Monday, December 3, 2007

Hawaiian Airlines

Hawaiian Airlines has signed a MOU with Airbus for the purchase of 24 wide bodied jets which are to be delivered from 2012 onwards. The order comprises of 6 A 330-200s + 6 options + 6 Airbus A 350-800s + 6 options. These Airbus aircraft are intended to fully replace HA's fleet of 18 Boeing 767-300ERs.

The first A 332 will be delivered in 2012 where as the first A 358 in 2017. One of the main reasons why HA ordered the A 358 is because the airline is closely examining the possibility of launching nonstop flights to London from HNL. HA also announced that it will be launching new flights to Manila 4 times a week nonstop from March 2008 using a B 763ER.

Analysis :

What HA needs to do is to take advantage of HNL being an excellent strategic hub located between Far East Asia and USA/Canada because via HNL, HA can offer ONE STOP flights from Asia to YVR + key U.S. markets such as SFO, ORD, LAX, NYC, IAD and Texas which see high density travel demand year round from their respective areas to HKG, MNL, Korea, China and Japan.

However, HA must be careful as to choosing which cities in Asia are feasible for their current fleet of B 763ERs to operate as well as future operations with the A 358s and A 332s. Currently, the popular ex Hawaii-Asia routes are mainly MNL and Japan. The other markets that can benefit from HA service are HKG, PVG, ICN and PEK only. These cities have a small amount of O&D to HNL (largely leisure / honeymoon traffic) but a far greater amount of 6th freedom traffic bound for YVR and mainland USA which HA can transport via their HNL hub. Getting rights to PVG & PEK might be a problem for HA due to the flight allocation policy for China by the U.S. DOT.

Keeping that in mind, HKG & ICN are more easier to get flight approvals for. As far as Europe goes, obviously the A 358s would be used for those flights, but apart from LGW, one doesnt see the need for HA to even bother looking at any other city. Frankly speaking, even LGW would be a loss making route for HA. Is there really that much demand for HNL from UK or mainland Europe?

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