects from a potential collective bargaining agreement it could reach with its pilots. Hawaiian is not alone in facing cost pressure in 2017; nearly every US airline is bracing for non fuel unit cost challenges alongside rising oil prices.
But the unit revenue momentum Hawaiian enjoyed throughout most of 2016 is continuing into early 2017 as industry capacity to Hawaii remains rational, and its own growth is largely driven by new long haul routes introduced in late 2016. But it will be tough for Hawaiian, and the industry in general, to sustain a revenue performance that offsets the cost pressure that most US airlines, Hawaiian included, face in 2017.
Virgin America acquisition gives Alaska the arsenal to up the stakes against United in SFO
One of the main drivers in Alaska’s pursuit of, and eventual acquisition of, Virgin America was strategically to bolster its position on the US west coast. Alaska is now leveraging its newly strengthened position in San Francisco to broaden its combined reach from the city with Virgin America, adding 12 new destinations from the airport by YE2017.
Alaska is upping competition with San Francisco’s largest airline, United, through its expansion at the airport, breaking United’s monopoly in many of its new planned routes. The growth shows that combined, Alaska and Virgin America are in a much stronger position to challenge United than Virgin America on a stand alone basis.
The new routes offered by Alaska are a mix of small and medium sized markets utilising Alaska’s growing fleet of Embraer 175s and Virgin America’s Airbus A320 family aircraft. Alaska’s new route profile from the airport illustrates the combined airline’s ability to offer more network breadth from San Francisco – through a more diverse fleet that should generate a larger pool of revenue for the company.