United Airlines officials remain pleasantly astounded that demand for its daily nonstop service between San Francisco and Los Angeles and Lihu’e remained strong even when much of the world developed an instant fear of flying after watching two jets crash
United Airlines officials remain pleasantly astounded that demand for its daily nonstop service between San Francisco and Los Angeles and Lihu’e remained strong even when much of the world developed an instant fear of flying after watching two jets crash into the World Trade Center in New York City.
Sure, each United flight to Kaua’i delivers less than 200 passengers. But at a time when carriers were teetering on the precipice of bankruptcy and going on bended knee before the U.S. Congress for financial relief, laying off employees and cutting back on unprofitable or unpopular routes, demand for those two United nonstops to the garden isle remained nonstop as well.
Folks from Mayor Maryanne Kusaka to Sue Kanoho of the Kaua’i Visitors Bureau and Gary Baldwin of the Hawai’i Tourism Authority have credited the island’s chosen marketing strategy (West Coast, U.S. mainland, newlyweds, golfers, adventurers), its high percentage of timeshare visitor units (over 1,500 of the island’s 7,100 visitor accommodation units, or over 20 percent of the total), its relative lack of dependence on the Japanese traveler (who has been largely staying at home since September 11), the physical beauty of the island and the inner beauty of her people as reasons why Kaua’i survived the shock of events on and after September 11 better than some other destinations in the state, country and world.
It should be pointed out here that, while Kaua’i survived in ways better than expected, Po’ipu remained a hot spot on a hot island, due largely to the specific promotional efforts of the Po’ipu Beach Resort Association.
Especially when unemployment figures are considered (please see the chart), the business story of the year for 2001 is the survival of Kaua’i’s top industry, tourism, in the wake of the events of September 11.
The events didn’t deter Norwegian Cruise Line from bringing its 2,200-passenger Norwegian Star to Hawai’i for seven-day cruises exclusively in the islands until further notice. Subsequent demand for “safe ports” that mix both tropical splendor with American soil have prompted the line to reposition another 2,000-passenger ship here for much of this year.
There were a few casualties, predictably. Canada 3000, which operated popular charter flights between Vancouver and Lihu’e during the winter months, filed for bankruptcy protection. Air Canada is expected to take up much of that slack, though it is unknown at this time whether or not a Vancouver-Lihu’e nonstop is in that carrier’s plans. American Hawai’i Cruises, which operated two cruise ships which weekly called on Nawiliwili, including one that spent the night here, also went out of business.
American Airlines had planned to launch a daily nonstop flight between Lihu’e and the mainland in 2001, and United had planned a third West Coast-Lihu’e nonstop once a week, before the events of September 11th occurred.
The financial realities (losses) of September 11th, and other difficulties, saw the promising purchase and redevelopment of the Coco Palms Resort dashed.
And the fact that many Kauaians lost their jobs or saw hours slashed in the wake of September 11th also cannot be ignored, and was by no means trivial.
But, with the survivor’s spirit that over the years has seen the island rebound from two hurricanes, the impacts of the Gulf War and other setbacks big and small, Kaua’i made it through the final quarter of 2001.
Depending on which economist is speaking, the island and state are in for a rough ride for perhaps the first quarter or half of this year. But Kaua’i’s ability to so far weather the storm that has been the aftermath of September 11th, and continuing promotional efforts ratcheted up a few notches because of the terrorist events, have the island in the state that is geographically the most isolated place on earth looking amazingly solid.
Other newsworthy happenings in 2001 include, in this case related to the year’s top business story on the island, the merging of Hawaiian Airlines and Aloha Airlines.
The impact of the December announcement won’t really be felt until this year, when employees who have been fierce competitors for decades are forced to work side by side, operations are consolidated and people on all the islands lose jobs, and commuters, vacationers and those traveling for business or pleasure who had no option but to jump on a jet to get from one island to another find themselves without even the option of competing carriers.
As fierce as the competition between companies has been is the staunch loyalty flyers of each carrier have developed for their favorites.
Locally, the day the announcement of the merger was made public, Aloha Airlines had its Christmas party for Lihu’e station employees. The mood at Niumalu Beach Park’s pavilion was not celebratory.
Avoid the subject of the merger when in the presence of Hawaiian Airlines employees as well, as it tends to provoke increased volume, blood pressure and feelings in those workers, too.
Many local people in and out of the airline industry have strong suspicions that a rival carrier will emerge, albeit temporarily, to offer interisland travelers at least some option.
Other significant developments in 2001 included Steve Case buying around 18,000 acres of former Amfac Sugar Kaua’i land from the center of the island to the Ninini coastline; the merging of Wilcox Health System (Wilcox Hospital and Kaua’i Medical Clinic) with Kapi’olani Health and Straub Clinic & Hospital; the continuing negotiations between a group of Kaua’i businessmen and Citizens Communications regarding the sale of Kaua’i Electric; the Robinson family acquiring permits necessary to develop a 250-cabin resort near the Waimea River; and continuing reconstruction of the former Waiohai Hotel into Marriott’s Waiohai Beach Club.
Business Editor Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
