With a summer shaping up to see no fewer than six different carriers offering nonstop service to Lihu’e Airport from California, tourism officials on Kaua’i aren’t very concerned at all about the bankruptcy filings of two of them. Hawaiian Airlines
With a summer shaping up to see no fewer than six different carriers offering nonstop service to Lihu’e Airport from California, tourism officials on Kaua’i aren’t very concerned at all about the bankruptcy filings of two of them.
Hawaiian Airlines and United Airlines, both in Chapter 11 bankruptcy for protection from creditors while financial restructuring occurs, continue to fly the profitable transpacific routes, with Hawaiian also flying a full interisland schedule.
Aloha Airlines, which offers interisland service, will launch a nonstop flight from Oakland, Calif. to Lihu’e in June, to run four days a week as long as there is demand.
American Airlines will return for summertime nonstops between California and Lihu’e, and Pleasant Hawaiian Holidays resumes summer charter service today, with flights carrying 216 passengers every Saturday from Los Angeles and San Francisco, on American Trans Air jets.
Though the service operated by the owner of the Kaua’i Coconut Beach Resort is only scheduled to run through late summer, Nalani Brun of the county Office of Economic Development says the Los Angeles demand could keep that flight operating into 2004.
The sixth player in the summertime California-Kaua’i connection is Suntrips, with flights operated by North American Airlines. Beginning Friday, May 23, and running each Friday through the end of August, nonstop flights from Oakland to Lihu’e are scheduled.
While there has been some analyst speculation that United may not emerge from Chapter 11 due to mounting losses, for the short term there is little concern among local visitor-industry leaders about the bankruptcies.
“With the Hawai’i routes doing so well, in particular for United, and the Mainland routes for Hawaiian being one of their strong segments, we’re not concerned at this time, for this year,” said Margy Parker, executive director of the Po’ipu Beach Resort Association.
“If it appears that one of the companies is headed for Chapter 7 (bankruptcy for the purposes of liquidation of assets to pay off creditors), then there would be a much deeper cause for concern,” she added.
“If that was true, most likely a carrier heading for Chapter 7 will be liquidating and selling off their routes and planes, in which case, because United has successful routes into Hawai’i, it’s likely that another carrier would buy up those routes.
“But, for the near term, we’re not concerned,” she said. “If by next year neither Hawaiian nor United appeared to have made any headway on their financial restructuring, yes, then, the visitor industry including folks in Po’ipu will have concerns,” Parker said.
The United restructuring may result in a smaller carrier serving fewer cities, but the carrier would likely continue to operate its popular and profitable Hawai’i routes, she said.
“For us, it’s business as usual,” said Sue Kanoho, executive director of the Kaua’i Visitors Bureau. The good news is that there’s been no interruption in service, “so we’re happy.”
About the chances that United won’t emerge from its current bankruptcy protection, Kanoho said, “We’re hopeful that things are going to work out.”
Staff Writer Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
