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7JetSet7 Code: HWI
Status: Operational
Country: USA
Employees 4951
Web: hawaiianairlines.com
Email: akimseu@hawaiianair.com
Telephone: +1 (808) 835-3700
Fax: +1 (808) 838-5353

Click below for data links:
HWI-1934-04 SIKORSKY S-43
HWI-2005 9 MTHS
HWI-2009-12 3Q STATS
HWI-2012-06 - TO NY JFK
HWI-2013-01 - UPDATE
HWI-2015-03 - 717 SEAT RETROFIT.jpg
HWI-2015-07 - 85th Anniversary.jpg
HWI-2015-09 - TOP 10 2015.jpg
HWI-2015-12 - Global Reach A.jpg
HWI-2015-12 - Global Reach B.jpg
HWI-2015-12 - Global Reach C.jpg
HWI-2015-12 - Global Reach-D.jpg
HWI-2015-12 - Global Reach-E.jpg
HWI-2017-05 - New Livery on A330.jpg
HWI-2017-10 HWI JAL Partnership.jpg
HWI-2018-01 New A321neo Hawaiian Routes.jpg
HWI-ROUTE MAP - 2013-08
HWI-Visit Hawaii - 2015-05.jpg
HWI-Visit Maui 2017-10.jpg



PO BOX 30008

USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.

APRIL 1934: SEE PHOTO - - "HWI-1934-04 - SIKORSKY S-43.



NOVEMBER 1995: 3RD QUARTER 1995 = +$4.82 MILLION (+$184.81 MILLION) (NET PROFIT).



JANUARY 1996: 4TH QUARTER = -$0.124 MILLION )-$3.37 MILLION). 1995 = -$4.1 MILLION (-$163.24 MILLION): +24.8% (RPM) TRAFFIC, +16.9% (ASM) CAPACITY, 76.9% LF LOAD FACTOR (+4.8) 4.93 MILLION PASSENGERS (PAX).







1996 = +6.8% (RPM) TRAFFIC; +9.1% (ASM) (CAPACITY); 75.3% LF LOAD FACTOR (-1.6), 5.16 MILLION PASSENGERS (PAX).

FEBRUARY 1997: 10TH DC-10-10 (CF6-6K) (46710).

APRIL 1997: 2,136 EMPLOYEES.




JULY 1997: 1996 = -$1.53 MILLION (-$5.51 MILLION) (NET LOSS).




9 MONTHS = +10.7% (RPM) TRAFFIC, +8% (ASM) CAPACITY, 77.8% LF LOAD FACTOR (+1.9), 3.99 MILLION PASSENGERS (PAX) (+1.5%).


JANUARY 1998: 4TH QUARTER = -$1.3 MILLION. 1997 = -$1 MILLION (-$1.5 MILLION): 4.162 BILLION (RPM) TRAFFIC (+8.3%), +6.6% (ASM) CAPACITY, 76.5% LF LOAD FACTOR (+1.2), 5.218 MILLION PASSENGERS (PAX) (+1.1%), +9% (FTM) FREIGHT TRAFFIC. USA MARKET SHARE 1997 = 12TH 0.69% (RPM), 1ST LF!







1ST 6 MONTHS = 2.10 BILLION (RPM) TRAFFIC (-0.5%), +1.3% (ASM) CAPACITY, 75.1% LF LOAD FACTOR (-1.4), 2.58 MILLION PASSENGERS (PAX) (-1.8%). 2ND QUARTER = +$2.9 MILLION (+$1.2 MILLION).










FEBRUARY 1999: 4TH Q = +$231K (-$1.3M HELPED BY LOWER FUEL COSTS AND MORATORIUM ON LANDING FEES. 1998 = +$8.2 MILLION (-$1 MILLION): 4.34 BILLION RPM (+4.2%); +4.3% ASM; 76.5% LF (=); 5.26 MILLION PAX (+.8%).






PURCHASED 2 DC-10-30 (46712, 3) (CF6-50C2) OFF LEASE.

MAY 1999: 2,343 EMPLOYEES.

DC-9-51 (47714, N650HA), EX-MERIDIANA (ALS).



SEPTEMBER 1999: 13/7 ORDERS (2001-02) 717-200 FOR $430 MILLION.

OCTOBER 1999: DC-10-10 (163-46943) RETURNED TO AMERICAN AIRLINES (AAL), TO FEDEX (FED). DC-10-10 (46996, N129AA), (AAL) LEASED.






MARCH 2000: 4TH QUARTER = -$34.2 MILLION (+$231,000): +3.1% (RPM) TRAFFIC; MAINTENANCE COSTS = $32.49 MILLION (18.58% (DIRECT OPERATING COSTS (DOC). 1999 = -$29.3 MILLION (+$8.2 MILLION): 4.88 BILLION (RPM) (+12.5%), +11.4% (ASM), 77.2% LF (+.7), 5.71 MILLION (PAX) (+8.5%).

SWAPS DC-10-10 (46943) TO RECEIVE (47830) FROM (AAL).




1 DC-10-10 (27827, N132AA), EX-AMERICAN AIRLINES AAL. DC-10-10 (46519) RETURNED TO (AAL), SOLD TO FEDEX (FED).


1999 = -$29.27 MILLION (+$8.2 MILLION): 7.85 BILLION (RPK) (+12.5%); 77.2% LF; 95.74 MILLION (FTK) FREIGHT (+14%); 5.71 MILLION (PAX) (+8.55); 3,091 EMPLOYEES (+14.6%).






JANUARY 2001: 2000 = -$18.6 MILLION (-$29.3 MILLION): 5.66 BILLION (RPM) (+15.9%), +14.6% (ASM), 78.1% LF (+.9), 6.27 MILLION (PAX) (+9.8%).



1ST 717-22A DELIVERY. 1 DC-10-10 (CF6-6K) (47828, N133AA) DELIVERY. PLANS TO REPLACE 15 DC-10'S WITH 767'S (ETOPS).

MARCH 2001: 1 717-22A (55118, N476HA) DELIVERY.

APRIL 2001: 3,050 EMPLOYEES.


3RD 717-22A DELIVERY. 3 ORDERS (2001-10) 767-300ER (PW4000), AWAS (AWW) LEASED. 2 DC-10-30'S (47850; 47851) RETURNED TO CONTINENTAL AIRLINES (CAL).

MAY 2001: 2,744 EMPLOYEES.

1 717-22A (55123, N478HA) DELIVERY.

JUNE 2001: LETTER OF INTENT (LOI) 4 ORDERS (2002-04) 767-300ER, (ILF) LEASED. 2 717-22A'S (5069, N479HA; 5070, N480HA) DELIVERIES.

JULY 2001: IN 2001-02, SEATTLE - KAHULI, MAUI (767-300ER, 2/DAY).

7TH 717-22A (5073, N481HA) DELIVERY. $1.14 BILLION 9 ORDERS (2002-07) 767-300ER (PW4060), TO REPLACE DC-10 FLEET. DC-9-51 (47662) WITHDRAWN FROM USE (WFU) AT MOJAVE.



717-22A (55127, N482HA "'AKOHEKOHE") DELIVERY. 2 DC-9-51'S (47742; 47784) WFU AT MOJAVE.




DC-9-51 (47658) WFU. 2 717-22A (55128, N483HA "'AKIAPOLA'AU" 55129, N484HA "'OMA'O") DELIVERIES. 767-33AER (28140, N580HA), AWAS (AWW) LEASED.



DC-9-51 (47715; 47735) WFU AT MOJAVE. 717-22A (55130, N485HA) AND 1 767-33AER (28141, N581HA) DELIVERIES.


TO SAN DIEGO (767-300ER).

5 DC-9-51'S (47661; 47689; 47714; 47726; 47796) WFU AT MOJAVE. 717-22A (N486HA) DELIVERY. 2ND 767-300ER DELIVERY (28139, N582HA).




13TH 717-22A AND 3RD 767-33AER DELIVERIES. DC-9-51 (47763) WFU AT MOJAVE. DC-10-30 (47851) WFU AT LOS ANGELES (LAX).


APRIL 2002: IN 2002-10, TO PHOENIX (767-300ER, DAILY NONSTOP).


4 767-3G5ER'S (PW4062) (24257; 24258; 24259; 25531), EX-(LTU), (ILF) 84 MONTH LEASED.



DC-9-51 (48122) PARTED OUT.

July 2002: 2001 = +$5.07 Million (-$18.62 Million): 8.44 Billion (RPK) (-2.3%); 79.8% LF; 5.83 Million (PAX) (-7.1%); 71.44 Million (FTK) (-9.1%); 3,100 employees (-9.8%).

San Francisco (SFO) & Los Angeles (LAX) to Maui.

767-3G5ER (24259, N586HA), ex-(LTU), (ILF) leased.

August 2002: In 2002-10, code share with America West (AMW), to Phoenix.

2nd Quarter = -$31.1 Million (+$1.9 Million). Lost -$10 Million in charter revenue due to bankruptcy of Renaissance Cruises as a direct result of 9/11. -$7 Million in fuel expenses, reflecting significant operating efficiencies of new 717-200 & 767-300ER airplanes. -$4.7 Million from increase in wages & benefits and -$7.4 Million from higher insurance costs and one-time legal & consulting fees associated with abandoned merger transaction with Aloha (ALO).

8 DC-9-51's (47654; 47658; 47661; 47662; 47689; 47726; 47735; 47764) sold to Aeroturbine (AUB).

September 2002: 767-33AER (33421, N587HA), Ansett Worldwide (AWW) leased.

October 2002: Aloha (ALO) & Hawaiian Airlines (HWI) have received a 1-year, antitrust immunity, which allows each, to jointly set the capacity level to be offered on inter-island flights. A drop in tourism and increased flights from the neighbor islands to the mainland, have reduced demand for inter-island travel. Each carrier must provide half of the available seat miles (ASM)'s in total, and one carrier must compensate the other, if it captures more than half of the revenue passenger miles (RPK)'s.

Officially decommissioned its last DC-9-51 (47654, N699HA 38 95). Turned airplane over to the University of Hawaii, and Honolulu Community College's (HCC) Pacific Aerospace Training Center (PATC).

In next several months, will reduce its workforce by -150 employees (-4%) of its present total of 3,538 employees.

9th 767-3CBER (33466, N588HA) delivery. DC-10-10 (46708, N153AA) returned to American Airlines (AAL).

November 2002: In 2003-01, to Las Vegas (3/week), to Ontario - Las Vegas (4/week), 2003-02, Kahului - Portland (3/week), & 2003-05, Kahului to San Diego (4/week).

3rd Quarter = +$6.4 Million (+$11.3 Million) (net profit).

Mark Dunkerley, President & COO, ex-COO, Sabena (SAB).

767-33A (33422, N589HA "Moli"), delivery.

December 2002: 767-3CBER (33467, N590HA "Koa'e'ula"), BCC Equipment leased.

January 2003: 767-3CBER (33468, N592HA) & 767-33AER (33423, N591HA "ake Keke"), deliveries.

February 2003: Retired its last DC-10 airplane.

March 2003: Files for Chapter 11 bankruptcy protection.

2002 = -$58.3 Million (+$5.1 Million).

767-33AER (33424, N593HA "Nene") delivery. 2 DC-10-30's (46712; 46713) returned to AGES.

April 2003: 3,508 employees.

Parent organization/shareholders: Hawaiian Holdings (100%).

Kahului - Hilo.

May 2003: Reached agreement with Ansett Worldwide (AWW) to restructure leases of 7 767-300ER's.

July 2003: DC-9-51 (47763) donated to Pacific Aerospace Training Center.

August 2003: Continental Airlines (CAL) selects the Amadeus Electronic Ticket Server Interline Gateway for interline e-ticketing with other carriers (Hawaiian Airlines (HWI) is the first).

DC-9-51 (47714) scrapped.

September 2003: 2002 = -$58.3 Million (+$5.1 Million): 9.04 Billion (RPK) (+4.2%); +4.4% (ASK); 79.1% LF (-.2); 5.9 Million (PAX) (.7%); 81.48 Million (FTK) (+13.6%).

65 (JBL) 11.01; 66 (AIJ) 11.00; 67 (PIA) 10.78; 68 (RYR) 10.20; 69 (EGP) 9.65; 70 (ARG) 9.61; 71 (EZY) 9.21; 72 (HWI) 9.04; 73 (ARE) 9.03; 74 (CQT) 8.99; 75 (SPP) 8.98; 76 (SHY) 8.75; 77 (ARL) 8.69; 78 (PRH) 8.67; 79 (XIN) 8.61.

DC-9-51 (47714) scrapped at Mojave.

October 2003: Hawaiian Airlines (HWI)'s parent is being investigated by the Securities & Exchange Commission (S&EC) concerning its 2002 - 2005 tender offer. The stock buyback has been a concern of airline creditors since it was made just before the airline asked for concessions from its lenders. Airline management received approx 69% of the $25 Million payout.

Returns 2 717-22A's to Boeing Capital Corporation (TBC).

January 2004: 2003 = -$48.18 Million (-$58.28 Million): 9.32 Billion (RPK) (+11.2%); 80.3% LF; 5.68 Million (PAX) (+4.1%); 112.32 Million (FTK) (+37.9%); -45.1% maintenance expenses.

In 2004-05, to Australia.

February 2004: As part of reorganization plan, will bring back Bruce Nobles (CEO) (again), ex-(COO), Air Jamaica (JAM). Corporate Recovery Group (CRG) will invest $30 Million.

March 2004: Hawaiian Holdings stated when it emerges from bankruptcy, new Chairman to be Don Carty, 57, ex-American Airlines (AAL) Chairman & (CEO).

April 2004: In 2004-05, Honolulu (HNL) - Sydney (4/week). Honolulu - Molokai - Lanai City - Kahului - (HNL).

May 2004: In 2004-06, seasonal San Diego - Maui (767-300ER, daily nonstop). San Diego - Kahului.

June 2004: San Diego-based Ranch Capital, heading up an investment group, bought a majority stake in Hawaiian Airlines (HWI)'s parent company. The deal calls for John Adams to resign as (HWI) Chairman & (CEO).

July 2004: Agreements with Alaska Airlines (ASA), Aloha Airlines (ALO), Continental Airlines (CAL), Delta Airlines (DAL), & United Airlines (UAL) to offer interline electronic ticketing, which allows passengers to use one e-ticket when traveling on itineraries that including (HWI) and one of the cooperating airlines. It eliminates the need for the passengers to obtain a paper ticket to transfer from one airline to another, an important convenience in the event of irregular operations.

Last 6 months = +$15.5 Million (-$11.2 Million).

October 2004: Signed a multiyear agreement to renew its Sabre Airline Solutions SabreSonic suite of passenger management solutions. The airline also added 2 new features to its suite: Customer Insight & Customer Data Delivery.

April 2005: 2004 = -$75.4 Million (-$49.5 Million): +40.1% fuel costs.

May 2005: 3,276 employees.

Received USA Bankruptcy Court approval of its reorganization plan and as a result, plans to emerge from Chapter 11 bankruptcy protection next month.

June 2005: David Osborne Senior VP & (CIO).

August 2005: 4,371 employees (+33.4%).

September 2005: The 20 USA airlines reporting performance data to the USA Department of Transportation achieved an on-time arrival rate of 75.2% in August, down from 78.3% in August 2004 but noticeably improved over July 2005's rate of 70.9%. Of the 24.8% of flights that were delayed 15 minutes or more, 7.72% were owing to aviation system delays, including weather; 7.05% to late arriving flights; 6.42% to factors within the airline's control; 1.15% to extreme weather, and .007% for security reasons (numbers may not add up due to rounding). Best overall performance was turned in by Hawaiian Airlines (HWI), which delivered passengers to their destinations ontime 97.4% of the time. On the mainland, Frontier Airlines (FRO) was tops with an 85.1% OTA, followed by ATA Airlines (AAT), which although operating in Chapter 11 achieved an 85% rate. The carrier with the worst performance was Atlantic Southeast Airlines (ASA) at 59.6%, followed by AirTran Airways (CQT) at 64.1% and Northwest Airlines (NWA) at 67.2%. Northwest mechanics (MT) went on strike on Aug 20, which probably contributed to the low performance. (ASA) also had the worst completion factor, canceling 8% of its flights, followed by American Eagle and Delta Air Lines (DAL), both at 3.1%. At the top, Hawaiian (HWI) cancelled 0.1% of flights in August, followed by Frontier (FRO) at 0.2% and ATA (AAT) at 0.3%.

October 2005: Hawaiian Airlines (HWI) appointed Peter Ingram, formerly of American Eagle, (CFO) effective December 1.

November 2005: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported a quarterly net income of +$7.83 million in its 1st complete quarter since emerging from Chapter 11 protection in June. On a (GAAP) basis, the holding company lost -$1.76 million in the year-ago quarter, but GAAP revenue and expense figures for 2004 were not supplied. Operating income in the quarter ended September 30, 2005, was +$17.93 million. "We take little comfort in our 3rd-quarter profits, knowing that fuel prices remain high and competition remains intense as we head into a traditionally weaker period of the year," Holdings President and (CEO) Mark Dunkerley said. Hawaiian (HWI) reported operating revenue of $224.08 million, (RPMs) grew +9%, capacity climbed +6.5% (ASM) and load factor rose +2.3 points to 89.9% LF. Yield dropped from 11.75 cents to 11.62 cents but the higher load factor lifted (RASM) from 11.12 cents to 11.21 cents. Operating expenses totaled $206.15 million. Unit cost increased +5.1% to 10 cents per ASM.

December 2005: Hawaiian Airlines (HWI) will add daily Maui - San Diego service from June 9 aboard 767-300ERs.

January 2006: USA airlines reported an on time arrival rate of 80% in November, an improvement over the 79.1% achieved in November 2004 but a drop from October's rate of 81.3%, according to the "Air Travel Consumer Report" released yesterday by the USA Department of Transportation. As usual, Hawaiian Airlines (HWI) posted the best ontime arrival rate at 95.2%. Frontier Airlines (FRO) was next at 85.3%. JetBlue Airways (JBL) ranked last of the 20 reporting carriers at 74.6%, with Northwest Airlines (NWA) at 74.9%. Delays at (JBL) did not lead to cancellations, however, as the Low-Cost Carrier (LCC) finished tops in completion factor with just 2 cancelled flights during November. Continental Airlines (CAL) and (FRO) cancelled 0.1% of their flights. Comair (COI) had the most cancellations with 2.4%, followed by SkyWest Airlines and Atlantic Southeast Airlines at 1.9%. The overall cancellation rate of 1% was an improvement over November 2004's 1.2% and October 2005's 1.8%. Airlines reported a mishandled baggage rate of 5 reports per 1,000 passengers, worse than the year-ago month's 4.53 and October's 4.9.

February 2006: Hawaiian Airlines (HWI) carrier filed a lawsuit against Mesa Air Group, which aims to start a low-fare inter-island service using CRJ-200s and CRJ-900s. According to news reports, (HWI) claims that Mesa improperly used more than 2,000 pages of confidential data, marketing and route information and financial projections.

(HWI) signed letters of intent (LOI) to acquire four 767-300s rejected by Delta Air Lines (DAL) during its bankruptcy reorganization and said yesterday that it will announce the dates of delivery and introduction into service at a later date.

The 4 airplanes will be overhauled and configured with 18 first class and 242 coach seats and will bring Hawaiian's 767-300 fleet to 18.

767-332 (23275, N116DL), ex-Delta Airlines (DAL), bought from Wilmington Trust.

March 2006: Hawaiian Holdings, parent company of Hawaiian Airlines (HWI), Inc, announced its 4th quarter and year-end 2005 financial results, reporting a consolidated net loss for the 3 months ended December 31, 2005 of -$19.5 million on total operating revenue of $210.3 million.

For the full year 2005, Hawaiian Holdings reported a consolidated net loss of -$12.4 million on total operating revenue of $504.3 million. The company's fourth quarter and annual results were both negatively impacted by an unusually high provision for income taxes which resulted in an effective tax rate of 218 percent for the year. Before income taxes, the company reported earnings of +$10.5 million for the full year and a loss of -$11.6 million for the 4th quarter.

(HWI)’s operating revenue increased +14 percent in the 4th quarter to $210 million and +8% for the year to $826 million. Load factor increased to 89.7% LF in the 4th quarter and to 87.5% LF for 2005.

Hawaiian Holdings, parent of (HWI), said lenders amended its credit facilities to increase them by around $191 million. They now consist of $135 million of term loans and a $25 million revolving line of credit. Proceeds from the financing will be used to fund the purchase of 4 767s (HWI) is buying from Delta Airlines (DAL), redeem its outstanding convertible notes due 2010 and acquire certain assets.

(HWI) will add an extra evening flight from Honolulu to Lihue, Kahului and Kona effective June 9. An extra Honolulu - Hilo frequency will commence June 30.

(HWI) named Senior Director Advertising & Promotions, Kirk Smith VP-Marketing & Sales.

767-332 (23276, N117DL), ex-Delta Airlines (DAL), bought from Wilmington Trust.

May 2006: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported that its net loss for the 1st quarter ended March 31 widened to -$12.3 million from -$2.1 million in the year-ago period. The 2005 results are only for the parent company, which acquired (HWI) as part of the latter's emergence from bankruptcy in June 2005. On a pro-forma basis with the results of Holdings and the airline combined for the 2005 period, the year-ago loss was -$1.7 million.

"The 1st quarter of 2006 was a difficult one for (HWI), which is reflected in our operating, pre-tax and net loss for the period," President and (CEO) Mark Dunkerley said. "While part of the challenge is attributable to this being a seasonally weaker period of the year, and to significant nonrecurring expenses included in our numbers, intense competition and the rising price of fuel have undermined our financial performance as well."

Operating revenues rose +10.8% to $209.7 million compared to pro forma results for 2005, but operating expenses leaped +17.1% to $214.3 million, pushing the carrier into an operating loss of -$4.6 million versus pro forma operating income of -$6.3 million last year.

Yield per (RPM) increased +1.1% to 11.66 cents on a +10.5% rise in (RPM)s passenger traffic. With (ASM)s up just +7.5%, operating revenue per (ASM) grew +5.7% to 11.06 cents on a +2.4-point lift in load factor to 87.5% LF.

Cost per (ASM) rose +11.7% to 11.30 cents, largely owing to a +42% surge in cost per gallon of fuel. However, non-fuel (CASM) adjusted for purchase accounting differences between the two periods, climbed just +0.5% to 8.05 cents. "We continue to apply automation throughout the business to improve efficiency."

Commenting on Mesa Air Group's entry into the Hawaiian inter-island market next month, Dunkerley said during a webcast, "From a competitive standpoint, we believe our 717s give us a product advantage in terms of passenger comfort and the lower costs associated with a larger gauge."

(HWI) will add a 3rd weekly Honolulu - Pago Pago flight from June 14 to August 23. (HWI) announced a "significant" expansion of its service to the western USA from this fall, when it will add 4 767-300s to its fleet, recall 22 furloughed pilots (FC) and hire some 100 new flight attendants (CA). New or expanded services are: Kahului to San Diego (increasing from a summer-only schedule to year-round daily flights from September 6), Seattle (from 4x-weekly to daily from October 13) and Portland, Oregon (from 3x-weekly to daily from October 13); Honolulu to Sacramento (from daily to 11x-weekly from November 19), Seattle (from daily to 10x-weekly effective November 19 through May 2007) and Los Angeles (from 4x-weekly to daily effective summer 2007). Maui - Portland increases to daily service on October 13th. Maui - San Diego goes from seasonal summer service to year-round on September 6th. Maui - Seattle increases to daily service on October 13th.

USA airlines reported an on time performance rate for March of 76.1%, down -0.8 point from the year-ago month but up +0.8 point from February, according to the USA Bureau of Transportation Statistics. (HWI) had the highest March on time rate at 90% among the 19 airlines reporting while United Airlines (UAL) was lowest at 69.3%.

June 2006: Goodrich Corporation (BFG) was selected by Hawaiian Airlines (HWI) to perform heavy maintenance checks, interior standardizations, painting and Extended Twin Engine OPerationS (ETOPS) modifications and other work on four 767-300s prior to their entry into service later this year.

(HWI) filed a motion seeking a court order to stop Mesa Air Group from issuing inter-island tickets for its new startup carrier "go!," which began service June 9. According to the "Associated Press," (HWI) claims to have proof that Mesa's (CFO) used "highly confidential documents and trade secrets obtained from (HWI) in April 2004." At that time, Mesa was among a group of potential bidders for the bankrupt island carrier. In February, (HWI) filed suit against the Regional and Mesa responded a month later with a counter-suit charging (HWI) with violating antitrust laws.

July 2006: USA airlines recorded an on-time arrival rate of 78.3% in May, down from 83.7% in the year-ago month, and 78.4% in April 2006. According to the Bureau of Transportation Statistics, the 20 reporting carriers cancelled 1.2% of domestic flights in May, higher than the 0.9% cancellation rate in the year-ago month and the 1.1% rate in April. Hawaiian Airlines (HWI) led the way in May with a 95% on-time arrival rate while ATA Airlines (AAT) reported the lowest rate at 66.1%. Frontier Airlines (FRO) cancelled just 0.1% of its May flights.

August 2006: USA Department of Transportation said the 20 USA carriers reporting on-time performance posted a 72.8% on-time arrival rate in June, down -2.4 points from the year-ago month. They canceled 1.7% of scheduled domestic flights, up +0.1 point. The mishandled baggage rate of 6.28 reports per 1,000 passengers fell from 6.32 in June 2005. Hawaiian Airlines (HWI) posted the best on-time arrival rate of 94.6% while Atlantic Southeast Airlines' 63.5% was the worst.

(HWI) and Harmony Airways (HMY) of Vancouver (YVR) announced a code share and interline e-ticketing agreement. (HMY) operates 4 757s and flies to Hawaii from (YVR) and Calgary year round and from Kelowna, Edmonton and Victoria seasonally.

October 2006: Employees = 4,371.

Hawaiian Airlines (HWI) named Donald Sealey VP Corporate Audit.

November 2006: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported flat 3rd-quarter net income of +$7.8 million on a +2.5% increase in revenues to $229.8 million.

President and (COO) Mark Dunkerley noted that the 3rd quarter was the 1st earnings period in which (HWI) faced competition from inter-island startup go!, the Mesa Air Group subsidiary, with which it is embroiled in a heated legal battle. "Heavy promotional activity and discounting by our competitors have taken their toll, but we are encouraged that, despite the intensity of this competition, (HWI) had a profitable quarter," he said. "The high price of fuel has offset the significant start we have made in our efforts to cut our costs."

3rd-quarter expenses rose +5.3% to $217.1 million and operating income fell -29.1% to $12.7 million from $17.9 million in the year-ago quarter. Traffic declined -3.2% to 1.74 billion (RPM)s on a +1% lift in capacity to 2 billion (ASM)s, producing a load factor of 86.2% LF, down -3.7 points. Yield grew +5.4% to 12 cents as (RASM) rose +1.6% to 11.18 cents and (CASM) climbed +4.3% to 10.56 cents. (CASM), excluding fuel, decreased 0.4% to 7.40 cents.

(HWI) signed a letter of intent (LOI) to purchase 3 of 7 767-300ERs (23276, N117DL; 23277, N118DL; 23278, N119DL), currently leased from an affiliate of (AWAS) Aviation Services (AWW). (HWI) also amended the leases for the remaining 4 (AWAS) (AWW) airplanes. The purchases are expected to be finalized next month, subject to financing. One of the changes to the (AWAS) (AWW) agreement was to remove a provision that would have allowed the lessor to exercise early termination options by the 1st of the year. Other changes shortened the leases and adjusted the rates.

"We are extremely pleased to have reached this agreement with (AWAS) (AWW), which provides both near-term certainty, by removing the call options on our airplanes and medium-term flexibility by shortening the lease terms on the remaining four airplanes," (HWI) President & (CEO) Mark Dunkerley said. "We believe both developments are positive, as we can now begin to focus on a comprehensive fleet plan for the future."

January 2007: (HWI) said it will suspend its daily San Diego - Maui service January 9 - March 15 due to "an unexpected delay in getting interior modifications completed and certified" on 4 767s.

February 2007: Hurt by high fuel prices and increased competition in the transpacific and inter-island markets, Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a net loss of -$40.5 million for 2006, widened from a net loss of -$12.4 million the prior year.

4th-quarter net loss was -$9.6 million, narrowed from -$19.5 million in the year-ago quarter. President & (CEO) Mark Dunkerley conceded that "2006 was a challenging year," citing a +83.9% surge in annual fuel costs to $241.7 million and "intense competition." Mesa Air Group launched an independent inter-island service in Hawaii last summer with 4 CRJ-200s.

Consolidated full-year operating revenue was up +6.5% to $888 million, but expenses soared +74.6% to $884.9 million, producing operating income of +$3.2 million, down from +$14.1 million in 2005. Traffic rose +3.5% to 6.84 billion (RPM)s on a +5% lift in capacity to 7.92 billion (ASM)s, producing a load factor of 84.6% LF, down -1.2 points. Passenger yield improved +2.9% to 11.65 cents as (RASM) increased +2.2% to 11.02 cents and (CASM) rose +3.7% to 10.98 cents. (CASM), excluding fuel, was down -0.1% to 7.98 cents.

"While most USA airlines enjoy the benefits of reduced capacity in the markets they serve, excess capacity on our main transpacific routes and in the inter-island market persists," Dunkerley said. "Our attention, therefore, is on controlling our costs and the major internal initiatives of 2007 are focused to this end."

(HWI) announced that USA (FAA) Air Traffic Organization (COO), Russell Chew will leave Washington and join the airline as its Executive VP Operations. He replaces the retiring Norm Davies. A former pilot (FC), Chew worked for American Airlines (AAL) for 17 years, and was Managing Director, System Operations Control before joining the (FAA) in 2003.

(HWI) is adding flights this summer from Honolulu to Los Angeles (LAX), Seattle and Pago Pago, in conjunction with the introduction of 4 767-300s into its transpacific fleet. Service to (LAX) will become 21x-weekly, to Seattle 14x-weekly, and to Pago Pago 5x-weekly.

The USA Senate Commerce and Transportation Committee approved legislation to require the screening of all cargo in the bellies of passenger airplanes within 3 years. The Transportation Security Administration last May approved a rule that did not include such a strict requirement. "The steps proposed in this bill will both improve our existing security system and give the Transportation Security Administration the flexibility to combat new and emerging threats," committee Chairman, Daniel Inouye (Democrat-Hawaii) said. It was not clear what types of screening will be acceptable. Passenger airlines have strongly opposed 100% screening of belly cargo on grounds that it is impractical and will slow airfreight flow greatly. While yesterday's legislative action was a 1st step toward possible passage, the proposed bill still is a long way from becoming law, which requires passage by the full Senate and House as well as President Bush's signature.

AWAS (AWW) announced the sale of 3 767-300ERs to (HWI), part of a deal that includes the shortening of an additional 4 airplane leases and 3 spare engine leases. The sold 767s were under lease to (HWI).

March 2007: The USA District Court in Hawaii denied a request by Mesa Air Group to dismiss a complaint filed by its inter-island competitor, Aloha Airlines (ALO), which accused Mesa of predatory pricing and fraud. Aloha (ALO) and rival Hawaiian Airlines (HWI) each allege that Mesa illegally used proprietary information acquired when considering acquiring or investing in the bankrupt island carriers for last summer's launch of its low-cost "go!" subsidiary. "(ALO) is not challenging the prices, per se, but rather it is challenging the means by which Mesa was able to determine those prices, ie, through breaching its contract and implied covenant of good faith and fair dealing with (ALO)," Judge David Ezra wrote.

April 2007: Hawaiian Airlines (HWI) led all USA carriers with a 93.8% on-time percentage in March, according to data compiled by FlightStats. Among continental carriers, Southwest Airlines (84.4%) was the most punctual of the 39 measured. The worst on-time rates belonged to US Airways (AMW)/(USA) (56.6%). Sun Country Airlines (SCA) was the only carrier not to cancel a single flight.

May 2007: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a 1st-quarter net loss of -$11.9 million, narrowed from a net loss of -$12.3 million in the year-ago quarter, as it continued to face stiff competition both on flights to the USA mainland and on inter-island routes. "The 1st quarter saw a continuation of the same circumstances which weighed on our 4th-quarter numbers," President & (CEO) Mark Dunkerley said, noting the "downward pressure on our unit revenues" resulting from competition. Revenue rose +1.5% to $215.2 million, but expenses increased +6.7% to $231.3 million, producing an operating loss of -$16.1 million, widened from an operating loss of -$4.6 million in the year-ago quarter. Scheduled traffic grew +14.2% to 1.86 billion (RPM)s on a +14.2% lift in capacity to 2.12 billion (ASM)s, producing a load factor of 87.4% LF, down -0.1 point.

Yield declined -11.1% to 10.37 cents as (RASM) fell -11% to 9.96 cents and (CASM) decreased -6.4% to 10.70 cents. (CASM), excluding fuel, lowered -5.5% to 7.96 cents.

(HWI), which has been engaged in a costly price war with Mesa Air Group's "go!" for the past year and reported a -$11.9 million first-quarter loss, announced it is cutting -136 jobs. It will lay off -98 nonunion employees and cut -38 vacant positions, which will save it approximately -$4 million per year, the "The Honolulu Advertiser" reported. Layoffs include -47 of 224 management positions as well as Information Technology (IT), Sales & Marketing, & Customer Service.

July 2007: Citing "challenging" competition on its key routes, Hawaiian Airlines (HWI) parent Hawaiian Holdings reported a 2nd-quarter net loss of -$3.9 million, narrowed from -$26.4 million in the year-ago quarter, on a +8.8% rise in revenue to $244.2 million.
"Although revenue performance has firmed during the summer travel season, our financial results continue to reflect a turbulent competitive environment," President & (CEO) Mark Dunkerley said. "On our [Hawaii-mainland USA routes], a multiyear expansion in industry capacity has led to widespread discounting. Meanwhile, the Hawaii inter-island marketplace remains awash with discounts since the entry of a new competitor [Mesa Air Group's "go!"] in June 2006."

Expenses rose +13.6% to $244.8 million and the company posted an operating loss of -$599,000, reversed from an operating profit of +$9 million in the year-ago quarter. Scheduled service traffic increased +19.5% to 1.99 billion (RPM)s on a +19.1% lift in capacity to 2.28 billion (ASM)s, producing a load factor of 87.2% LF, up +0.3 point. Scheduled service yield declined -8% to 11.19 cents. Total operations (RASM) fell -8.5% to 10.56 cents as total operations (CASM) dipped -4.4% to 10.59 cents. (CASM) ex-fuel dropped -4.9% to 7.64 cents.

Dunkerley noted the (CASM) result and said he was "pleased with our performance in controlling costs." (HWI)'s accounting and reservations functions were outsourced during the quarter. "We remain committed to pursuing further cost containment initiatives."

(HWI) promoted VP E-Commerce Rick Peterson to VP Marketing & Sales.

The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include more than a dozen major airlines and Boeing (TBC). (ARINC), which generates >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Continental Airlines (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), Swiss International Air Lines (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the 3rd quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & (CEO) John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.

August 2007: Hawaiian Airlines (HWI) plans to launch Honolulu - Manila service in March pending government approval. The route initially will be served at least 4x-weekly aboard a 767-300ER.

September 2007: Mesa Air Group placed (CFO) Peter Murnane on administrative leave following allegations by Hawaiian Airlines (HWI), that he deleted data that could be material to the ongoing legal dispute over Mesa-owned "go!"'s entrance into the inter-island market last year. Mesa said that it is conducting an internal investigation into "matters relating to Mr Murnane's conduct during the course of the Company's ongoing litigation with Hawaiian Airlines (HWI). This review was initiated by the Company, following reports by persons outside of the Company of potential misconduct. The alleged misconduct does not involve the financial controls, financial statements or operations of the Company." A USA Bankruptcy Court in Honolulu is set to hear arguments this week on (HWI)'s allegation that Mesa inappropriately used information it obtained as a potential investor during (HWI)'s bankruptcy restructuring to launch "go!." According to the "Honolulu Star Bulletin," (HWI) alleges Murnane deleted data that it should have access to as it pursues its lawsuit. Mesa said it "cannot predict the outcome of this investigation" and that its (CFO) could be on leave "for a period of up to 90 days, pending the Company's completion of its review of this matter." VP Finance, William Hoke will perform Murnane's duties in the interim. Mesa Chairman & (CEO) Jonathan Ornstein said, "Our policy is to comply with only the highest ethical standards of conduct and, if we become aware of a potential or alleged violation of such standards, to conduct an appropriate investigation and to take appropriate remedial action when warranted. We will report the outcome of the Company's investigation as soon as it is completed." He emphasized that "the conduct being investigated does not involve the financial operations or performance of the Company."

October 2007: Hawaiian Airlines (HWI) will launch 4x-weekly, Honolulu - Manila service in March, aboard 767-300ERs. (HWI) expects considerable ethnic or family traffic because almost 300,000 people - - nearly a quarter of the residents of Hawaii - - are of Filipino descent. (HWI) also serves Tahiti, American Samoa, and Sydney.

Charles Nardello Senior VP Flight Operations.

Mesa Air Group was dealt a setback by a USA Federal Judge, who ruled that it had misused confidential information obtained from Hawaiian Airlines (HWI), when it was considering investing in the financially ailing carrier. The pre-trial ruling affirms the basic thrust of Hawaiian (HWI)'s lawsuit against Mesa, and pushes the sides to a trial slated to begin in a USA Bankruptcy Court in Honolulu. Hawaiian (HWI) is seeking $173 million in damages and wants the court to ban Mesa subsidiary "go!" from operating for a full year. Mesa touched off an acrimonious inter-island fare war, when it launched "go!" last year, offering prices far below those of Hawaiian (HWI) and Aloha Airlines (ALO). Hawaiian (HWI) alleges that Mesa launched "go!" on the basis of confidential information to which it was privy, during Hawaiian (HWI)'s bankruptcy restructuring. Mesa has denied using any information other than that which is publicly available.

But Judge Robert Faris ruled last month, that "Mesa misused confidential information, when deciding to enter the Hawaii market. The misuse was a substantial factor in Mesa's decision on entering the Hawaii market." He also stated that Mesa (CFO) Peter Murnane wrongly destroyed evidence pertinent to the case. Murnane is on administrative leave. Faris said he did not believe that anyone at Mesa other than Murnane participated in the destruction of evidence but that Mesa bore responsibility since Murnane is its 3rd-ranking executive.

Hawaiian Airlines (HWI), whose lawsuit against the Mesa Air Group is being heard this week, said fares will rise if "go!" is forced out of the market, "The Honolulu Advertiser" reported. (HWI) (CEO) Mark Dunkerly testified that (HWI) is losing up to $50 million per year, because of the fare war launched by "go!" (HWI) is suing Mesa for $175 million and is asking the judge to shut down "go!" for a full year.

November 2007: 1st 6 months = 6.28 billion (RPK)s (+16.53%); (+16.45%) (ASK)s; 87.3% LF (+.1%); 46.44 million (FTK)s (-14.72%); 3.44 million passengers (+15.49%).

Hawaiian Airlines (HWI) received a double dose of good news after a bankruptcy court judge awarded it $80 million in damages in its lawsuit against Mesa Airlines. The verdict came hours after (HWI) reported that net income for the 3rd quarter ended September 30 more than doubled to +$19.6 million from +$7.7 million in the year-ago period. In finding for (HWI), USA Bankruptcy Judge, Robert Faris agreed with its claim that Mesa violated a confidentiality agreement and launched its low-fare inter-island airline "go!" based on information gleaned from documents provided by (HWI), when Mesa was considering bidding on the carrier, which was undergoing a Chapter 11 restructuring at the time. In his decision, Faris wrote, "Mesa breached the confidentiality agreement by failing timely to return to (HWI) or destroy the Evaluation Material, by using the Evaluation Material for purposes other than the evaluation of the potential transaction with (HWI), and by using the Evaluation Material to gain a competitive advantage when Mesa decided to enter the market for Hawaii inter-island air transportation services." Furthermore, "As a natural, proximate and foreseeable consequence of Mesa's breach of the confidentiality agreement, (HWI) has suffered compensable damages in the amount of $80,000,000." But the judge denied (HWI)'s request that Mesa be forced to suspend "go!" ticket sales for a year, stating, "In this case, the award of money damages adequately redresses the harm [HWI] suffered."

(HWI) President & (CEO) Mark Dunkerley hailed the legal victory as "a triumph for fair competition and ethics over dishonesty and illegal behavior." "We are obviously very disappointed with the judgment," Mesa (CEO) Jonathan Ornstein said. "We believe these sanctions went too far and that an impartial appellate court will find the sanctions and this judgment should be set aside." Mesa plans an appeal but it expects will have to post a bond or letter of credit as security during the appeal process. Ornstein claimed the "true motive" behind the lawsuit was to stifle competition and maintain high fares in inter-island service.

(HWI)'s operating revenue for the 3rd quarter increased +17.5% to $272.5 million, while operating expenses rose +12.7% to $247 million. Operating income soared +101% to $25.5 million.

(HWI) announced the choice of Airbus (EDS) airplanes for its wide body fleet renewal, saying it will replace its 18 767-300s and 767-300ERs with up to 24 new planes, comprising 6 firm A330-200s and 6 firm A350 XWB-800s plus 6 purchase rights for each type. Deals under the Memos of Understanding (MOU)s signed with Airbus (EDS) and Rolls-Royce (RRC) are worth approximately $4.4 billion at list prices, if all purchase rights are exercised, (HWI) said. The agreements also "pave the way" for (HWI) to lease additional A330s beginning in 2009. The 1st A350 will be delivered in 2017 and seat 322 passengers in a 2-class configuration. The 1st A330 will arrive in 2012 and seat 305 across 2 classes. (HWI) President & (CEO) Mark Dunkerley said the orders "are important steps in a long-range fleet plan, that provides not only for fleet renewal, but also for growth in our business. We are building flexibility into the plan with some airplanes purchased, some to be leased, and having options for others, which will allow us to scale the fleet according to our needs and opportunities over the next 2 decades." (HWI) said it expects to sign definitive purchase agreements next year.

Rolls-Royce (RRC) said the engines selected by Hawaiian Airlines (HWI) are worth $460 million at list prices. (HWI) placed an order for 6 (Trent XWB)-powered A350 XWB-800s and 6 (Trent 700)-powered A330-200s.

December 2007: Hawaiian Airlines (HWI) has 52 pilots (FC) on furlough status.

January 2008: 2007 statistics: 12.92 billion (RPK)s passenger traffic +15.5%; +14.3% capacity (ASK)s; +.9 load factor for 87.3% LF.


Hawaiian Airlines (HWI)'s fleet overhaul is in jeopardy because of strained relations with its pilots (FC), (HWI) said in a filing with the USA Securities & Exchange Commission. Parent, Hawaiian Holdings said its "proposed acquisition" of 6 firm A350 XWB-800s and 6 firm A330-200s, based on a November Memo of Understanding (MOU) that also included 6 purchase rights for each type, "has been delayed and may not be consummated as a result of an impasse in negotiations with its pilots (FC) union, the Air Line Pilots Assn (ALPA)" Delivery of the 1st A330-200 was scheduled for 2012. (HWI) said that prior to execution of the $4.4 billion agreements with Airbus (EDS) and Rolls-Royce (RRC), it has negotiated with (ALPA) concerning "the terms and conditions under which the airplanes would enter its fleet." It said it may have to cancel the order "due to the risk caused by the uncertainty of operating terms and the financial impact that eventual operating terms may have on the economic merits of the fleet acquisition transactions."

Eric Sampson Chairman of (ALPA)'s (HWI) unit, told the "Honolulu Star-Bulletin" that the airline "negotiated this deal and think we should just be jumping up and down for joy. The collective bargaining agreement doesn't let them do that. This has to be a negotiation." He told the paper that talks center on an adjustment to sick-leave accrual, improved rest facilities on long-haul flights, and expedited contract negotiations. (HWI)'s long-haul fleet currently consists of 18 767-300s and 767-300ERs.

February 2008: Hawaiian Airlines (HWI) parent Hawaiian Holdings reported net income of +$7.1 million for 2007, reversed from a net loss of -$40.5 million the previous year, on a +10.7% boost in revenue to $982.6 million. President & (CEO) Mark Dunkerley called the annual results a "modest improvement" over 2006, but lamented that cost control gains were "largely offset by the rising price of fuel." He added, "Challenges posed by rising fuel prices and heavily contested markets [will] continue unabated in 2008." Those factors, coupled with "a softening USA economy, add urgency" to continued cost improvement initiatives, he said. Full-year expenses increased +9.9% to $975.7 million and operating income totaled +$6.8 million, significantly improved over +$506,000 in 2006. Scheduled services traffic grew +16% to 7.93 billion (RPM)s on a +14.7% lift in capacity to 9.08 billion (ASM)s, producing a load factor of 87.4% LF, up +1 point. Yield declined -3.8% to 11.21 cents as (PRASM) dropped -2.7% to 9.8 cents, and (CASM) decreased -4% to 10.57 cents. (CASM) ex-fuel lowered -7.5% to 7.41 cents.

4th-quarter net income was +$3.3 million, reversed from a -$9.6 million loss the prior year.

The USA Department of Transportation released its final Air Travel Consumer Report for 2007 and said that, according to the Bureau of Transportation Statistics, the 20 USA carriers recording ontime performance reported a 73.4% ontime arrival rate, down -2 points from 2006. In addition, mishandled baggage reports increased +4.5% to 7.03 per 1,000 passengers, while consumer complaints soared +58.2%. In December, airlines reported a 64.3% ontime arrival rate, down from 70.8% in the year-ago month. Cancellations of scheduled domestic departures rose to 3.5% from 3% in December 2006.

Aloha Airlines (ALO) and (HWI) led the way in punctuality, followed by US Airways (AMW)/(USA) at 74.5%. American Eagle Airlines' 53.6% was the worst ontime rate and its 8.3% cancellation rate also was tops. Frontier Airlines (FRO), based in wintry Denver, managed to operate the highest proportion of its scheduled flights at 99%.

(HWI) was able to sign definitive purchase agreements for 6 A330-200s and 6 A350 XWB-800s, plus purchase rights for 6 of each, following the conclusion of "key labor agreements" with its pilot (FC) and cabin (CA) staff unions. A dispute with pilots (FC) had threatened to scuttle the up-to-$4.4 billion deal. (HWI) said it now will endeavor to lease additional airplanes for entry into service in the 2009 to 2012 period. It will take delivery of 2 305-seat A330s in 2012, 3 in 2013, and 1 in 2014. 2 322-seat A350s will arrive in 2017, with 2, 1 and 1 coming in each of the subsequent 3 years. Details of the new labor accords were not released.

March 2008: Aloha Airlines (ALO), which emerged from bankruptcy in February 2006, filed Chapter 11 again and cited actions by Mesa Air Group's "go!" as the main impetus behind the latest filing. "It's a travesty and a tragedy that the illegal actions of a competitor, and other factors completely beyond our control have forced us to take this action," (CEO) David Banmiller said. "Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for (ALO)." Company officials said they will ask the bankruptcy court for permission to continue operating while going through Chapter 11 restructuring. (ALO) and Hawaiian Airlines (HWI) have been engaged in a fierce battle against "go!" since it began low-fare inter-island service with 50-seat CRJs in June 2006. Both took legal action against the startup, charging that Mesa had misused confidential information obtained when it was considering an acquisition of the island carriers. (HWI) was awarded $80 million in October 2007 by a bankruptcy court. (ALO)'s case is still pending.

The inter-island fare wars and the continued escalation of fuel costs have chipped away at profits for all of the carriers. "In the highly competitive inter-island market, (ALO) was forced to match "go!"'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel," Aloha (ALO) said. "The action taken by (ALO) reflects the difficult operating environment in Hawaii's airline industry," (HWI) President & (CEO) Mark Dunkerley said. "It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure."

April 2008: Hawaiian Airlines (HWI) is the oldest and largest Hawaiian carrier serving the islands of Maui, Kauai, Lanai, Molokai, and the Big Island of Hawaii from its Honolulu hub. Services are also operated to USA mainland destinations.

Employees = 3,454.

(IATA) Code: HA - 173. (ICAO) Code: HAL (Callsign - HAWAIIAN).

Parent organization/shareholders: Hawaiian Holdings.

Alliances: Alaska Airlines (ASA); USA Airways (AMW)/(USA); American Airlines (AAL); American Eagle Airlines; Continental Airlines (CAL); Horizon Air; & Northwest Airlines (NWA).

Main Base: Honolulu International Airport (HNL).

Domestic, Scheduled Destinations: Hilo; Honolulu; Hoolehua; Kahului; Kapalua; Kauai Island; Kona; Lanai; Las Vegas; Los Angeles; Phoenix; Portland; Sacramento; San Diego; San Francisco; San Jose; Seattle; & Spokane.

International, Scheduled Destinations: Pago Pago; Papeete; & Sydney.

Regarding the "Open Skies" bilateral agreement between Australia and the USA, please read the attached - "HWI-AUS-USA-2008-04."

Hawaiian Airlines (HWI) will launch daily, Honolulu - Oakland on May 1 aboard a 264-seat 767.

Hawaiian Airlines (HWI) and Mesa Air Group reached a $52.5 million settlement in their case regarding Mesa's alleged misuse of confidential information in the establishment of its "go!" inter-island subsidiary. Mesa will make a cash payment to (HWI) and agreed to withdraw its appeal of the $80 million judgment levied by the USA Bankruptcy Court six months ago. "This settlement is the last chapter in the legal dispute over Mesa's misuse of Hawaiian (HWI)'s confidential information. We were delighted with the award of damages and this settlement," (HWI) President & (CEO) Mark Dunkerley said. Mesa said the settlement "does not restrict in any way "go!"'s ability to continue to offer services" and that it would make the payment "without admitting any wrongdoing."

May 2008: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a -$19.9 million loss in the 1st quarter, widened from a -$11.9 million deficit in the year-ago period, but its prospects have brightened somewhat owing to events that have transpired since the quarter's conclusion. The shutdown of both Aloha Airlines (ALO) and (ATA) Airlines (AAT), as well as the $52.5 million litigation settlement reached with "go!" parent, Mesa Air Group, leave (HWI) in better position to negotiate the worsening economic environment. "The reduction in capacity occasioned by the collapse of (ALO) and (AAT), removes for us 1 of the 2 major challenges facing USA airlines today," President & (CEO) Mark Dunkerley said. "The price of fuel remains an enormous difficulty, but we are much better positioned to meet this challenge, than we were just a month or so ago." He added that (HWI) has not seen an erosion of demand despite the softening economy and warned that "the USA airline industry is in the midst of substantial upheaval, the outcome of which remains uncertain."

In the 1st quarter, revenue rose +16.7% to $251.2 million, driven by a +19.6% year-over-year increase in passenger revenue. Costs climbed +18.1% to $273.2 million, helping to sink (HWI)'s operating loss to -$22 million, compared to -$16.1 million in the year-ago period. It flew 1.94 billion (RPM)s during the quarter, up +2.5%, against a +5.6% lift in capacity to 2.28 billion (ASK)s. Load factor fell -2.5 points to 85% LF. Operating (RASM) rose +10.6% to 11.01 cents, and unit costs climbed +12% to 11.98 cents. Passenger yield was up +15.1% to 11.93 cents. "Like every other USA carrier, record fuel prices and excess capacity were the major negative influences on our 1st-quarter results," Dunkerley said. "Despite this, we successfully managed our nonfuel costs within our internal expectations and improved our revenue performance in spite of the challenging competitive situation in our markets during the 1st quarter."

(HWI) launched a daily, Honolulu - Oakland 767 service. United Airlines (UAL) inked a code share agreement with (HWI) allowing (UAL) passengers traveling on its 18 daily flights from the continental USA to Hawaii, to connect to (HWI)'s inter-island flights. The deal fills a void left by (UAL)'s former inter-island code share partner Aloha Airlines (ALO), which ceased operations in April. New agreement will take effect by the end of the summer, (UAL) said.

June 2008: Hawaiian Airlines (HWI) named Avi Mannis VP Revenue Management & Schedule Planning.

(HWI) has recalled all pilots (FC) on furlough status and is accepting resumes and hiring. Applicants can apply at http://www.hawaiianair.com/jobs.

(HWI) will lease 4 717-200s from Boeing Capital Corp (TBC) to "better meet the needs of Hawaii's interisland travelers" following the shutdown of Aloha Airlines (ALO) 2 months ago. 2 airplanes will enter service in September and others in November and December. (HWI) currently flies 11 717-200s and operates 150 daily inter-island flights. In support of its inter-island expansion, it has hired +230 additional employees and plans +160 more.

July 2008: Hawaiian Holdings, the parent company of Hawaiian Airlines (HWI), posted net income of +$54.3 million for the 2nd quarter. (HWI) picked up +21% more passengers in the 2nd quarter, after competitors (ATA) Airlines (AAT) and Aloha Airlines (ALO) folded. (HWI) posted a net loss of -$3.9 million last year in the 2nd quarter.

(HWI) will begin charging $17 each way for a 2nd piece of checked baggage on inter-island flights July 15. Certain premium customers are exempt. Starting with tickets purchased after August 1 and travel starting October 1 or later, (HWI) will charge $15 for travelers' 1st checked bag on flights between Hawaii and the mainland. (HWI) also made changes to its frequent flier program. Now, 15,000 miles will be the minimum required for redeeming reward travel.

August 2008: Brian Worth, elevated to Senior Director Marketing.

September 2008: Aviation Partners Boeing (APB) said it expects its 767 winglet program to be a runaway success and announced agreements to fit blended winglets on 767-300ERs operated by Air New Zealand (ANZ) and Hawaiian Airlines (HWI). (ANZ) said it will fit its 5 767-300ERs with blended winglets by the end of next year, and (HWI) said it will have 8 of the type fitted by the end of 2010. (APB) claims that winglets on 737s and 757s have saved a collective 1.2 billion gallons of fuel and 11.5 million tonnes of CO2, while reducing those types' noise footprint by -6.5%. It has sold winglets to 140 airlines and 95% of all 737NGs are fitted with them. It is working on 4 winglet concepts for the 777 and hopes to finalize a design for that airplane type by December. (ANZ) is expected to be the launch customer. (ANZ) General Manager Airline Operations David Morgan said that he expects (ANZ) to save >NZ$7.5 million/$5 million in fuel costs and 16,000 tonnes of CO2 emissions annually, by fitting blended winglets on its 767-300ERs. The 767 fleet, which operates regional international services, will be fitted progressively from next July. The work will be carried out by (ANZ) Technical Operations.

The 767-300ER winglets are 3.4 m high and the program, launched by American Airlines (AAL), is expected to gain certification later this year. (APB) Director Sales & Marketing Craig McCallum said the 767 winglet program has been the fastest-selling, with 141 shipsets already sold. He forecast fuel savings of -4% to -6% for medium/long-range flights, with 500-nm flights experiencing a -1.5% fuel savings. (ANZ) also has committed to fitting its entire fleet of 42 airplanes with (CCT) Systems' zonal dryers. The electrically powered dryers reduce moisture trapped in insulation between the airplane outer skin and cabin lining, lowering airplane weight. (ANZ) expects fleetwide savings of -500,000 gallons of fuel annually owing to the dryers, which are standard on the 787 and an option on the A350.

Hawaiian Airlines (HWI) is no longer accepting Flight Crew (FC) applications.

October 2008: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported 3rd-quarter net income of +$6 million, down -69.4% from +$19.6 million in the year-ago quarter, explaining that improvements in inter-island and transpacific revenue were "offset by the high cost of fuel." President & (CEO) Mark Dunkerley commented that (HWI)'s results "bettered the sizable losses" posted by many USA airlines. He added that the "retreat of fuel prices will lower our operating costs" but expressed concern that benefits from lower fuel expenses will be "tempered by the uncertain economic environment and its effect on demand for Hawaii vacations."

3rd-quarter revenue rose +24.7% to $339.9 million, while expenses increased +26.6% to $312.6 million, producing operating income of +$27.3 million, up +6.6% from +$25.6 million last year. Scheduled services traffic dropped -6.1% to 1.96 billion (RPM)s on a +2.6% lift in capacity to 2.44 billion (ASM)s, pushing load factor down -7.5 points to 80.3% LF.

Passenger yield heightened +34.2% to 15.95 cents, as (PRASM) increased +22.7% to 12.81 cents and (CASM) jumped +24.8% to 12.8 cents, as fuel costs leaped +70.8% to $131.2 million. (CASM) excluding fuel, was up +5.1% to 7.43 cents.

(HWI) is aiming to cut fuel bills by -$4 million this year by reducing speed in the air, towing planes on the ground and washing jet engines more frequently. The airline also is cutting -3,000 pounds from the weight of its 767-300 jets by ordering lighter seats and smaller carts for in-flight service. "We're doing everything we can to save on fuel, and we're exploring other ways to see how we can save," said Charles Nardello Senior VP Operations.

(HWI) named Dennis Manibusan as VP Maintenance & Engineering, effective October 13. He comes from (ABX) Air, where he was Senior VP Maintenance & Engineering.

(HWI) took delivery of the 1st of 4 717-200s on lease from Boeing Capital Corporation. The remaining airplanes will arrive 1 per month in November, December, and January, at which point, (HWI) will have 15 717s operating on its inter-island network. The airplanes will seat 118 to 123 passengers, with 8 seats in 1st class (F) and will replace a 767-300 used on inter-island routes, while restoring a spare airplane to (HWI)'s 717 and 767 fleets. By year end, (HWI) will have added +110 weekly flights from Honolulu: 40 to Lihue, 27 to Kahului, 25 to Kona, and 18 to Hilo. "The reason why we are doing this, is because we want to provide more flights and seats to the customers, based in the islands," said (CEO) Mark Dunkerly at the unveiling.

(HWI) reached lease agreements with (AWAS) (AWW) that will add 2 more A330-200s to its fleet in the 1st half of 2011. (HWI) already has 6 A330-200s and 6 A350 XWB-800s on order, plus purchase rights for 6 of each. (HWI) also announced a separate agreement with (AWAS) (AWW) to extend leases on 2 767-300ERs to 2011. The newly leased A330s will replace those 767s.

November 2008: 1st 6 months = 6.39 billion (RPK)s traffic (+1.73%); +4.49%(ASK)s capacity; 85% LF (-2.3); 51.04 million (FTK)s freight traffic (+9.91%); 3.99 million passengers (+12.78%).

Aloha Airlines (ALO) may grace Hawaii's skies again, though this time the name would be used by the bankrupt carrier's nemesis, the owner of "go!" airline. Mesa Air Group Inc made the deal with Aloha (ALO)'s former majority owner, Yucaipa Companies (YUC), to use the (ALO) name as part of settling a lawsuit in which (ALO) alleged that Mesa misused confidential information to launch "go!" and drive Aloha (ALO) out of business. Other settlement terms call for giving Aloha (ALO)'s roughly 3,500 former employees travel benefits on "go!," paying Yucaipa $2 million, and making Yucaipa (YUC) a significant owner of Mesa by issuing the company close to 2.7 million shares of common stock, representing 10% of Mesa stock.

Phoenix-based Mesa said it resolves a potentially damaging lawsuit and allows the company to focus on providing inter-island air service possibly under the historic (ALO) name early next year. In a way, the pact stands to resurrect a 62-year-old kama'aina airline that ceased flying in March. But some former (ALO) employees cringed at the idea of "go!" recasting itself as Aloha (ALO). "How ironic is that?" said Wayne Wakeman, a 20-year (ALO) pilot (FC), who is still hunting for a job 8 months after (ALO)'s shutdown. "They tried to put us out of business, and now they want to use the name Aloha (ALO). It kinda would be a slap in the face." Still, Wakeman said he believes most former (ALO) employees would use "go!" travel benefits, despite the ill will toward the airline, because similar travel benefits are valuable and were frequently used by (ALO) employees when they had them.

Mesa has yet to define what kind of inter-island travel benefits it will provide and for how long. Helen Sham, who assisted passengers as an (ALO) flight attendant (CA) for 41 years, said she won't be flying free or at reduced cost on "go!" or a Mesa-owned, (ALO). "They did run us out," she said. "My feeling is not with them." Sham recently landed a job with "go!" rival Mokulele Airlines, and said the spirit of (ALO) has moved on with its former employees.

Hawaiian Airlines (HWI), (ALO)'s longtime and mostly friendly rival, reserved comment on Mesa's tentative deal to re-brand itself as (ALO). Paul Skellon, a spokesman for Mesa, said the primary objective for Mesa settling the lawsuit (ALO) filed in January 2007 wasn't to rebrand go! as (ALO), but to remove a potential expense that could have been costly.

A similar lawsuit by (HWI) against Mesa resulted in an $84 million court judgment that was appealed and then settled this year for $52.5 million. But if Mesa obtains Aloha (ALO)'s name, it would give the carrier a strong brand well known in Hawaii and on the Mainland that would benefit Mesa, especially if the company ever begins transpacific service. Skellon said there are no plans to fly to the Mainland, but it could happen one day.

"We intend to carry on (ALO)'s proud tradition, maintain Mesa's status as Hawaii's low-cost air carrier, and look forward to future growth opportunities made possible with this settlement," Jonathan Ornstein, Mesa Chairman & (CEO) said.

Mesa's settlement with Yucaipa (YUC) is difficult to value. Shares of Mesa stock being issued to (YUC) are worth around $538,000, based on Mesa stock that closed at 20 cents a share. On top of the $2 million in cash, (YUC) plans to license the Aloha (ALO) name to Mesa for undisclosed terms. Licensing the Aloha (ALO) name to Mesa is subject to Yucaipa (YUC) being the high bidder for the name and other intellectual property at a bankruptcy court auction. Anyone wanting to outbid (YUC) will have to offer at least $575,000 for the intellectual assets under auction guidelines. Yucaipa (YUC), as the largest creditor in (ALO)'s bankruptcy, has offered to pay $25,000 in cash and forgo trying to collect $500,000 of the >$106 million, it claims to be owed. The company could raise its bid if competition emerges. (YUC) made a similar credit bid of $10 million to acquire the rights to (ALO)'s lawsuit against Mesa.

Other (ALO) assets sold, included a contract services division and an air cargo operation now doing business as Aloha Air Cargo.

Yucaipa (YUC) is a private investment firm headed by California billionaire Ron Burkle. (YUC) and former professional football player Willie Gault purchased (ALO) and brought it out of bankruptcy in 2005. (ALO) was founded by publisher Ruddy Tongg as "Trans-Pacific Airlines" in 1946, and in 1958 was renamed Aloha Airlines (ALO). The airline filed for bankruptcy on March 20, after losing >$120 million in the previous 2 years, because of soaring fuel prices and a heated inter-island fare war touched off by "go!," then abruptly shut down March 31.

(HWI) announced the acquisition of an additional 298-seat, A330-200 on lease from CIT (TCI). It reached an agreement to lease 2 others from (AWAS) (AWW) last month and has 6 of the type on order. (HWI) will take delivery of 2 of the leased A330s in the 2010 2nd quarter, beginning its "transition to a new long-range fleet 2 years earlier than originally planned." The 2nd (AWAS) (AWW) airplane will join the fleet in 2011 and the Airbus deliveries will begin the following year.

December 2008: 1 717-2CM (55001, N488HA), MDFC leased, ex-(VH-NXF).

January 2009: Hawaiian Airlines (HWI) flew 652.8 million (RPM)s traffic in December, down -0.4% year-over-year. Capacity rose +2.8% to 821.4 million (ASM)s and load factor dropped -2.6 points to 79.5% LF.

Miranda Scott was promoted to Senior Director Business Development. In her expanded role, she will be putting increased emphasis on creating new online business opportunities.

February 2009: Hawaiian Airlines (HWI) flew 647.6 million (RPM)s traffic in January, down -0.6% year-over-year. Capacity rose +5.4% to 827.3 million (ASM)s and load factor fell -4.8 points to 78.3% LF.

(HWI) parent, Hawaiian Holdings benefitted from the "unpredicted fortune" of the collapse of its 2 chief competitors in the 1st half of 2008 to post net income of +$28.6 million for the year, >4x its 2007 net profit of +$7.1 million and a notable result given the substantial annual losses reported by most USA carriers. Both Aloha Airlines (ALO) and ATA Airlines (AAT), previously (HWI)'s most significant rivals, ceased operations in the 2nd quarter, developments that along with declining fuel costs in the 2nd half of the year helped to "offset" the impact of the "severe recession," President & (CEO) Mark Dunkerley said. He warned, however, of the "tenuous nature of demand" with Hawaiian tourism "deeply affected by sweeping economic challenges."

Full-year 2008 revenue surged +23.2% to $1.21 billion, while expenses rose +14.7% to $1.1 billion, producing operating income of +$91.9 million. Net income was affected by $20.7 million in interest on debt and $24.6 million in income tax expenses.

Scheduled service traffic lowered -1.1% to 7.84 billion (RPM)s on a +4.4% rise in capacity to 9.48 billion (ASM)s, producing a load factor of 82.7% LF, down -4.7 points. Yield was ahead +25.8% to 14.1 cents as (PRASM) rose +19.1% to 11.66 cents and (CASM) on total operations heightened +11.4% to 11.77 cents. (CASM) was up +6.1% to 7.86 cents excluding fuel and its litigation settlement with the Mesa Air Group.

March 2009: Hawaiian Airlines (HWI) flew 613.8 million (RPM)s traffic in February, up +0.9% year-over-year, against a +2.4% increase in capacity to 739.3 million (ASM)s. Load factor fell -1.2 points to 83% LF.

The International Association of Machinists & Aerospace Workers (IAM) District 141 announced a tentative agreement with (HWI) covering the carrier's 1,500 customer service, reservation, ramp and clerical employees. The proposed two-year contract provides wage increases ranging from 3% to 10%, freezes current employee health care contributions, provides an incentive compensation program and enables performance and profit bonuses. Additional contract adjustments recognize the challenges facing the industry. "This tentative agreement puts more money into our members' pockets during extremely difficult economic times," said (IAM) District 141 President Rich Delaney. "Our negotiating committee unanimously recommends ratification of the agreement." The tentative accord, the 1st since (HWI) emerged from bankruptcy in 2005, is subject to a membership ratification vote. Ratification results will be available after March 25, 2009.

Separate negotiations between (HWI) and (IAM) District 142, which represents (HWI)'s 560 mechanic (MT) & related employees, are continuing.

The (IAM) is the largest airline union in North America, representing >100,000 airline employees in almost every classification, including flight attendant (CA), mechanic (MT) & related, fleet service, customer service and reservation agents. More information about the (IAM) is available at http://www.goiam.org.

April 2009: Hawaiian Airlines (HWI) said it expects 1st-quarter passenger (RASM) to rise +3.5% to +5.5% year-over-year. It flew 698.6 million (RPM)s traffic in March, up +2.9% year-over-year, against a +6.6% increase in capacity to 825.9 million (ASM)s. Load factor fell -3.1 points to 84.6% LF.

(HWI) parent, Hawaiian Holdings earned a +$23.5 million profit in the 1st quarter, reversed from a -$19.9 million loss in the year-ago period when it still faced competition from defunct Aloha Airlines (ALO) and (ATA) Airlines (AAT). "The benefits of a significant decline in the price of fuel more than offset the consequences of weaker demand for Hawaii vacations, while several years of diligent cost control in areas of expense that we influence added to the overall results," President & (CEO) Mark Dunkerley said.

(HWI)'s revenue climbed +14.9% year-over-year to $288.6 million against a -7.5% fall in expenses to $252.7 million. Operating profit was +$35.9 million compared to a -$22 million loss last year. The carrier flew 1.96 billion (RPM)s traffic during the quarter, up +1.1%, on a +4.9% increase in capacity to 2.39 billion (ASM)s. Load factor slid -3.1 points to 81.9% LF. Operating (RASM) rose +9.5% to 12.06 cents, while (CASM) dropped -11.9% to 10.56 cents as fuel costs fell -44.9%. Unit costs were up +5.9% to 8.46 cents excluding fuel. Dunkerley said that short-term bookings "remain robust, albeit at fares lower than last year and lower than in the 1st quarter."

(HWI) announced an open-ended stock repurchase program worth up to $7 million.

(HWI) will operate a 3rd weekly, Honolulu - Pago Pago flight June 16 to August 18.

USA airlines' customer service improved for the 1st time in 5 years in 2008, researchers from St Louis University and Wichita State University said in releasing their annual "Airline Quality Rating (AQR)" report. Improvement was across the board, with carriers scoring better on baggage handling, on time performance, denied boarding and customer complaints, researchers said. The airline with the best overall (AQR) among the 17 graded was Hawaiian Airlines (HWI), followed by AirTran Airways (CQT), JetBlue Airways (JBL), Northwest Airlines (NWA) and Alaska Airlines (ASA).

Baggage handling improved at all 17 airlines, the report said. "Baggage handling probably needed to improve given the fact that people are now paying for it," Wichita State Associate Professor Dean Headley said. "The airlines would have had a real problem had they lost the same number of bags." AirTran (CQT) had the best baggage handling rate with only 2.87 mishandled bags per 1,000 passengers.

Hawaiian (HWI) had the best on-time performance at 90% while American Airlines (AAL) was worst at 69.8%. (JBL) had the lowest involuntary denied boarding rate at 0.01 per 10,000 passengers while (ASA) was last at 3.89 per 10,000 passengers. Southwest Airlines (SWA) had the lowest consumer complaint rate at 0.25 per 100,000 passengers, while US Airways (AMW)/(USA) had the highest rate of 2.01. Headley said the positive performance for airlines in 2008 should be taken "with a grain of salt," explaining, "We know the system performs better when it's less stressed by higher passenger volume. The economy scared away both business and leisure travelers in 2008."

May 2009: Hawaiian Airlines (HWI) flew 667.4 million (RPM)s traffic in April, a -2.5% year-over-year decrease. Capacity rose +1.6% to 790.4 million (ASM)s and load factor fell -3.6 points to 84.4% LF.

(HWI) and Korean Airlines (KAL) will expand their code sharing agreement from June 15 to allow (HWI) to place its code on flights operated by (KAL) between Seoul Incheon (ICN) and Honolulu and between (ICN) and Busan, as well as from (ICN) to destinations in Japan, Malaysia and Thailand. The two carriers began a code share relationship in 2007, with (KAL) putting its code on (HWI)'s inter-island and Hawaii - USA mainland flights.

June 2009: Hawaiian Airlines (HWI) said its May traffic fell -2% year-over-year to 682.6 million (RPM)s on a +0.9% lift in capacity to 819.5 million (ASM)s, producing a load factor of 83.3% LF, down -2.4 points.

July 2009: Hawaiian Airlines (HWI) flew 701.6 million (RPM)s traffic in June, up +7.4% year-over-year, against a +3% rise in capacity to 825.3 million (ASM)s. Load factor rose +3.5 points to 85% LF.

(HWI) parent, Hawaiian Holdings remained in the black in the 2nd quarter, posting a +$27.5 million profit that compared to a +$54.3 million surplus in the year-ago period. "Unlike most of our competitors, we have been able to strengthen our balance sheet over the course of the last 6 months. With the credit markets in turmoil, and recognizing that we have a number of substantial outlays in the next few years, this comparative strength is of tremendous importance," President & (CEO) Mark Dunkerley said. "Higher fuel prices and lower fares suggest that the period ahead will be even more challenging, so this good start to the year is vital."

Operating revenue fell -8.5% to $292 million against a -3.8% decline in expenses to $260.3 million. Operating profit was down -34.6% to +$31.7 million from +$48.5 million in the 2nd quarter of 2008, when (HWI) benefited from a $52.5 million settlement in its case against thr Mesa Air Group. It gained +$6.5 million on its fuel hedges.

(HWI) flew 2.05 billion (RPM)s traffic during the quarter, up +0.8%, while capacity rose +1.8% to 2.44 billion (ASM)s. Load factor slipped -0.9 point to 84.2% LF. Operating unit revenue was down -10.2% to 11.99 cents and operating (CASM) declined -5.6% to 10.69 cents.

(HWI)'s 6-month profit of +$51 million represented a +48.2% increase from the +$34.4 million reported in the year-ago semester. Operating income more than doubled to +$67.6 million from +$26.5 million.

(HWI) also said its board opted to cancel a stock purchase program launched in March "in light of the substantial increase" in the stock price since then.

Delta (DAL) TechOps entered into a Memo of Understanding (MOU) with Hawaiian Airlines (HWI) to provide Complete Fleet support for (HWI)'s new A330-200 fleet. The long-term agreement, which is valued at up to $500 million, also includes an extension of an existing deal covering its 767s.

August 2009: Hawaiian Airlines (HWI) flew 745.4 million (RPM)s traffic in July, a +10.4% increase year-over-year, while capacity rose +1.9% to 874.7 million (ASM)s. Load factor surged +6.5 points to 85.2% LF.

(HWI) said it has hired >100 maintenance (MT), service, contract, ramp and cleaning personnel "in recent months" and plans to add +170 more employees (including 25 pilots (FC) and 30 flight attendants (CA)) by early next year as it prepares for the April delivery of its 1st A330-200. (HWI) currently has 3,756 employees. (HWI) signed an order for 6 A330-200s and 6 A350-800s, plus purchase rights for 6 of each type, 18 months ago. (HWI) followed with lease agreements for another 3 A330s last October.

Hawaiian Airlines' Air Line Pilots Association (ALPA) (MEC) launched a strike ballot lasting until September 10 asking for authority to strike in protest of "2-and-a-half years of stalled contract negotiations and 6 years of bankruptcy-imposed contract terms," the union said. Permission to strike also must be secured from the USA National Mediation Board, which first must formally declare an impasse in negotiations and establish a 30-day cooling-off period after which either side can resort to self-help measures. (ALPA) said 4 days of talks last week produced "progress" on retirement issues but that disagreements with (HWI) remain over the "size and structure of future pay increases," including the airline's wish to tie raises to "productivity enhancements." It represents 405 pilots (FC) at (HWI).

September 2009: Hawaiian Airlines (HWI) flew 734.8 million (RPM)s traffic in August, a +7.3% lift year-over-year. Capacity was up +3.2% to 860.1 million (ASM)s and load factor rose +3.3 points to 85.4% LF.

(HWI) carried 746,646 passengers in August, a +2.9% increase over last year. For the year to date, (HWI)'s passenger count is up +4.7%, reaching 5.5 million, while the load factor has slipped by -0.1%.

The top US airline for on-time performance in August was (HWI) with 94.35% (http://www.flightstats.com).

(HWI) and Korean Air (KAL) launched an expanded code share arrangement under which (HWI) will place its code on (KAL)'s flights from Incheon to Busan and Honolulu.

(HWI) will start charging $10 for the first checked bag on inter-island flights beginning September 14. "Our costs continue to rise and fares have simply not kept pace. We've held the line on this fee as long as possible, but have to remain competitive," Senior VP Marketing & Sales, Glenn Taniguchi said. Premium loyalty program members, business class (C) passengers and those traveling on international tickets including points in Hawaii are exempt.

October 2009: Hawaiian Airlines (HWI) flew 647.5 million (RPM)s traffic in September, a +8.1% increase over the year-ago month. Capacity rose +3.1% to 772.5 million (ASM)s, lifting load factor +3.8 points to 83.8% LF.

(HWI) parent, Hawaiian Holdings reported a +$30.7 million 3rd-quarter profit compared to a $6 million surplus in the year-ago period thanks to lower fuel prices and a 1-time tax benefit of +$20 million. Revenue fell -10.1% year-over-year to $305.6 million, while expenses were down -9.8% to $281.9 million. Operating income slipped -13.1% to $23.7 million. (HWI)'s traffic (RPM)s rose +8.6% to 2.13 billion against a -2.7% lift in capacity to 2.51 billion (ASM)s, lifting load factor +4.6 points to 84.9% LF. Yield declined -20.7% to 12.65 cents, operating (RASM) fell -12.4% and (CASM) was down -12.3%. "Looking ahead to the fourth quarter, we continue to face better prospects than most of our competitors and we hope that the level of demand will strengthen more rapidly than the price of oil, allowing us to remain profitable," President & (CEO) Mark Dunkerley said. 9-month net income of +$81.7 million was double the +$40.5 million earned in the year-ago period.

Hawaiian (HWI) started a class of around 10 pilots (FC) in October and is planning a class in November. (HWI) is not currently interviewing (FC) applicants.

November 2009: Hawaiian Airlines (HWI) flew 680.7 million (RPM)s traffic in October, a +5.7% increase year-over-year, and capacity rose +2.6% to 797.7 million (ASM)s. Load factor climbed +2.4 points to 85.3% LF.

(HWI) said dispatchers represented by the Transport Workers Union ratified a new four-year labor agreement providing "increased pay and benefits as well as profit sharing" to the employees and "operational improvements" to (HWI).

(HWI) said it completed installation of Aviation Partners Boeing (APB) blended winglets on a 767-300. It expects to have winglets installed on 8 767s by next summer. (HWI) estimated that winglets will produce savings of -700 to - 800 gallons of fuel for every round trip between the USS West Coast and Hawaii. Everett, Washington based Aviation Technical Services (ATS) has wrapped up the 1st installation of Aviation Partners Boeing (APB) winglets on a (HWI) 767-300ER. The completion is part of a September 2009 contract to install 8 winglet shipsets on (HWI)'s fleet of 767-300ERs. (ATS) is performing the installations at its facility in Everett. The company says it has installed around 130 shipsets for various operators of 737, 757 and C-32 airplanes.

December 2009: Hawaiian Airlines (HWI) flew 644.3 million (RPM)s traffic in November, up +2.4% year-over-year. Capacity dropped -4.1% to 763.4 million (ASM)s and load factor rose +5.3 points to 84.4% LF.

(HWI) and the International Association of Machinists and Aerospace Workers-Clerical Division, which represents 1,245 (HWI) airport customer service, ramp, reservations, schedule planning, purchasing, records, and crew scheduling employees, announced a tentative agreement on a four-year labor contract. A ratification vote by union members is expected in the coming weeks.

The USA Air Transport Association (ATA) announced that 15 airlines have signed Memos of Understanding (MOU)s with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada (ACN), American Airlines (AAL), Atlas Air (TLS), Delta Air Lines (DAL)/(NWA), FedEx Express (FED), JetBlue Airways (JBL), Lufthansa (DLH), Mexicana (CMA), Polar Air Cargo (PAO), United Airlines (UAL), (UPS) Airlines, and US Airways (AMW)/(USA) signed with both providers. Alaska Airlines (ASA) and (HWI) went with AltAir only and AirTran Airways (CQT) signed with Rentech. The (ATA) said discussions with additional fuel producers "about other projects" have started. "This agreement is a significant step forward, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement," Rentech President & (CEO) D Hunt Ramsbottom said.

AltAir is working on producing some 75 million gallons of jet and diesel fuel derived from camelina oils or comparable feedstock per year at a new plant in Anacortes, Washington, USA. Rentech plans to produce around 250 million gallons per year of synthetic jet fuel derived principally from coal or petroleum coke near Natchez, Mississipi, USA with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as a feedstock. Last summer, 8 airlines operating at Los Angeles International (LAX) signed a deal with Rentech for the supply of a renewable synthetic diesel fuel for use in ground service equipment.

January 2010: Hawaiian Airlines (HWI) flew 686.2 million (RPM)s traffic in December, up +5.1% year-over-year. Capacity dipped -0.1% to 820.9 million (ASM)s and load factor rose +4.1 points to 83.6% LF.

(HWI) announced a tentative 5-year labor agreement with 418 pilots (FC) represented by the Air Line Pilots Association (ALPA). (HWI) said the deal provides both increased compensation for the pilots (FC) and operational improvements for (HWI).

(HWI) pilots (FC) represented by the Air Line Pilots Association ratified the tentative contract with (HWI). According to (ALPA), 90% of pilots (FC) eligible to vote cast ballots, with 83% voting in favor of the agreement. (HWI) Master Executive Council Chairman, Eric Sampson said the deal "rewards our pilots (FC) for their repeated sacrifices over the years on behalf of Hawaiian (HWI), and positions our company for future success well into this new decade."

The union said the 68-month agreement "will give pilots (FC) pay increases of between +4% and +6% immediately, and total increases of between +15% and +22% over the term of the contract." It also boosts the company contribution to the pilots (FC)'s retirement plans, while providing the airline with "more flexibility in pilot training and scheduling." The accord allows (HWI) "to acquire or code share with a turboprop feeder airline, provided the feeder carrier does not compete with (HWI)'s existing inter-island turbojet operation."

(AAR) (AFD)/(ALC) signed a 2-year deal with Hawaiian Airlines (HWI) to provide 10-year checks on 12 (HWI) 717s. The work will be performed at (AAR) (AFD)/(ALC)'s Miami facility and will include repainting on certain airplanes.

February 2010: Hawaiian Airlines (HWI) flew 661.6 million (RPM)s traffic in January, up +2.2% year-over-year, while capacity was cut -2.7% to 804.9 million (ASM)s. Load factor rose +3.9 points to 82.2% LF.

(HWI) concluded what President & (CEO) Mark Dunkerley called a "remarkable" 2009 with a +$116.7 million profit, a more-than-fourfold improvement from the +$28.6 million surplus posted in 2008. "With lower prices and the hard work of everyone we overcame the effects of an economic recession and the attentions of a new entrant on our inter-island routes to post our company's best-ever results," Dunkerley said. "Much work needs to be done to ensure that our 2009 results become the norm throughout the business cycle. This will remain management's focus."

In October, Mesa Air Group subsidiary go! and Mokulele Airlines entered into a joint venture to collaborate on inter-island service.

(HWI)'s full-year revenue slipped -2.3% to $1.18 billion and expenses were cut -3.9% to $1.08 billion. Operating income rose +17% to +$107.5 million from +$91.9 million in 2008. (HWI) realized $40 million in tax benefits last year that helped boost the bottom line, as well as a -73.4% reduction in non-operating costs to $10.3 million related primarily to a reduction in fuel hedge expense.

Non-operating income of +$2.3 million related to hedges compared to a -$16.1 million loss on a similar basis in 2008.

(HWI) flew 8.15 billion (RPM)s traffic last year, up +3.7%, against a +2.2% increase in capacity to 9.72 billion (ASM)s. Load factor rose +1.3 points to 83.9% LF. Operating (RASM) fell -4.4% to 12.18 cents, while unit cost dropped -5.9% to 11.07 cents.

(HWI) posted a $35 million profit in the 4th quarter, reversed from a -$11.9 million deficit in the 3 months ended December 31, 2008. Operating profit declined -57.7% year-over-year to +$16.1 million on a -1.2% fall in revenue to $297 million.

March 2010: Hawaiian Airlines (HWI) added to its firm long-haul Airbus (EDS) order, signing up for a 7th A330-200 scheduled for delivery in 2011. (HWI) placed an order for 6 A330-200s and 6 A350-800s, plus purchase rights for 6 of each type, 2 years ago. It also plans to lease +3 additional A330s.

April 2010: Hawaiian Airlines (HWI) and the International Association of Machinists and Aerospace Workers announced that union members approved a new 4-year contract negotiated last month. The new contract features increased compensation for 600 of (HWI)'s employees working as airplane inspectors, mechanics (MT), line service personnel, cleaners and contract service personnel. The airline previously reached agreements with its pilots (FC), flight attendants (CA), clerical workers and dispatchers.

(HWI) took delivery of its 1st A330-200, the 1st of 10 slated to join its fleet to replace 767s on flights between Hawaii and the continental USA. The airplane is leased to the carrier through (CIT) Aerospace (TCI). (HWI) will take delivery of +2 more leased A330-200s this year and begin taking delivery next year of 7 of the type it has on firm order. The airplanes will seat 294 passengers in a 2-class configuration.

1st A330-243 (1104, N380HA), (CIT) Group (TCI) leased.

May 2010: Hawaiian Airlines (HWI) flew 667.7 million (RPM)s traffic in April, down -0.04% from the year-ago month. Capacity was cut -1.1% to 781.96 million (ASM)s. Load factor rose +1 point to 85.4% LF.

(HWI) said it completed the winglet program on its 8 767-300ERs. President & (CEO) Mark Dunkerley said addition of winglets to the 767s coupled with orders for up to 15 A330s and 12 A350s would "deliver significant long-term financial and environmental benefits through lower fuel consumption and reduced emissions." According to (HWI), the winglets have enabled its 767s to carry 10,000 to 15,000 lbs in extra payload on some flights.

James Davis was appointed VP Customer Services.

A330-243 (1114, N381HA), (AWAS) (AWW) leased.

June 2010: Hawaiian Airlines (HWI) President & (CEO) Mark Dunkerley signed a new 3-year contract to extend his time leading the carrier.

(HWI) on October 30 plans to launch its 1st nonstop service to Las Vegas. The 2x-weekly service, which will originate in Maui, is part of a network expansion based on the addition of A330-200s to the (HWI)’s fleet. “We’ve known for a long time how popular Las Vegas is with Maui residents, so we’re pleased to offer this new flight to address that demand,” said Executive VP & (CFO) Peter Ingram. “At the same time, we believe the convenience of this new nonstop service will boost visitor traffic to Maui, as Las Vegas is home to so many people with strong ties to the islands, as well as a busy hub for flight connections on other carriers.”

July 2010: Hawaiian Airlines (HWI) flew 746.6 million (RPM)s traffic in June, up +6.4% on the year-ago month. Capacity climbed +5.3% to 869.1 million (ASM)s and load factor increased +0.9 point to 85.9% LF.

(HWI)’s parent, Hawaiian Holdings recorded a sharp drop in 2nd quarter net income, though it still remained in the black with a +$9 million profit that compared to the year-ago period's +$27.5 million in net income. (CEO) Mark Dunkerley said the results were “in line” with what (HWI) had expected. “The second quarter was an eventful period as we successfully introduced our 1st and 2nd A330s into revenue service in June," he said.

Operating revenue rose +8.2% to $315.89 million against a +12.1% increase in expenses to $291.9 million. Operating profit was down -24.3% to +$24 million from +$31.7 million in the 2nd quarter 2009. It lost -$4.9 million on fuel hedges.

(HWI) flew 2.11 billion (RPM)s traffic in the quarter, a +2.7% rise year-over-year, while capacity lifted +1.1% to 2.46 billion (ASM)s. Load factor increased +1.4 points to 85.6% LF. Operating unit revenue was up +7% to 12.83 cents and operating (CASM) increased +10.9% to 11.85 cents.

(HWI) will launch 4x-weekly, Honolulu - Seoul Incheon service in January 2011, pending approval from South Korea's Ministry of Land, Transport & Maritime Affairs. (HWI) expects to increase service on the route "as its long-range fleet expansion progresses." The 4 weekly flights will be operated with 767-300ERs, and (HWI) plans to increase frequency later in 2011. The number of Koreans visiting Hawaii is up significantly since the USA implemented a visa waiver program 2 years ago. (HWI) is also expanding its code share relationship with Korean Air (KAL).

This will be the 2nd stage of (HWI)’s expansion to Asia, as the USA Transportation Department has granted tentative approval for a flight from Honolulu to Tokyo Haneda Airport.

August 2010: Hawaiian Airlines (HWI) grew its capacity more than most of its North American peers in July, but (HWI) still managed to improve its load factor for the month. System wide traffic increased +11.3% (RPM) year-on-year, versus a +9.4% (ASM) capacity rise. This resulted in load factor rising +1.5 points to 86.7% LF. For the year through the end of July, traffic rose +2.1% on a +0.3% capacity hike, with load factor growing +1.6 points to 85% LF.

September 2010: August traffic at Hawaiian Airlines (HWI) surged +14.3%, for 88% LF, as capacity (ASM) increases failed to keep pace with (RPM) traffic growth. For the year to date, (HWI)'s traffic is up +3.7%, compared to a +1.7% increase in capacity.

(HWI) will launch 4x-weekly, Honolulu - Seoul Incheon service on January 12.

Delta Air Lines (DAL) said it will begin code sharing with Hawaiian Airlines (HWI) on September 15, placing the (DAL) code on (HWI) flights between Honolulu and Kahului, Lihue, Kona, and Hila, as well as between Kona and Kahului. The new agreement expands on an earlier frequent-flier agreement between the 2 carriers.

(DAL)’s Managing Director Global Alliances, Charles Pappas said, "While (DAL) is already a leader in service to Hawaii, with flights between the islands and 9 cities in the USA and Japan, this new code share agreement with (HWI) will allow customers to connect beyond our main Hawaiian gateways to 5 popular vacation points." (HWI) provides service to 10 USA cities as well as the Philippines, Australia, American Samoa, Tahiti and (in the coming months) Japan and South Korea.

AJ Walter (AJW) Leasing announced it will provide Delta (DAL) TechOps with a $10 million spare parts package to support A330 operators including Hawaiian Airlines (HWI).

October 2010: Hawaiian Airlines (HWI) operated 701.1 million (RPM)s traffic in September, up +8.3% on the year-ago month. Capacity climbed +5.9% to 818.2 million (ASM)s and load factor increased +1.9 points to 85.7% LF.

Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported its 10th consecutive quarterly profit, posting earnings of +$30.5 million for the 3rd quarter ended September 30, down -0.7% compared to earnings of +$30.7 million in the year-ago period. The company noted that 2010 3rd-quarter results were boosted by a lower tax rate and related accrued interest that raised income by +$7.1 million. In the year-ago period, the company had an income tax benefit of $13.7 million.

Revenue rose +15.2% year-over-year to $352 million, while expenses climbed +10.9% to $312.8 million and operating profit soared +65.8% to $39.3 million from $23.7 million in the 2009 period.

“A tenth consecutive quarter of profitability has further strengthened Hawaiian Airlines (HWI),” (CEO), Mark Dunkerley said. “We’ve taken delivery of new airplanes and are on the doorstep of expansion into Asia with new services to Japan and Korea slated to begin in the next few months,” he added, noting (HWI) is confident it is “well positioned to take the next steps in our strategic development.”

Traffic rose +11.4% to 2.4 billion (RPM)s on a +8.9% increase in capacity to 2.7 billion (ASM)s, producing a load factor of 86.9% LF, up +2 points. Yield rose +3.6% to 13.10 cents as (RASM) heightened +5.7% to 12.89 cents and (CASM) increased +2% to 11.46 cents. (CASM) ex-fuel was 8.37 cents, down -1.6%.

(HWI) launched 2x-weekly, Maui – Las Vegas service aboard a 264-seat 767-300.

November 2010: Hawaiian Airlines (HWI) operated 738.2 million (RPM)s traffic in October, up +8.5% year-over-year, on a +6% increase in capacity to 845.7 million (ASM)s. Load factor grew +2 points to 87.3% LF.

(HWI) will increase 4x-weekly, Sydney - Honolulu service to daily, between April 6 to August 1 and 5x-weekly from August 2.

(HWI) will increase frequencies on seasonal service this summer to include daily, Maui - Oakland service between December 13 to January 10; daily, Honolulu - Los Angeles service between December 15 to 22, 25 to 29 and January 1 to 5; and weekly, Honolulu - Pago Pago service between December 14 to January 4. (HWI) will operate the seasonal services with a 264-seat 767-300s. (HWI) launched daily Honolulu - Tokyo Haneda service, which it initially will service using 264-seat 767-300ERs, but intends to serve the route with 294-seat A330-200s “at a later date.”

(HWI) tapped Judith McCoy as its new Station Manager in Pago Pago, American Samoa.

Hawaiian Airlines (HWI) announced it has placed a firm order for an additional 6 A330-200s powered by Rolls-Royce (RRC) (Trent 700) engines. The airplanes will join (HWI)’s fleet of 3 A330s and an existing backlog of another 7 A330-200s and 6 A350 XWBs. Value of the order was not released, however, Airbus (EDS) said the list price for an A330-200 is $191.4 million.

(HWI) President & (CEO) Mark Dunkerley said, "These additional wide body A330s will give us more flexibility to pursue domestic and international expansion opportunities, replace our existing 767 fleet and improve our ability to compete profitably in the coming years."

December 2010: Hawaiian Airlines (HWI) said paying passengers flew 718 million miles in November, up from 644 million a year earlier. The +11.5% (RPM) traffic gain outstripped a +10.5% capacity boost, so occupancy increased by about +1% point to 85.2% LF.

All Nippon Airways (ANA) and Hawaiian Airlines (HWI) have announced
a new cargo code share, which represents the 1st fruits of a broader
partnership agreement the carriers signed in October. Under the latest deal, (ANA) will place its code on (HWI)’s Tokyo Haneda - Honolulu flight, operated with a 767-300ER. The code share also covers cargo from beyond markets in Asia and the USA. The arrangement began December 22. The two airlines signed a letter of agreement in October, committing to explore passenger and cargo code sharing and frequent flier links. They plan to cooperate further “as their alliance develops.” (ANA) began its Haneda - Honolulu service on October 31, and (HWI) began flying this route on November 17.

January 2011: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported 4th-quarter net income of +$70.6 million, doubling its income from a +$35 million profit in the year-ago period. (HWI) said that results include non-recurring beneficial tax adjustments, without which adjusted net income reflecting economic fuel expense for the 3 months was +$11.3 million, versus +$10.5 million in the 2009 4th quarter.

Revenue rose +15.7% to $343.8 million, while expenses increased +14.4% to $321.4 million producing an operating profit of +$22.4 million, up +39.2% over +$16.1 million in the prior-year quarter.
“These 4th-quarter results round out another good year for Hawaiian Airlines (HWI),” (CEO) Mark Dunkerley said. “In 2010, our strong financial performance enabled us to start service on 2 new international routes, take delivery of the 1st 3 of 16 new Airbus wide body airplanes and replace our expiring credit facilities on favorable terms.”

Total traffic for the quarter rose +13.2% to 2.28 billion (RPM)s on a +11.7% increase in capacity to 2.7 billion (ASM)s, producing a load factor of 85.6% LF, up +1.2 points. Scheduled yield lifted +3.2% to 13.37 cents as total (RASM) rose +3.6% to 12.92 cents and (CASM) rose +2.5% to 12.08 cents. (CASM) ex-fuel decreased -1.4% compared to the year-ago period to 8.71 cents.

For the 2010 full year, (HWI) reported net income of +$110.3 million, reduced -5.5% from +$116.7 million in the year-ago period. On an adjusted basis, reflecting economic fuel expense and non-recurring items, 2010 net income was +$45.4 million, down -30% from +$64.8 million in 2009. Annual revenue rose +10.7% to $1.31 billion, while operating expenses rose +13.3% to $1.22 billion. Operating profit declined -15.1% to +$91.3 million from +$107.5 million.

Dunkerley said that at the start of 2011, the carrier is “well positioned to continue to grow into the rapidly developing travel market in Asia.”

(HWI) added a 3rd Asian country to its route map with its inaugural flight to Incheon International Airport near Seoul, South Korea. "This is a tremendous expansion in terms of our international footprint," said (CEO) Mark Dunkerley. (HWI) is planning additional expansion into Asia, but new route announcements are still "some months away." (HWI) launched 4x-weekly, 767-300ER Honolulu - Seoul Incheon service. (HWI) plans to introduce its larger 294-seat A330-200 onto the route "at a later date," it said.

(HWI), on a profit streak since the demise of its rivals Aloha (ALO) and (ATA) (AAT), recently began service to Tokyo Haneda, not to mention Manila in 2008. The number of Koreans visiting Hawaii skyrocketed last year following a USA move to stop requiring visas. Korean Air (KAL) also flies from Seoul to Honolulu, carrying lots of connecting traffic from Japan and China.

(HWI) has won the 2010 "Arrival Performance among Regional North American Airlines" award presented by http://www.FlightStats.com. (HWI) achieved a 2010 on-time performance record of 92.01%. The average on-time performance in 2010 was 79.48% for this category which is comprised of airlines based in North America with service concentrated in certain regions, states and provinces in North America and operating at least 20,000 scheduled flights annually. This is the 2nd year in a row (HWI) has won in this category.

In November, (HWI) took delivery of its 3rd A330-200 and increased its firm commitment for additional A330s from 10 to 16, with the additional 6 airplanes to be delivered between 2012 and 2015. The airplanes will join (HWI)’s fleet of 3 A330s and an existing backlog of another 7 A330-200s and 6 A350 XWBs.

February 2011: Hawaiian Airlines (HWI) operated 789.9 million (RPM)s traffic in January, up +19.4% on the year-ago month. Capacity climbed +19.2% to 959.2 million (ASM)s and load factor increased +0.2 point to 82.4% LF.

(HWI) says it will continue its growth in Asia with a daily direct flight between Honolulu and Osaka, Japan, beginning July 12. "We cannot expand in Asia successfully without having a strong focus in Japan," said (CEO) Mark Dunkerley in announcing the latest expansion. In recent months, (HWI) has added routes to Tokyo Haneda and Seoul Incheon, and occupancy on both routes has exceeded expectations, with about 80% of seats filled, according to Dunkerley.

Susan Donofrio, a former Cathay Pacific Airways (CAT) financial analyst, has been appointed Senior Director Investor Relations (IR).

(HWI) may hire around 6 flight crew (FC) in the next 3 months. (HWI) is not accepting new flight crew (FC) applications and is pulling from applicants already on file. (HWI) received its 1st A330 with routes to be determined.

March 2011: Hawaiian Airlines (HWI) carried >665,000 passengers in February, a +6.2% increase from year-earlier levels. February's load factor climbed +2.7 points to 85% LF.

(HWI) and Korean Air (KAL) formed a partnership to allow each carrier’s frequent flier members earn and redeem mileage credits on either carrier. The 2 airlines operate code share flights, including on Seoul Incheon - Honolulu service, and "plan to continue expanding" the code share relationship, (HWI) said.

April 2011: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported net income of +$855,000 in the 3 months ended March 31, an almost fourfold improvement over a profit of +$216,000 in the year-ago period as $8.4 million in gains on fuel derivative contracts offset a +56% rise in fuel costs between the 2 quarters.

(HWI) President & (CEO) Mark Dunkerley said, “In the 1st quarter, (HWI) did a good job of mitigating the effects of the rising cost of fuel and the tragedy in Japan. Fuel prices have climbed further since then, creating a substantial challenge for all airlines, including (HWI).” Revenue rose +22.5% to $365.6 million, while expenses increased +26.6% to $370.6 million, producing an operating loss of -$4.9 million, compared to operating income of +$5.6 million in the 1st quarter of 2010.

Scheduled traffic for the quarter rose +22% to 2.34 billion (RPM)s on a +21.1% increase in capacity to 2.78 billion (ASM)s, producing a load factor of 84.1% LF, up +0.5 point. Scheduled yield lifted +1.2% to 13.89 cents, while passenger (RASM) heightened +2% to 11.69 cents and (CASM) rose +4.5% to 13.31 cents. (CASM) ex-fuel was 9.38 cents, down -3.1%.

Looking forward, Dunkerley said, “We will continue our focus on controlling those costs that lie within our grasp. At the same time, we expect that strong demand in our core markets, the recovery we believe we will begin to see in Japan and the unequalled quality of service that our employees deliver will raise revenues and help offset some of the increase in fuel prices.”

June 2011: Hawaiian Airlines (HWI) is making an inter-island push with +3 additional 717s being leased from Boeing Capital (TBC) to support 20 additional flights in October.

(HWI) signed multi-year leases on the airplanes, which are due for delivery in September, October and November.

The additional 717s allow (HWI) to "expand its inter-island service between Honolulu and Kahului, Lihue, Hilo, and Kona during peak travel periods," while also improving "its industry-leading operational reliability."

Starting in October, (HWI) said it will add approximately +20 flights per day between Honolulu and its other airports in Hawaii.

To support the expanded inter-island service, (HWI) plans to hire 40 - 50 new flight attendants (CA), ground staff (MT) and pilots (FC).

In addition to the 3 new leases, (HWI) purchased its existing 15 717s "in a refinancing transaction that reduces its fleet costs over the long term", said (HWI).

July 2011: Hawaiian Airlines (HWI) gave an indication that the Japanese market may be on the path to recovery following March's devastating earthquake and tsunami. (HWI) raised capacity on its daily, Honolulu (HNL) - Tokyo Haneda (HND) service this month, switching from a 264-seat 767-300 to a newly delivered 294-seat A330-200.

"The return of healthy demand for our Tokyo service is allowing us to proceed with our plan to operate our largest airplane on the route," President & (CEO) Mark Dunkerley said. "After the drop in travel following the earthquake and tsunami, we are encouraged by the way the market has bounced back." (HWI) is the only USA airline operating the (HNL) - (HND) route.

October 2011: Hawaiian Airlines (HWI) parent, Hawaiian Holdings said its 3rd-quarter net income dipped -15.9% year-over-year to $25.6 million on a +29.5% lift in revenue to $455.9 million. It expects the 2011 2nd half to look “considerably better” as long as bookings hold and the price of oil does not rise by year end.

“The 3rd quarter marked a return to some better results for our business,” (HWI) President & (CEO) Mark Dunkerley said. “Particularly noteworthy has been the return of traffic on our services to Japan. Our results on these routes would qualify as good in any year, let alone the year in which an earthquake and tsunami took such a large human and economic toll.”

3rd-quarter expenses rose +26.3% to $394.9 million and operating income jumped +55.2% to $60.9 million from $39.3 million in the year-ago quarter. Traffic rose +13.7% to 2.69 billion (RPM)s on a +16% lift in capacity to 3.16 billion (ASM)s, producing a load factor of 85.2% LF, down -1.7 points. (RASM) rose +11.7% to 14.4 cents and (CASM) climbed +8.8% to 12.47 cents. (CASM) ex-fuel decreased -2.3% to 8.18 cents.

(HWI) said it has not seen a weakening in forward bookings "despite the drumbeat of depressing news about consumer confidence."

In its Airline Seat Capacity Outlook Report for the 4th quarter, the Hawaii Tourism Authority (HTA) projects a +1% year-over-year increase in total scheduled nonstop air seats operated to Hawaii. It forecasts international capacity to increase from Japan (+3.4%), Canada (+6.6%), Other Asia (+92.3%) and Oceania (+27.1%) to the state, offsetting expected reductions in service from the USA West (-0.8%) and USA East (-17.9%) major market areas.

1 A330-243 (1259, N384HA), ex-(F-WWYV), delivery.

November 2011: Hawaiian Airlines (HWI) and the Virgin Australia Group have reached a code share agreement under which Virgin Australia (VAZ) will place its code on (HWI) flights between Sydney and Honolulu, as well as on flights to Kahului, Maui; Lihue, Kauai; plus Hilo and Kona. (HWI) will launch daily, New York (JFK) - Honolulu A330-200 service on June 4.

(HWI) will add nonstop service between Honolulu to New York City next summer, the 1st nonstop link between the 2. Beginning June 5, 2012, the 1st flight will depart from Honolulu to New York’s John F Kennedy airport. The new service will add >107,000 new air seats per year.

“Hawaiian’s new service will generate an estimated $156 million in direct visitor spending and $17 million in state tax revenue annually for our tourism economy and will provide much desired direct air service to New York City,” said Mike McCartney, President & (CEO) of the Hawaii Tourism Authority.

Hawaiian Airlines (HWI) has grown its A330-200 order by 5 airplanes. (HWI) now has a commitment of 22 A330 airplanes, including 4 that are leased. (HWI) operates 5 A330-200s.

December 2011: Hawaiian Airlines (HWI) will increase 2x-daily, Honolulu - Los Angeles service to 3x-daily on June 7.

Rolls-Royce (RRC) has won a $350 million contract from Hawaiian Airlines (HWI) to deliver (Trent 700) engines to power 5 A330s. The A330s, to be delivered from 2013 to 2015, will add to (HWI)’s current fleet of 5 (Trent 700)-powered A330s and another 12 to be delivered.

In addition to the current fleet of A330s, (HWI) also operates 15 717s powered by the Rolls-Royce (RRC) (BR715) and has 6 A350s on order, which will be powered by (RRC) (Trent XWB-74) engines.

January 2012: Hawaiian Airlines (HWI) has set a new company record for total passengers carried in a single year—with 8,666,319 in 2011. Its passenger statistics for December and the 2011 4th quarter were also company records, (HWI) noted.

Traffic for the full-year 2011 increased +17% year-over-year to 10.15 billion (RPM)s on a +18.6% increase in capacity to 12.04 billion (ASM)s. Load factor dipped -1.2 points to 84.3% LF. 4th-quarter traffic rose +14.5% over the prior-year period to 2.61 billion (RPM)s on a +16.7% jump in capacity to 3.10 billion (ASM)s. Load factor dropped -1.6 points to 84% LF.

(HWI) named Stephen Simmons Managing Director Operations Planning & Scheduling, a new position created to “provide additional management support to (HWI)’s Flight Operations as (HWI) continues to implement its strategic growth plan,” (HWI) said. Simmons formerly served as an independent aviation consultant for domestic and international carriers, prior to which he worked at Northwest Airlines (NWA) for 16 years.

(HWI) continues to interview and hire 717/767 and A330 Flight Crew (FC) pilots from applicants already on file.

February 2012: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported 4th-quarter net income of +$20.9 million, down -70% from a +$70.6 million profit in the year-ago period.

4th-quarter revenue rose +26.2% to $434 million while expenses increased +24.3% to $399.5 million, producing an operating profit of +$34.5 million, up +54% from +$22.4 million in the prior-year quarter.

(CEO) Mark Dunkerley said that “good cost control and fare increases enabled us to offset the +35% increase in the price of fuel. It is particularly noteworthy that these results were posted during a period in which our operations grew rapidly.”

Total scheduled traffic for the quarter rose +14.5% to 2.6 billion (RPM)s on a +16.7% increase in capacity to 3.09 billion (ASM)s, producing a load factor of 84.1% LF, down -1.6 point. Yield lifted +11.9% to 14.96 cents and (CASM) rose +6.5% to 12.87 cents. (CASM) ex-fuel decreased -1.3% year-over-year to 8.60 cents.

For the full year 2011, Hawaiian (HWI) reported a net loss of -$2.6 million, reversed from a +$110.3 million net profit in 2010. On an adjusted basis, reflecting fuel expenses and the non-recurring lease termination charges of $70 million related to the purchase of 15 717-200 airplanes previously under lease, the company said its 2011 net income was +$43.2 million, down -4.8% compared to a +$45.4 million net profit on a similar basis in 2010. Annual revenue rose +26% to $1.65 billion, while operating expenses rose +33.8% to $1.63 billion. Operating profit declined -78% to +$20.3 million from +$91.3 million.

Hawaiian Airlines (HWI) will be flying to the USA East Coast in June when it launches long-haul flights from Honolulu to New York Kennedy (JFK) airport. (HWI) hinted at an East Coast launch in August last year as more A330s come on line. (HWI) is adding 4 of the wide body aircraft in 2012, to reach a year-end total of 9.

Tied to (HWI)'s New York launch is a new partnership with JetBlue (JBL) to feed into the (JBL)'s USA East Coast network. (HWI)'s wish is to make the new partnership a full-blown code share. (HWI) (CEO) Mark Dunkerley recently cited a degree of "ambiguity" in that regard, noting (HWI) was in discussions with employees to deepen the relationship with (JBL). "Everyone would like to see a code share: that is certainly our intention," he said.

Residents in the New York metropolitan area already have access to direct flights to Honolulu with United (UAL)-Continental (CAL), which serves the market from its Newark hub. (UAL)/(CAL) answered (HWI)'s arrival on the East Coast by unveiling plans to introduce new flights from its Washington Dulles hub to Honolulu in June.

Dunkerley seems unconcerned by (UAL)/(CAL)'s moves, stressing that (HWI)'s connecting pattern with (JBL) "does not actually connect to Washington DC, so it does not affect our forecast for the New York route."

Still, (HWI) faces questions on how it intends to compete on an historically tough route from Honolulu to (JFK). Noting that most of the major carriers serve Hawaii through one-stop connections via their hubs, Dunkerley assures (HWI) knows the traffic flows of the market. "One of the reasons why we didn't serve this market over the course of the last decade, and indeed why nobody did, is yields on the continental portion of a connecting itinerary to Hawaii were low," said Dunkerley. "As a consequence, the trip cost to Hawaii was unattractive." But now Dunkerley concluded that in a world "in which domestic continental yields are going up, the yields for Hawaii are firming. We now believe that the fare and cost environment is attractive."

In November 2011, (HWI) amended its agreement with Airbus (EDS) to purchase an additional 5 airplanes for delivery between 2013 and 2015. (HWI) now has firm airplane orders for 16 A330-200s for delivery between 2012 and 2015 and 6 A350XWB-800s for delivery beginning in 2017.

Dunkerley said that 2012 “will be a year in which our long-haul fleet transition to the A330 continues while we inaugurate new service to a number of new destinations at home and abroad.”

March 2012: Hawaiian Airlines (HWI) will increase service to Maui from Oakland (4x-weekly to daily ,July 1 - August 21) and San Jose (3x-weekly to 5x-weekly July 4 - August 19).

(HWI) has reached a tentative agreement with the Association of Flight Attendants (AFA) (CA) on a new contract to balance increased compensation with gains in productivity for the company.

The agreement, which is subject to a ratification vote by the company’s 1,280 flight attendants (CA), extends through 2016. The vote is expected to take place over the next several weeks.

(HWI) has earned the 1st-ever aviation based carbon credits, having reduced its CO2 emissions by nearly -22,000 metric tons over the past 6 years using an eco-friendly engine washing technology developed by Pratt & Whitney (PRW). “We are proud to be the 1st airline to receive verified carbon credits for reducing emissions,” said Mark Dunkerley, (HWI) President & (CEO). “Importantly, engine washing with EcoPower is helping us to mitigate rising fuel costs and significantly reduce (HWI)’s carbon footprint at the same time.”

A carbon credit is a verified means of measuring the reduction of industrial CO2 emissions from the environment, with one credit equal to the removal of one ton of CO2. (HWI)'s earning of carbon credits has been quantified and certified under the Verified Carbon Standard, an independent standard for the measurement and verification of greenhouse gas emissions and the creation of carbon credits.

(HWI)’s use of (PRW)’s EcoPower engine washing system has had the equivalent effect of taking 700 cars off the road annually, (HWI) said.

In addition, since launching the program in 2005, (HWI)’s commitment to the engine-washing system has saved the company >-2.5 million gallons of fuel, along with an estimated -26,000 gallons of water that would have been used with traditional washing methods.

The EcoPower system reduces fuel burn and eliminates 3 pounds of CO2 for every pound of fuel saved, while also reducing engine temperatures and normal wear. It uses pure, atomized water to wash aircraft engines in a closed-loop system that filters contaminants and reuses water, eliminating potential contaminant runoff. The system is more effective and faster than traditional engine washing processes.

(HWI) has added a 6th new A330-243 to its fleet, the 1st of 4 new A330s to join the fleet in the 1st half of this year. The 294-seat A330 began service as an (HWI) daily flight between Los Angeles, California, and Honolulu on March 13.

April 2012: Hawaiian Airlines (HWI) 1st-quarter consolidated net income leapt to +$7.26 million, up +$6.4 million from $855,000 from the year-ago quarter. Despite high fuel costs, (HWI) said long-haul demand has remained strong and results were “better than expected at the beginning of the year.”

“Adding a 6th A330 and inaugurating our Fukuoka - Honolulu service were the operational highlights of the quarter,” Dunkerley said. “Continuing the eventful period we are in, we have +3 more A330s arriving in the 2nd quarter, allowing us to start service to New York and boost capacity on a number of other routes.”

1st-quarter revenue rose +19.1% to $435.5 million, while expenses increased +14% to $422.6 million, on a +28.3% increase in fuel to $140.3 million (half of which was driven by growth), (CFO) Scott Topping said, and half driven by higher prices.

“2011 was an unusually difficult year,” Topping said. “We experienced a heavy concentration of heavy maintenance checks on the 717 fleet, significant engine overhaul costs, and the last round of material rate increases in certain power by the hour agreements. In contrast, 2012 maintenance expense generally reflects volume-related increases associated with our growth.”

Operating income for the quarter was +$12.9 million, reversed from a 1st-quarter 2011 operating loss of -$4.95 million. Unit costs were lower than expected, “mostly” due to the early A330 delivery in March, Dunkerley noted, which increased capacity. Airplane rent expenses fell -31.9% versus the year-ago period.

During the quarter, (HWI)’s cargo revenues “continued to gain strength,” Topping said, “reflecting superior cargo capabilities of the A330.”

Consolidated traffic jumped +12.4% to 2.63 billion (RPM)s on a +12.8% rise in capacity to 3.14 billion (ASM)s, producing a load factor of 83.8% LF, down -0.4 points. Yield improved +7%, while (CASM) heightened +1.1% to 13.45 cents. (CASM) ex-fuel fell -4.2% to 8.99 cents.

(HWI) flight attendants (CA) have ratified a tentative agreement on a new contract that (HWI) said balances increased compensation for (HWI)'s flight attendants (CA) with gains in productivity for the company. The new agreement, which covers (HWI)’s 1,350 flight attendants (CA) represented by the Association of Flight Attendants, extends through 2016.

(HWI) President & (CEO) Mark Dunkerley said the agreement “recognizes the excellent contributions of our flight attendants (CA) to our company’s success and provides cost stability as we add flights between our islands and outside of our state.”

May 2012: Hawaiian Airlines (HWI) will launch 3X-weekly, Honolulu - Sapporo service in November, pending Japan government approval.

USA carriers’ on-time performance (OTP) in March improved over the same period a year ago, but was worse than February’s report. The USA Department of Transportation’s (DOT) Bureau of Transportation Statistics (BTS) reported that the 15 carriers which log on-time performance data posted an overall (OTP) arrival rate of 82.2% in March, up from 79.2% in March 2011, but down from 86.2% in February.

In March, the carriers filing (OTP) data reported that 4.99% of their flights were delayed by aviation system delays, compared to 4.13% in February; 6.16% by late-arriving airplanes, compared to 4.33% in February; 4.9% by factors within the airline’s control, such as maintenance or crew problems, compared to 3.85% in February; 0.51% by extreme weather, compared to 0.35% in February; and 0.02% for security reasons, compared to 0.03% in February.

Hawaiian Airlines (HWI) led all carriers in March with an on-time arrival rate of 92.5%. AirTran Airways (CQT) followed by 90.9% and US Airways (AMW)/(USA) at 87.3%. The 3 worst performers were ExpressJet Airlines at 74.1%, Virgin America (VUS) at 74.9% and United Airlines (UAL) at 77.4%.

The (DOT) said airlines reported 3 tarmac delays of >3 hours on domestic flights and no tarmac delays of >4 hours on international flights in March. All the long domestic tarmac delays took place March 17 in St Louis, a day when severe storms hit the area. The affected carriers were American Airlines (AAL) (219 minutes), Shuttle America (187 minutes) and ExpressJet Airlines (183 minutes).

(HWI) hired Ron Anderson-Lehman as Senior VP & Chief Information Officer (CIO). He is former Senior VP & (CIO) of Continental Airlines (CAL). (HWI) has named Timothy Strauss to Managing Director Cargo. Strauss has worked with 13 international airlines in areas of management development for their cargo divisions.

June 2012: Hawaiian Airlines (HWI) will launch 3x-weekly, Honolulu - Brisbane (BNE) service from November 27, becoming the only USA carrier to operate service to (BNE). Aloha New York! On June 4th, (HWI) started service between Honolulu and New York (JFK) with Flight HAL50/51 operated by its newest A330-243 (N386HA "Heiheionakeiki (Orion)." The 5,000 mi/8,000 km route is scheduled for around 9 hrs 50 minutes - - SEE PHOTO - - "HWI-2012-06 - TO NY (JFK)."

July 2012: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a +$3.9 million net income for the 2nd quarter, a turnaround from the -$50 million net loss it incurred in the year-ago quarter, which was impacted by the $70 million purchase of 15 717-200s formerly on lease. Adjusted net income for the 3 months ended June 30 was +$11.7 million, versus the year-ago adjusted net income of +$0.1 million.

"We're pleased with the early results from the implementation of our strategy to grow into markets which have not been the traditional mainstay of our business,” (HWI) President & (CEO) Mark Dunkerley said. “At the same time, a small dip in the price of fuel and continuing healthy demand for the Hawaii vacation, helped boost the results from our traditional lines of business.”

During the quarter, (HWI) launched daily non-stop service from Honolulu to Fukuoka, Japan and New York (JFK). 2nd-quarter revenue jumped +22.7% to $484.6 million, on a -2.14% decrease in operating expenses to $455.2 million, though fuel costs increased +11.1% year-over-year. Operating income was +$29.3 million, reversed from a -$70.2 million loss in the 2nd quarter 2011.

Costs related to wages and benefits jumped +21.3% year-over-year to $96.69 million. (HWI) in April reached a new contract with its flight attendants (CA) providing increased compensation.

Consolidated traffic jumped +17% to 2.93 billion (RPM)s on a +16.8% rise in capacity to 3.49 billion (ASM)s, producing a load factor of 84% LF, up +0.1 point. Yield improved +6.1%, while (CASM) fell -16.3% to 13.05 cents. (CASM) ex-fuel fell -20.9% to 8.74 cents.

(HWI) will launch 3x-weekly, Honolulu - Auckland 767-300ER service on March 13.

August 2012: Hawaiian Airlines (HWI) and United Airlines (UAL) have both declared their opposition to an application by Delta Air Lines (DAL) to move its daily service from Detroit Metropolitan Wayne County (DTW) to Tokyo Haneda (HND) to Seattle Tacoma International (SEA) from September 30. Japanese and USA carriers only have been allowed slots for 4 daily services to and from Tokyo Haneda (HND) with the USA slots currently allocated to (DAL) for a daily Detroit and Los Angeles International (LAX) service, to Hawaiian for a daily Honolulu International (HNL) flight and to American Airlines (AAL) for a daily service to New York John F Kennedy International (JFK). (HWI) is making a case that it should be assigned (DAL)'s Detroit slot to be able to offer a 2nd daily flight from Honolulu International (HNL), while United (UAL) would like to launch a daily Haneda flight from San Francisco International (SFO).

September 2012: Hawaiian Airlines (HWI) has announced that it is proposing to use the 2nd slot at Tokyo Haneda (HND) it has applied for to launch a new daily service from Kona International (KOA) on Hawaii's Big Island to Haneda from March 2013.

(HWI) has agreed to acquire 2 ATR 42s for its new regional operation in Hawaii where it plans to operate up to 6 turboprops on routes to airports on the islands not currently served by Hawaiian (HWI) where its 717-200s would be too large and/or unable to land. It is not yet clear if (HWI) plans to acquire ATR 42-300s or ATR 42-500s.

November 2012: Hawaiian Airlines (HWI) introduced a new route to Japan on 1 November, and now serves Sapporo Chitose (CTS) from its Honolulu (HNL) base. 3x-weekly flights are offered on the 6,000 km route across the Pacific; all will be operated with 767-300ERs. Sapporo Chitose, which is (HWI)’s 4th Japanese destination (after Tokyo, Fukuoka, and Osaka), last month saw the launch of services from Bangkok by Thai Airways (TII).

(HWI) and Virgin America (VUS) have launched a code share agreement under which (HWI) has placed its code on (VUS) flights to Boston, Dallas, Fort Lauderdale, Washington DC; New York (JFK); Las Vegas; Los Angeles; Chicago; Philadelphia; Portland, Oregon; Seattle, and San Francisco.

(HWI) began flying to Brisbane with its 767-300ERs, becoming the only USA airline to serve Australia's 3rd largest airline market. (HWI) also flies to Sydney. In March, (HWI) will start flying to Auckland, New Zealand.

December 2012: With the welcome news that Taiwan nationals can now visit the USA without a visa, Hawaiian Airlines (HWI) will launch 3x-weekly, Taipei - Honolulu A330-200 service in July 2013. (HWI) has already been impressed by the surge in USA tourism that followed Korea's designation as a visa waver country, which has helped the success of its Seoul - Honolulu flights.

(HWI) celebrated the launch of scheduled fights between its Honolulu, (HNL) base and Brisbane (BNE), Australia. On November 28, Hawaii’s oldest airline connected the 3rd-largest Australian city with Honolulu offering 3x-weekly flights. Operated with 767-300ERs, (HWI) now offers 264 seats on each flight, allowing domestic connections and access to and from the USA mainland. This is (HWI)’s 2nd destination to Australia, along with a daily service to Sydney.

January 2013: Hawaiian Airlines (HWI) parent, Hawaiian Holdings posted 2012 net income of +$53.2 million, a marked improvement from the -$2.6 million net loss it recorded in 2011.

Its adjusted net income, reflecting fuel expenses and lease termination costs, was +$55.6 million, up +28.7% from the +$43.2 million adjusted net profit in 2011. Annual revenue rose +18.9% to $1.96 billion, while operating expenses increased +12.4% to $1.83 billion, including a -12.5% drop in airplane rent expenses. Operating profit improved by +$109 million year-over-year to +$129.4 million. “A good year of growth and improving financial performance was finished off by a disappointing breakeven result in the 4th quarter,” (HWI) President & (CEO) Mark Dunkerley said. “The sharp weakening of the yen, continued excess capacity in certain markets, and an accounting charge all worked to depress our earnings for the period despite many other things going right for the business.”

In the 4th quarter, (HWI) reported a net loss of -$3.4 million versus the +$20.9 million it earned in the year-ago quarter. Revenue rose +13.6% to $493 million, while operating profit fell -64.5% to +$12.2 million. Expenses for the quarter rose +20.3% to $480.7 million. It partly attributed the 4th-quarter results to “an out-of-period frequent flyer adjustment related to timing of revenue recognized for mileage credits sold to participating companies in previous years,” which it said affected pre-tax income by $7.3 million.

“Looking a little ahead into 2013, we see the difficult conditions persisting through the 1st quarter before becoming more benign for the balance of the year,” Dunkerley said. “Against this backdrop, we anticipate 2013 being another year of improving financial performance, predominantly after the 1st quarter.”

Total scheduled traffic for the full year rose +20.3% to 12.19 billion (RPM)s on a +21.9% increase in capacity to 14.66 billion (ASM)s, producing a load factor of 83.2% LF, down -1.1 points. Yield fell -0.8% to 14.49 cents, while (PRASM) decreased -2.2% to 12.05 cents.

The 2013 year will be another period of international growth for Hawaiian Airlines (HWI), as it continues to look to Pacific Rim nations for new opportunities. It will launch flights from Honolulu to Taiwan and New Zealand in 2013, and nobody would be surprised to see other new destinations also added. This follows the recent expansion of services to Australia, and new routes to Japanese cities and South Korea. All of this is part of (HWI)'s plan to reduce its reliance on the highly competitive routes from the Western USA to Hawaii. (HWI) will also be looking to increase its coverage of its local market, as it plans to launch a new regional turboprop subsidiary.

(HWI) pilots (FC) have ratified a tentative agreement on new contract terms covering the operation of A321neos. Hawaiian (HWI)’s pilots (FC) are represented by the Air Line Pilots Association (ALPA).

On January 7, (HWI) agreed to acquire 16 new A321neos, plus 9 options. The new acquisitions were contingent upon new agreements with its pilots (FC) and flight attendant (CA) unions.

According to a company statement, (HWI) is in talks with the Association of Flight Attendants about a similar agreement. The A321neo fleet expansion is expected to generate roughly +1,000 additional jobs for (HWI).

(HWI) said the 190-seat, A321neo aircraft will “complement (HWI)’s existing fleet of wide body, twin-aisle 767 and A330 airplanes used for long-haul flying between Hawaii and the USA West Coast.”

Terms of the agreement were not disclosed; however, the airplanes are valued at approximately $2.8 billion at list prices, if all options are exercised.

(HWI) appointed Doreen Lawrence as VP In-flight Services. Lawrence fills the position previously held by Louis Saint-Cyr, who was appointed VP Customer Services in May.

(HWI) has signed a memorandum of understanding (MOU) to acquire 16 new Airbus (EDS) A321neo airplanes, plus 9 options. The airplanes, which are scheduled for delivery between 2017 and 2020, will be used on long-haul flights between Hawaii and the USA West Coast.

Terms of the agreement were not disclosed; however, the airplanes are worth approximately $2.8 billion at list prices, if all options are exercised.

(HWI) President & (CEO) Mark Dunkerley said, “With its slightly smaller size, we’ll be able to open new markets that are not viable for wide body service, while also being able to augment service on existing routes to the West Coast of North America.”

The 190-seat, A321neo is in a 2-class configuration and has a range of 3,650 nautical miles.

The new acquisitions are contingent upon (HWI) signing new agreements with its pilots (FC) and flight attendant (CA) unions covering operation of the new airplane type. “If new agreements are reached, the fleet expansion is expected to generate roughly +1,000 additional jobs at (HWI),” it said.

(HWI) currently operates a fleet of 43 airplanes, comprising 25 A330-200s and 767-300ERs, plus 18 717-200 airplanes for "Neighbor Island" flights.

(HWI)’s existing orders include an additional 13 new A330s, for delivery between 2013 and 2015; and 6 A350 XWB-800s, with deliveries starting in 2017. The existing fleet of 16 767s will phase out over the next 10 years.


February 2013: Hawaiian Airlines ((IATA) Code: HA, based at Honolulu International (HNL)) (HWI) has announced that its regional partner Empire Airlines ((IATA) Code: EM, based at Coeur d'Alene Pappy Boyington (COE)) will operate the 2 ex-(CSA) Czech Airlines ((IATA) Code: OK, based at Prague Ruzyne (PRG)) ATR 42-500s it has recently acquired under the 'Ohana by Hawaiian brand on inter-island routes. (HWI) plans to use its new regional operation to enter the Lanai City (LNY) and Kaunakakai Molokai (MKK) markets from Honolulu competing against Island Air (USA) ((IATA) Code: WP, based at Honolulu International (HNL)) and Mokulele Airlines ((IATA) Code: MW, based at Kona International (KOA)) on these routes.

(HWI) will increase 4X-weekly, Oakland - Honolulu service to daily between June 15 to October 3. (HWI) will launch 3x-weekly, Honolulu - Sendai - Sapporo 767-300ER service on June 25.

Hawaiian Airlines (HWI) and its flight attendants (CA) have reached a tentative agreement on new contract terms covering the operation of A321neos. (HWI)’s 1,400 flight attendants (CA) are represented by the Association of Flight Attendants (AFA).

On January 7, (HWI) agreed to acquire 16 new A321neos, +9 options. The new acquisitions were contingent upon new agreements with its pilots (FC) and flight attendant (CA) unions.

(HWI)’s 600 pilots (FC), represented by the Air Line Pilots Association (ALPA), ratified a similar agreement January 28. The A321neo fleet expansion is expected to generate roughly +1,000 additional jobs for (HWI).

(HWI) said the 190-seat, A321neo airplanes will “complement (HWI)’s existing fleet of wide body, twin-aisle Boeing 767 and Airbus A330 airplanes used for long-haul flying between Hawaii and the USA West Coast.” The airplanes are valued at approximately $2.8 billion at list prices, if all options are exercised.

March 2013: Hawaiian Airlines (HWI) commenced services on the route from Honolulu (HNL) to Auckland (AKL) on March 13, breaking Air New Zealand (ANZ)’s monopoly. The latter, which offers 2x-weekly flights on the route, now faces 3x-weekly A330-200 competition from (HWI). Mark Dunkerley, (CEO) & President, of (HWI) commented, “Hawaii is a perfect midpoint destination for the kind of extended vacation that New Zealanders prefer, and we are ideally situated to offer dual-destination holidays and easy connections from Auckland to places like San Francisco, Las Vegas or New York City. And that works in reverse as well, making it easier than ever for USA residents to enjoy the wonders of New Zealand.”

Hawaiian Airlines (HWI) flight attendants (CA) have ratified new contract terms covering the 16 new A321neo airplanes (HWI) has on order. The airplanes are scheduled for delivery between 2017 and 2020. The order also includes 9 options.

(HWI)’s flight attendants (CA) are represented by the Association of Flight Attendants (AFA). “These new contract terms pave the way for future growth and job creation, while advancing our profession with additional contract improvements,” (AFA) Hawaiian Airlines (HWI) President, Sharon Soper said.

April 2013: Hawaiian Airlines (HWI) posted a net loss of -$17.1 million in the 1st quarter, reversed from a +$7.26 million net profit in the year-ago quarter.

1st-quarter revenue rose +12.7% year-over-year to $490.8 million, while expenses were up +19% to $502.7 million, producing an operating loss of -$11.9 million.

President & (CEO) Mark Dunkerley said the results were “disappointing but unsurprising. Our performance was undermined by an extraordinary increase in total industry capacity between Hawaii and the USA West Coast and in certain international markets during what is traditionally the weakest quarter of the year. However, good cost control and an improvement in our Neighbor Island segment helped offset some of the impact during the period.”

1st quarter scheduled traffic increased +21.9% year-over-year to 3.21 billion (RPM)s on a +26.1% rise in capacity to 3.96 billion (ASM)s, producing a load factor of 80.9% LF, down -2.9 points. Yield decreased -7.7% to 13.72 cents. (CASM) lowered -5.7% to 12.68 cents. (CASM) ex-fuel fell -7.9% to 8.28 cents.

Looking ahead, Dunkerley said, “Published schedules show capacity beginning to decline in the [2013] 2nd half, which should improve the operating environment.”

(HWI) plans to launch a code share with Taiwan's China Airlines (CHI), as it continues to expand its partner network in Asia. (HWI) will begin code sharing with (CHI) via Taipei, said Andrew Watterson, VP Planning & Revenue Management at (HWI). It begins 3x-weekly Honolulu - Taipei service on an A330-200 in July.

The code share will include flights between Taipei and Manila, replacing (HWI)'s nonstop service between Honolulu and Manila that ends on 1 August. (HWI) decided to exit the Honolulu - Manila market after irrational competitive pricing by Philippine Airlines (PAL) on the route, (CEO) Mark Dunkerley said.

The move continues Hawaiian's strategy to expand its network through code shares. In Asia - Pacific, it added partnerships with Air China (BEJ) and All Nippon Airways (ANA) in 2012 and has said that it wants to continue to expand that network. "Our new code share partnerships have also proven successful in giving us good connecting volumes," said Dunkerley in January. "We will continue to add new itineraries by combining our network with those of our partners to drive incremental business."

(HWI) named Michael Chock as its 1st Director of Alliances & Airline Partnerships in February.

China Airlines (CHI) announced that it would resume 2x-weekly service between Taipei and Honolulu on an A330-300 from 2 June, in February. The move came nearly 3 months after (HWI) announced that it would launch flights on the route.

Hawaiian Airlines plans to start non-stop service from Honolulu to China beginning next year and will eliminate service to Manila over the summer. (HWI) said that the flights from Honolulu to Beijing are expected to start on April 16, 2014, pending USA and Chinese regulatory approval. The new service is expected to run 3x- a week.

This would be (HWI)'s 10th new international destination since November 2010. The new service is expected to produce $81 million in annual visitor spending and $8.47 million in tax revenue for Hawaii, according to the Hawaii Tourism Authority.

(HWI) said it is discontinuing non-stop service to Manila due to under-performance. Chief Commercial Officer (CCO) Peter Ingram said that high fuel prices and low fares hurt the route. Flights to Manila, which began in April 2008, were running 4x-weekly. The final flight from Honolulu to Manila will be on July 31.

The company said that its reservations department will make arrangements with other airlines serving Manila to accommodate passengers with flights scheduled to Manila after August 1.

(HWI) is a subsidiary of Hawaiian Holdings Inc. Its new service between Honolulu and Taipei, Taiwan starts on July 9. It also offers nonstop service to Hawaii from 11 USA cities and has service from Japan, South Korea, the Philippines, Australia, New Zealand, American Samoa, and Tahiti. The company provides about 160 daily flights between the Hawaiian islands.

During the 1st quarter, (HWI) finalized an order for 16 firm A321neos, plus 9 options, which are scheduled for delivery between 2017 and 2020. The airplanes will be used on long-haul flights between Hawaii and the USA West Coast.

The agreement with Hawaiian (HWI) keeps Pratt & Whitney (PRW) as the largest engine provider for A321neo airplanes, with >3,500 orders currently in its backlog. (CFM) International also offers its (LEAP-1A) engines as an option for the A321neo.

The airplanes are scheduled for delivery beginning in 2017, after the A321neo enters service in 2016.

May 2013: Hawaiian Airlines (HWI) has appointed Daniel Lyons as Senior Director Performance Engineering & Operations Analytics. Lyons will be responsible for improving the efficiency of (HWI)’s Ground & Flight Operations.

Honolulu airport is being upgraded to accommodate more flights; the project is expected to be completed by 2017.

(HWI) has closed $444.54 million in financing to acquire 6 new A330-200 airplanes to be delivered over the next 18 months. (HWI) secured its 1st-ever offering of Enhanced Equipment Trust Certificates (EETC) securing fixed, low-interest financing for the airplanes.

Hawaiian (CFO) Scott Topping said, “The fixed interest rates on each of the Class A and Class B certificates are the lowest ever achieved by an airline via a public (EETC) offering without an insurance wrap. The offering opens a significant new source of future capital for (HWI) and reflects our financial strength, the confidence that capital market investors have in our strategy and the enduring value of our investment in the Airbus (EDS) airplanes.”

According to a company statement, the $444.54 million issuance is comprised of $328.26 million of Class A certificates, having an interest rate of 3.90% per annum and a final expected distribution date of January 15, 2026, and $116.28 million of Class B certificates, having an interest rate of 4.95% per annum and a final expected distribution date of January 15, 2022.

June 2013: Hawaiian Airlines (HWI) is still awaiting the rewards of network diversification it undertook a few years ago with the launch of several new Asian routes, along with flights to Auckland and Brisbane. The effort was designed to offset Hawaiian’s dependence on service to the USA mainland, which has become increasingly competitive during the last few years.

The rapid-fire route introductions have been plagued by currency weakness in Japan, retaliatory competitive capacity additions and Hawaiian (HWI)’s spooling up in understanding the distinctive nuances of each market. At the same time, overcapacity in its North American markets (which still comprise the majority of its revenues) continues to pressure (HWI)’s performance.

As those challenges continue to cast a spectre on (HWI)’s performance, (HWI) has reversed its fortunes within its inter-island network, which weakened during 2012 when (HWI) made a push from Maui and overestimated the capacity it needed to build a hub in Kahului.

Hawaiian Airlines (HWI) started flying on the 6,100 km route from its Honolulu (HNL) base to Sendai (SDJ) in Japan, making it its fifth destination in the country. Beginning on June 25, (HWI) offers 3x-weekly schedule on the route using 767-300s, and the flight is scheduled to return via Sapporo (CTS), which was previously served with non-stop flights. (HWI) also flies daily to Fukuoka, Osaka Kansai and Tokyo Haneda from Honolulu.

Hawaiian Airlines (HWI) has promoted Jan Gouveia to Managing Director Training & Development. She previously held the title of Project Manager Strategy & Transformation. (HWI) has appointed Jun Tsuruta Senior Director Maintenance Procurement, where he will oversee the sourcing, negotiation and purchasing of airplane inventory, supplies and services.

Delta (DAL) TechOps recently completed its 1st fuel tank inerting systems modification on a Hawaiian Airlines (HWI) A330-200 and is offering the modification to other A330-200 operators.

A330-243 (1422, N393HA "Lehuakona"), ex-(F-WWTX), delivery.

July 2013: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported a 2nd-quarter net income of +$11.3 million, nearly tripling the +$3.9 million net profit in the year-ago period.

Hawaiian Airlines (HWL) launched its 9th route since November 2010 on 9 July, as it commenced services on the 8,200 km route from its Honolulu (HNL) hub to Taipei Taoyuan (TPE). 3x-weekly frequencies are operated on the route using A330-200s in competition with China Airlines (CHI)’s 2x-weekly flights.

Hawaiian Airlines (HWI) has appointed Bryan Kapeckas as Director Revenue Analytics, with responsibility for supporting the company’s revenue management and commercial initiatives. He previously served as Manager, Alliance & Airline Partnerships at JetBlue Airways (JBL). (HWI) also appointed Donna Ishii as Director Corporate Reporting, and Keith Asato as Director (SEC) Reporting & (SOX) Compliance.

August 2013: Hawaiian Airlines (HWI) will increase 4x-weekly to daily on its Oakland - Honolulu service from January 5. (HWI) began nonstop service to Taiwan, the latest destination on (HWI)'s quickly expanding route map. (HWI) will go head-to-head on the route with Taiwan-based, China Airlines (CHI), which resumed its nonstop service between Honolulu and the Taiwanese capital last month. Prior to that, China Airlines (CHI) had suspended its Taipei - Hawaii service because of weak demand, according to "The Honolulu Star-Advertiser."

Now, however, airline and state tourism officials are optimistic, as the number of visitors arriving from Taiwan has been on the rebound.
Additionally, (HWI) says the new nonstop service capitalizes on the extension of the USA visa waiver program to include citizens of Taiwan. The program permits visa-free travel to the USA for eligible travelers visiting for 90 days or fewer for business or tourism.

"The demand for service to Hawaii from the Taiwan market has been growing and we are delighted to respond to the strong interest by delivering our new nonstop service to and from Taipei," Hawaiian (CEO) Mark Dunkerley is quoted as saying by the "Star-Advertiser." "The Hawaiian Islands are the ideal midpoint destination, perfectly situated to offer dual-destination trips with easy connections between Taipei and our 11 gateways in the USA."

Hawaii Governor, Neil Abercrombie was expected to be on the inaugural 10-hour flight to Taipei. (HWI) will fly nonstop between Honolulu and Taipei 3x-weekly on 294-seat A330-200 jets. Taiwan-bound flights will leave Honolulu each Sunday, Tuesday, and Thursday at 1:55 am local time, crossing the International Dateline and landing in Taipei at 6:55 am local time, the following morning. Return flights will leave Taipei at 8:55 pm and land in Hawaii at 1:10 pm. on the same day.

The route continues (HWI)' aggressive expansion on routes connecting Hawaii to Asian countries along the Pacific Rim. Taipei becomes Hawaiian's ninth new international route announced or inaugurated by (HWI) in <3 years.

(HWI)'s recent international ramp-up began in November 2010, when (HWI) started flying between Honolulu and Tokyo's Haneda Airport. (HWI) has since followed up with new service to the Seoul, Korea; in 2011, Brisbane, Australia in 2012; Auckland, New Zealand in 2013; and the Japanese destinations of Osaka (2011), Fukuoka (2012) and Sapporo (2012). Service to Beijing is scheduled to begin 3x weekly in April 2014.

(HWI) customers will soon be able to include iPad minis as part of their in-flight entertainment options. (HWI) will add the devices to its 767-300 flights beginning September 1.

The iPad minis will be complimentary in business (C) class on 767 flights. In coach (Y), the devices will come with a fee and will be available only on routes to North America, Brisbane (Australia) and Pago Pago (American Samoa). The cost will be $15 if reserved prior to boarding or $17 if purchased in flight, "subject to availability."

(HWI) said it has acquired 1,500 of the gadgets for 14 767 jets serving 14 routes. (HWI) currently operates its wide-body 767-300s between Honolulu and Oakland, San Jose, Sacramento, Seattle, and Phoenix in the USA; Fukuoka and Sendai, Japan; Seoul, South Korea; Brisbane, Australia; Papeete, Tahiti; and Pago Pago, American Samoa. Hawaiian (HWI) also uses 767s for its routes between Kahului, Maui, and the mainland USA cities of San Jose, Oakland, and Seattle.

"Hawaiian Airlines (HWI)'s signature on-board hospitality is already very popular with travelers, but we wanted to go even further to ensure our customers' travel experience is more enjoyable," Blaine Miyasato, (HWI)'s VP Product Development, said.

To provide the iPad minis, (HWI) has contracted Bluebox Avionics, which (HWI) describes as "a global provider of portable In-flight Entertainment (IFE) solutions to airlines." (HWI) said the iPad minis will replace all current portable entertainment systems on (HWI)'s 767 routes. They'll be programmed with 100 hours of the recent Hollywood releases and TV shows, as well as a variety of interactive games.

According to FAPA.aero, (HWI) hired 2 flight crew in class in January, and 4 in March. (HWI) continues to hire from small (FC) classes from existing applicants. 20 (FC) are needed at this time.

September 2013: Hawaiian Airlines (HWI) will install 1,500 Bluebox Avionics In-flight entertainment (IFE) solutions on Apple iPad minis on its Boeing 767s. (HWI) is the first Bluebox customer to use iPad minis.

October 2013: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), is reporting 3rd-quarter net income of +$40.6 million, down -10.7% from the year-ago period.

November 2013: Hawaiian Airlines (HWI) is seeking rights from the (DOT) for Kailua - Kona - Tokyo Haneda service, seeking slots given up by American Airlines (AAL) at yearend. (HWI) would offer daily A330 flights. (HWI) also begins 4x-weekly Kauai - Los Angeles and 3x-weekly Kona - Los Angeles from June 26 through September 19, 2014.

December 2013: Hawaiian Airlines (HWI) will add a 4th weekly flight to its Honolulu - Brisbane service on March 31, 2014.

Hawaiian Airlines (HWI) promoted Vicki Nakata to the newly created position of VP Loyalty & Travel Products. In this role, she is responsible for overseeing all elements of the "HawaiianMiles" program and the growing line-up of other Hawaiian Airlines (HWI) travel-related products such as vacation packages and premium seat offerings.

January 2014: Hawaiian Airlines (HWI) parent, Hawaiian Holdings posted a 2013 net income of +$51.9 million, down -2.6% from a net income of +$53.2 million for 2012. Full-year revenue rose +9.9% to $2.16 billion, while expenses increased +10.3% to $2.02 billion, producing an operating profit of +$133.7 million, up +3.4% from +$129.4 million in 2012.

4th-quarter net income was +$17 million, reversed from a -$3.4 million loss for the year-ago quarter. Revenue for the 4th quarter was up +7.9% to $531.9 million, while expenses increased +3.6% to $498 million, producing an operating income of +$33.8 million, nearly tripled from +$12.2 million in the 4th quarter of 2012.

(HWI) President & (CEO) Mark Dunkerley said the 4th-quarter results “continued the trend in improving financial performance after a difficult start to the year. Demand remains strong in our markets and we have strategies to mitigate cost pressures.”

Full-year total scheduled traffic rose +12% to 13.7 billion (RPM)s on a +14.3% rise in capacity to 16.8 billion (ASM)s, producing a load factor of 81.5% LF, down -1.7 point. Yield fell -1.9% to 14.22 cents.

(HWI) has appointed Robin Sparling as VP In-flight Services. Sparling is responsible for overseeing in-flight operations and training for Hawaiian Airlines (HWI)’s >1,500 flight attendants (CA) as well as on board customer service.

A330-243 (1496, N399HA), delivery, ex-(F-WWTP).

March 2014: For the 2nd consecutive month, after 15 months of reported declines, full-time equivalent (FTE) employment at USA scheduled passenger airlines has registered a monthly increase year-over-year.

For the 2nd consecutive month, after 15 months of reported declines, full-time equivalent (FTE) employment at USA scheduled passenger airlines has registered a monthly increase year-over-year.

In February, USA scheduled passenger airlines employed 381,985 full-time workers, up +0.4% year-over-year, according to figures from the USA Department of Transportation’s Bureau of Transportation Statistics (BTS).

It was the 3rd consecutive month in which full-time equivalent (FTE) jobs at USA scheduled passenger airlines increased year-over-year. The February total registers +1,571 more (FTE) jobs among USA scheduled passenger carriers than in February 2013.

Among the USA major/network carriers, year-over-year increases in February (FTE) jobs were seen at US Airways (AMW)/(USA) (up +3.6%), Alaska Airlines (ASA) (up +2.7%), American Airlines (AAL) (up +0.4%) and Delta Air Lines (DAL) (up +0.2%). United Airlines (UAL) reported losing -1.8% of its (FTE) positions year-over-year. Overall, the USA major/network carriers saw a +0.1% year-over-year increase in February (FTE) employees.

Hawaiian Airlines (HWI), a major carrier classified by (BTS) as an “other carrier” (airlines that operate within specific niche markets) reported a year-over-year February increase of +332 (FTE) positions, up +7.5%.

Overall, (FTE) positions at the major USA low-cost-carriers (LCCs) grew +0.7% year-over-year in February. Spirit Airlines (SPR) had the largest concentration of year-over-year growth, expanding its February (FTE) job count by +16.8%, to 3,534 (FTE) employees; Allegiant Air (WJE)’s monthly (FTE) job count grew as well, up +14.3% from February 2013, to 2,134 (FTE) employees. Increases also occurred at Virgin America (VUS) (up +6.7%) and JetBlue Airways (JBL) (up +4.9%). February (FTE) job declines were seen at Frontier Airlines (FRO) (down -7.4%) and Southwest Airlines (SWA) (down -1.7%).

Sun Country Airlines (SCA), a national carrier/(LCC) classified by (BTS) as an “other carrier,” registered a year-over-year February increase of +169 (FTE) positions, up +17.4%.

Ranked by (FTE) workforce, the top 10 passenger airlines for February were: United Airlines (UAL) (80,694 (FTE) employees), Delta Air Lines (DAL) (73,602), American Airlines (AAL) (59,699) (less US Airways (AMW)/(USA) - see later, Southwest (SWA) (45,091), US Airways (AMW)/(USA) (31,604), JetBlue Airways (JBL) (13,301), and Alaska Airlines (ASA) (10,192).

April 2014: Hawaiian Airlines (HWI) parent, Hawaiian Holdings incurred a 1st-quarter net loss of -$5.1 million, narrowed from a net deficit of -$17.2 million in the year-ago period.

(HWI) emphasized the improved performance and noted the company swung to an operating profit of +$10 million compared to an operating loss of -$11.9 million in the 2013 1st quarter. “Our 1st-quarter results were markedly improved in this seasonally weak period,” President & (CEO) Mark Dunkerley said. “Good cost control and strong performance from our domestic network helped offset the impact of unfavorable exchange rate changes which weighed on our international business.”

1st-quarter operating revenue rose +6.9% year-over-year to $524.9 million. The operating profit was achieved because expenses grew at a much slower rate, increasing +2.4% to $514.8 million.

(HWI)’s 1st-quarter traffic edged up +0.7% compared to the prior-year period to 3.23 billion (RPM)s on a +1.8% boost in capacity to 4.04 billion (ASM)s. Load factor was 80% LF, down -1 point. (RASM) increased +5% to 12.99 cents.

(HWI) took delivery of 2 Airbus A330s in the 1st quarter and plans to take delivery of +3 more A330s in 2014. It will retire 2 Boeing 767s this year.

Dunkerley noted the “the extraordinary story involving us” over the weekend in which a 16-year-old boy survived as a stowaway hiding in the landing gear of a (HWI) Boeing 767. “We are thankful to hear that the boy is well following this dangerous escapade,” he said.

Hawaiian Airlines (HWI) commenced its 1st service to China with the addition of 3x-weekly flights from Honolulu (HNL) to Beijing (PEK). The 8,145 km sector was inaugurated on April 16th and will be flown utilizing (HWI)’s 294-seat A330-200s. Competition on the new airport pair is provided by Air China (BEJ) with 3x-weekly operations.

(HWI), which this month launched 3x-weekly Airbus A330 service between Honolulu and Beijing, has signed a code share agreement with Air China (BEJ).

(HWI) said that the code share deal “leverages the reach of [the carriers’] respective hubs in Honolulu and Beijing to offer more options and a more streamlined experience for customers traveling to further destinations.” (HWI) first announced the Honolulu - Beijing route last May. Under the terms of the code share agreement, (HWI) will place its “HA” code on Air China (BEJ)-operated flights from Beijing to Shanghai, Hangzhou, Guangzhou, and Shenyang. Air China (BEJ) will place its “CA” code on Hawaiian-operated flights from Honolulu to Kahului, Lihu'e, Kona, and Hilo.

Hawaiian (HWI) President & (CEO) Mark Dunkerley said Hawaiian passengers traveling to Beijing will have “the ability to easily explore additional domestic destinations within China on a single ticket from Honolulu.” Air China (BEJ) (CEO), Song Zhiyong commented that “the code share partnership with Hawaiian Airlines (HWI) will further extend the networks of both companies.”

(HWI) added, “Future cooperation between both carriers is expected to include additional code share cities in both China and North America. Both Hawaiian Airlines (HWI) and Air China (BEJ) are also negotiating a reciprocal partnership that will allow their respective frequent flyer members to earn and redeem miles for travel on either carrier.”

Hawaiian Airlines (HWI) has promoted Alisa Onishi to the position of Director Brand Management. In this new role, she is responsible for overseeing Hawaiian Airlines (HWI)’s global brand strategy and visual identity.

A 16-year-old boy has apparently survived flying >5 hours as a stowaway in the landing gear of a Hawaiian Airlines (HWI) Boeing 767. (HWI) said the USA Federal Bureau of Investigation (FBI) “has confirmed that a 16-year-old male traveled from San Jose, California to Maui in the wheel well of [the 767]. (HWI) personnel in Maui noticed the individual on the ramp after the flight’s arrival and immediately notified airport security.”

An (FBI) spokesman in Hawaii told reporters the boy climbed over a fence at San Jose International Airport to gain access to the 767. According to the (FBI), the boy was unconscious for most of the flight, which went as high as 38,000 feet and lasted for >5 hours.

About an hour after the airplane landed at Kahului Airport in Maui, the stowaway regained consciousness and climbed down from the landing gear and began walking around the tarmac, according to the (FBI).
(HWI) said the boy was “exceptionally lucky to have survived.” After being questioned by the (FBI), he was reportedly turned over to Child Welfare services. (HWI) added, “Hawaiian (HWI) and its contractors responsible for handling our airplanes in San Jose are ready to assist various government agencies in their investigation of this incident.”

The (FAA) has alleged that Hawaiian Airlines (HWI) went 8 years without properly inspecting certain components of 1 of its Boeing 767-300s used for commercial flights. The (FAA) proposed a civil penalty of nearly $548,000. (HWI) has requested an informal conference with the (FAA).

May 2014: Hawaiian Airlines (HWI) has appointed Christopher Keen as Director Network Strategy. In this role, he is responsible for overseeing and developing (HWI)’s route network as it expands into new destinations.

Lufthansa Technik (DLH) (LTK) and (HWI) have signed a contract for engine washes on Airbus A330s in Los Angeles and San Francisco, California.

June 2014: Hawaiian Airlines (HWI) increased its seasonal offering with the launch of a new summer route from Kona, Hawaii (KOA) to Oakland, California (OAK) on June 13th. The 3,830 km sector will be served 4x-weekly until August 15th, utilizing (HWI)’s 259-seat 767-300s. Competition on (HWI)’s new airport pair is provided by Alaska Airlines (ASA), which operates 4x-weekly flights. Starting June 15th, (HWI) will commence a new service from Oakland and Lihue, which will be operated 3x-weekly.

Aviation Technical Services (ATS) has expanded its Airbus (EDS) service offerings with an A330 modification program for Hawaiian Airlines (HWI) as part of (HWI)’s extra comfort premium-economy (PY) seating. The interior passenger reconfiguration has been installed by (ATS) on 5 of (HWI)’s 12 airplanes to-date and is scheduled to be complete this summer.

July 2014: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported 2nd-quarter net income of +$27.3 million, more than doubling net income of +$11.3 million in the year-ago quarter.

(HWI) President & (CEO) Mark Dunkerley said, “Strong demand across our geographies, good macro-economic conditions, stable fuel prices and good cost control inside the business all played their part. Absent changes to the environment or competitor behavior, our prospects in the back half of the year look similar. As ever, we continue to build the business with new routes, this summer featuring our first flights from North America to Kaua‘i and the island of Hawai‘i, and a host of customer improvements including the roll out of our extra comfort economy section of our airplanes.”

2nd-quarter operating revenue was up +7.8% to $575.7 million, while expenses increased +5.6% to $524.2 million, producing an operating profit of +$51.6 million, up +38% year-over-year.

Scheduled traffic for the quarter was up a scant +0.4% to 3.42 billion (RPM)s on a +1.2% rise in capacity to 4.26 (ASM)s, producing a load factor of 79.6% LF, up +1.3 points from the year-ago quarter. Yield was 14.94 cents, up +5.7%.

On July 21st, (HWI) committed to purchase 6 Airbus A330-800neos, which were launched at this month’s Farnborough Airshow.

Hawaiian Airlines (HWI) has promoted Avi Mannis to Senior VP Marketing. In his new role, he will continue to oversee (HWI)’s Brand Management, Advertising, Promotions, Direct Marketing, Online Experience, Product Development, Consumer Affairs, and Reservations departments. (HWI) has appointed Brent Overbeek as VP Revenue Management & Network Planning. (HWI has promoted Linda Srabian to Managing Director Honolulu Hub. In this newly created position, Linda will lead and direct all airport Customer Service Operations in Honolulu, and will be developing long-term plans both on behalf of the airline as well as for all airport expansion projects.

Hawaiian Airlines (HWI) has signed a memorandum of understanding (MOU) with Airbus (EDS) for 6 A330-800neo airplanes, which was launched at this month’s Farnborough Airshow. The new commitment replaces a previous order for 6 A350 XWB-800s, which were due for delivery from 2017.

Terms of the agreement were not disclosed, but the airplanes have a total list-price value of approximately $2.9 billion, if all of the purchase rights are exercised.

Hawaiian Airline (HWI)’s existing orders include an additional 4 new A330-200s for delivery by 2015 and 16 narrow body A321neo airplanes, scheduled for delivery starting in 2017.

August 2014: Hawaiian Airlines (HWI) begins daily, San Francisco - Kahului Airbus A330-200 service on December 17, after operating 4x-weekly from November 20.

Hawaiian Airlines (HWI) has appointed Theo Panagiotoulias as Senior VP Global Sales & Alliances. (HWI) has promoted Jim Landers to Managing Director Maintenance. (HWI) has promoted Marc Sabaté to Director Support Services Procurement.

September 2014: Hawaiian Airlines (HWI) will become the 1st commercial airline to install Inmarsat’s SwiftBroadband for flight deck applications, including safety services on its Boeing 767-300s. (HWI) will use Inmarsat’s SwiftBroadband safety for (ACARS) data messages, live electronic flight bag (EFB) updates and airline operational communication (AOC) voice and data. Inmarsat and the (FAA) will collect data on the performance of the (FANS1)/A service at (HWI) which will contribute to the achievement of approvals for (FANS1)/A services over SwiftBroadband, which are expected by early 2016.

Hawaiian Airlines (HWI) has appointed Sean Menke as Executive VP & (COO), effective October 20.

November 2014: News Item A-1: Hawaiian Airlines (HWI) is to apply for Haneda rights if the Department of Transportation (DOT) reallocates the airport slot.

(HWI) has made clear that it will not sit on the sidelines while American Airlines (AAL) and Delta Air Lines (DAL) battle over access to Tokyo’s close-in Haneda Airport.

Hawaiian Airlines (HWI) expanded its offering to the USA Mainland on November 20th, when it commenced its second route to San Francisco, (SFO) from Kahului, Hawaii (OGG). The 3,763 km sector, which is already served by United Airlines (UAL)’s twice-daily flights, will be operated by (HWI)’s 294-seat A330-200s. Also worthy of note, this service will see a frequency increase to daily, starting December 17th. (HWI) is also flying to San Francisco from its Honolulu hub with daily operations.

News Item A-2: Hawaiian Airlines (HWI) has appointed Phil Moore to the position of VP Information Technology (IT). He is responsible for overseeing (HWI)’s information technology (IT) needs as its operations continue to expand with the addition of new airplanes and more employees. (HWI) has appointed Gai Tyrrell to Regional Director Australia & New Zealand, based in Sydney. In this newly created position, Tyrrell will be responsible for overseeing all commercial activities and product distribution in Hawaiian Airlines (HWI)’s fast-growing Australia and New Zealand markets.

December 2014: News Item A-1: Hawaiian Airlines (HWI) appointed Beau Tatsumura as Director Line Maintenance. He is responsible for maintaining the quality and performance of (HWI)’s current fleet of 48 Airbus (EDS) and Boeing (TBC) airplanes to ensure reliability and safety.

News Item A-2: Hawaiian Airlines (HWI) will revamp the interiors of its Boeing 717 airplanes in 2015, installing new, slimmer seats to the fleet and increasing each airplane’s total seat count to 128. “We are going to be replacing all the main [717] cabin fleet with more modern, lightweight, thinner seats,” said Peter Ingram, Executive VP & Chief Commercial Officer (CCO).

“That will give us more seats during peak demand periods… periods where we are spilling traffic today,” he added. Ingram said the project will be completed next year. Although the move will add more seats to the airplane, Ingram said the new seats’ slimmer design will allow (HWI) to “maintain the same amount of personal space” in the 717’s main cabin.

(HWI) has 18 717s, which it deploys on flights among the Hawaiian islands. Eleven of the 717s have 123 total seats, including 8F seats and 115Y economy seats. The remaining seven aircraft have a total of 118 seats, including 8F first class seats and 110Y economy seats.
When the project is completed, all of the 717s will have 8F first class seats and 120Y economy seats.

News Item A-3: Hawaiian Airlines (HWI) has finalized its order for 6 Airbus A330-800neo airplanes, firming up a memorandum of understanding (MOU) signed earlier this year. The order officially replaces (HWI)’s previous order for 6 A350-800s. (HWI) agreed to make the switch after Airbus (EDS) launched the A330neo at the Farnborough Airshow in July.

(HWI) President & (CEO) Mark Dunkerley said that the A330neo “meets all of our needs.” (HWI) has said it is interested in using the airplane on flights to Asia.

(HWI) already operates a fleet of 19 A330-200s and Dunkerley said the A330 will be (HWI)’s “wide body mainstay for far into the future.”

(HWI) Executive VP & (CCO) Peter Ingram said earlier this year that the A330-800neo will have less range and “not quite as much operating efficiency” as the A350-800, but added that “the tradeoff [is] lower capital costs” and fleet consistency with (HWI)’s other A330s.

1st deliveries of the Rolls-Royce (RRC) (Trent 7000)-powered A330neo are expected in 2017.

January 2015: News Item A-1: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported net income of +$68.9 million for 2014, up +32.9% from +$51.9 million in net income for 2013. According to (HWI), it was the best full-year performance since 2010, when the company posted a +$110.3 million net profit.

Full-year revenue for 2014 grew +7.4% year-over-year to $2.31 billion as expenses increased +2.4% to $2.07 billion, resulting in an operating profit of +$245.1 million, up +83.3% from +$133.7 million in 2013.

(HWI)’s scheduled traffic for 2014 grew +1.9% year-over-year to 13.9 billion (RPM)s; capacity increased +1.8% to 17.1 billion (ASM)s; passenger load factor for the year came to 81.5% LF, unchanged from 2013. Yield grew +3.4% to 14.70 cents.

(HWI) President & (CEO) Mark Dunkerley said, “2014 finished on a high note with the company posting much better results than a year ago. 2015 will be another year of improvements as long as demand, fuel and industry capacity in our marketplaces remain as forecast.”

Hawaiian (HWI)’s 2014 4th-quarter net income was +$11.1 million, falling -35% from +$17.1 million in the year-ago December quarter. 4th-quarter operating revenue was up +8.1% year-over-year to $574.8 million, as expenses eased 0.1% year-over-year to $497.5 million, resulting in operating income for the quarter of +$77.3 million, more than doubling the +$33.8 million (HWI) reported in the 4th quarter of 2013.

News Item A-2: Hawaiian Airlines (HWI) is renewing its push for permission to fly between Kona and Tokyo’s Haneda Airport, which would be an important step in the carrier’s move to increase long-haul services from Hawaiian airports other than its Honolulu hub.

(HWI) has filed an application with the Department of Transportation (DOT) for a daily, Kona - Haneda flight to begin in June. The opportunity for a scarce Haneda slot pair has been created by the (DOT)’s decision to review Delta (DAL)’s Seattle - Haneda route after (DAL) cut its year-round service to seasonal.

(HWI) has applied for Kona - Haneda flights on 2 previous occasions (in 2012 and 2013) but in both cases the available Haneda slots were awarded to other carriers. If the latest bid is successful, it will be (HWI)’s only international flight from an airport other than Honolulu. (HWI) launched its 1st long-haul routes from Kona (on the west side of the “Big Island” of Hawaii) when it began seasonal flights to Oakland and Los Angeles last summer. (HWI) has also been increasing long-haul flights from the USA West Coast to the islands of Kauai and Maui. Further opportunities for flights from the West Coast to secondary Hawaiian airports will be created, when (HWI) begins taking delivery of Airbus A321neos in 2017.

(HWI) intends to use Airbus A330-200s for the Kona - Haneda flights, which would be its 1st use of A330s at Kona. (HWI) believes there will be strong demand for this route, since Kona is already its 2nd most popular destination for Japanese travelers. >40% of (HWI)’s passengers visiting Kona from outside Hawaii are from Japan. Japan Airlines (JAL) previously flew between Tokyo and Kona, but discontinued the service in 2010.

The new Kona flight would be Hawaiian’s 5th Japanese route. It also has daily service to Tokyo Haneda and Osaka from Honolulu, and 3x-weekly flights from Honolulu to Sendai and Sapporo.

In its (DOT) application, (HWI) contends that its existing Honolulu - Haneda flight has been “by far the most, if not only, successful route” of the 4 Haneda slot pairs granted to USA carriers in 2010. (HWI) (CEO) Mark Dunkerley said the Kona flight would be the “highest and best use for the scarce Haneda slots that are at stake here.”

Later, The USA Department of Transportation (DOT) said it will start a route case proceeding for slots at Tokyo’s Haneda Airport, handing a victory to American Airlines (AAL) and Hawaiian Airlines (HWI).

The 2 carriers last year petitioned the (DOT) to reallocate a slot pair held by Delta Air Lines (DAL) for Seattle flights. (AAL) and (HWI) said (DAL) is “squandering” the slot, operating it a bare minimum to avoid triggering (DOT)’s 90-day dormancy rule, while (DAL) said it has reduced frequencies due to seasonality. The (DOT) last month invited comments on whether it should start a route case proceeding.

News Item A-3: Hawaiian Airlines (HWI) has promoted VP Controller Shannon Okinaka to Senior VP & Interim (CFO), filling a vacancy left by the departure of (CFO), Scott Topping. In her new role, Shannon will have oversight of all of (HWI)'s Financial Planning, Accounting, Treasury, and Compliance functions.

February 2015: News Item A-1: Hawaiian Airlines (HWI) hopes to step up the number of flights to New Zealand.

(HWI) has been flying to Auckland for just on 2 years and President & (CEO) Mark Dunkerley said it would weigh up increasing frequency from the current 3 return flights a week.

"There are no plans announced at this stage but over the longer term, it's certainly our aspiration. If the traffic continues to grow, I'm sure it won't take long before we're thinking about it," he said.

(HWI), which has undergone rapid growth around the Pacific Rim during the past 5 years, was making "good money" on the Auckland route.
Its presence here has helped about double passenger traffic between Auckland and Honolulu as Air New Zealand (ANZ) responded by rejigging its schedule, adding more seasonal capacity and dropping fares.

Fiji Airways (APC) also flies to Hawaii via Fiji. "We're very much in a growth and development phase (in New Zealand) and looking forward to marginal improvements. It's about the overall level of traffic and whether we can further stimulate it by adding more capacity to a route," said Dunkerley in Auckland.

Hawaiian's 294-seat Airbus A330s were up to 90% full on the Honolulu - Auckland route during the school holiday peaks, he said. New markets such as New Zealand are reviewed every 6 months.

(ANZ) is adding 3 new Airbus A330s to its fleet this year, replacing 2 Boeing 767s, giving it one extra wide body plane for its Pacific Rim network. "We've got some time to think about where we're going to deploy it. Right now we're in the thick of deciding what's going to work best," he said.

The outlook for fares would be determined by competition. (HWI) didn't promote itself as the lowest fare airline but pushed the value message, said Dunkerley. "When you're in a developing route, one of the things you look at is when the peaks are, and adjusting fares to meet times of high demand."

Most New Zealanders on (HWI) flew to the islands for a holiday rather than flying on to its growing number of mainland destinations.

News Item A-2: Hawaiian Airlines (HWI) named Mark Packard as Senior Director Treasury.

March 2015: Hawaiian Airlines (HWI) has completed a comprehensive retrofit on the first of its 18 Boeing 717 airplanes, featuring an island-inspired interior cabin redesign and new lightweight Main Cabin seating from Acro Aircraft Seating Ltd. (HWI)’s entire narrow body fleet, which operates >160 short-haul flights daily between the islands of the state, will be retrofitted to feature these new cabin enhancements by the end of 2015.

SEE PHOTO - - "HWI-2015-03 - 717 SEAT RETROFIT."

April 2015: Hawaiian Airlines (HWI) parent, Hawaiian Holdings posted a 1st-quarter net profit of +$25.9 million, reversed from a -$5.1 million net loss in the year-ago quarter.

Hawaiian (HWI) President & (CEO) Mark Dunkerley said, “Producing these record results for the seasonally weak 1st quarter demonstrates the growing strength of our business.” He credited low fuel prices and strong network demand for the results. He said those 2 factors combined “more than offset the impact of a strengthening USA dollar, declining fuel surcharges in some markets and an increase in industry capacity between North America and Hawaii.” Reflecting this performance, (HWI) announced a $100 million share repurchase program.

1st-quarter operating revenue was up +2.9% to $540.3 million, while expenses were down -8.9% to $469.2 million, producing operating income of $71.2 million, a >7 times increase from a $10 million operating profit in the 2014 March quarter.

(HWI)’s 1st-quarter traffic was up +3.6% to 3.35 billion (RPM)s on a +4.7% increase in capacity to 4.23 billion (ASM)s. Load factor was 79.1% LF, down -0.9 point. Yield was down -3.3% to 14.02 cents.

In the 1st quarter, (HWI) said it added 1 new Airbus A330-200 under lease financing. In March, it introduced the 1st of its 18 refurbished Boeing 717 airplanes with a comprehensive interior retrofit and a standard consistent layout of 128 seats. (HWI) said the refurbishment “will provide more seats for the peak demand period and eliminate operational complexity arising from different seat counts.” To date, 7 airplanes have completed the refurbishment program with all remaining 717s to be retrofitted by year end.

A330-243 (1615, N378HA "Kaukamaiama"), ex-(F-WWYN).

June 2015: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), appointed Shannon Okinaka as Executive VP & (CFO). She has been serving as Senior VP & interim (CFO) since January, succeeding (CFO), Scott Topping.

July 2015: News Item A-1: Hawaiian Airlines (HWI) reported 2nd-quarter net income of +$48.8 million, up +78.7% from a +$27 million profit in the year-ago period. (HWI) said the results were due to strong demand and low fuel prices.

“Strong demand across our network, coupled with low fuel prices more than compensated for the adverse impacts of the strengthening USA dollar, the significant reduction in most fuel surcharges and the high levels of industry capacity growth from North America. Our financial performance for the 2nd half of the year seems set to be a continuation of what we’ve seen so far in 2015,” Hawaiian President & (CEO) Mark Dunkerley said.

(HWI) posted a +$25.9 million net profit in the 1st quarter and +$68.9 million for 2014.

2nd-quarter revenue dipped -0.8% to $571.3 million, while expenses lowered -8.4% to $479.9 million, producing an operating profit of +$91.4 million, up +77.2% from a +$51.6 million operating profit in the prior-year quarter.

Total traffic rose +5.8% to 3.6 billion (RPM)s on +4.2% increase in capacity to 4.4 billon (ASM)s, producing a load factor of 80.8% LF, up +1.2 points.

Yield dipped -6.8% to 13.92 cents as (RASM) lowered -4.8% to 12.86 cents and (CASM) decreased -12.2% to 10.8 cents. (CASM) ex-fuel was 8.27 cents, up +0.7%.

(HWI) added an Airbus A330-200 and plans to add another next summer. It also purchased 3 ATR 72s in an all-cargo configuration to expand cargo services. It retired a leased 767-300 and sped up the retirement of more of the type

News Item A-2: Hawaiian Airlines (HWI) promoted Jim Landers to the position of VP Maintenance & Engineering. (HWI) appointed Eric Chen as Director International Pricing & Revenue Management. Eric is formerly from United Airlines (UAL), where he spent >8 years in Pricing, Inventory & Revenue Management.

(HWI) appointed Peter Clark as System Chief Pilot. Clark is responsible for the selection, training, management and supervision of all Hawaiian Airlines (HWI) pilots (FC), as well as consulting and coordinating with fleet captains on all technical, procedural and operational matters.

News Item A-3: Air Lease Corporation (ALE) signed a long-term agreement with (HWI) for 1 additional new Airbus A330-200. This aircraft is from (ALE)’s order book with Airbus and will deliver in the 2nd quarter of 2016.

News Item A-4: Hawaiian Holdings will acquire 3 ATR 72F turboprop aircraft in an all-cargo configuration to expand its inter-island shipping services. The new operation will launch in the 1st half of 2016, starting with flights between Honolulu and Kona International, Kahului Airport, and Hilo International, with connections from Hawaiian Airlines (HWI)’s mainland and international network. The ATR 72 fleet can carry up to 18,000 pounds of cargo and will be able to handle 5 88-by-108-inch aircraft pallets or up to 7 (LD3) containers, skidded cargo and oversized shipments.

August 2015: News Item A-1: "United (UAL) (CEO) Plays Fast and Loose With Facts in NY speech on Gulf Carriers" Karen Walker in (ATW) Editor's Blog, July 31, 2015.

United (UAL) (CEO) Jeff Smisek was practically punching the air in a hard-hitting speech in New York that focused mainly on the Gulf carriers, which he said represent the single biggest threat to USA aviation. But how correct were the many accusations he flung?

I was at the Wings Club lunch event, which was oversold despite it being the club’s 1st July event. I reported and posted the main content of Smisek’s speech, which you can read here (the 1st covers his Middle East points, while the 2nd covers the initial part of the speech, which focused on airlines behaving like businesses).

Let me say that Smisek’s remarks on USA airlines operating like businesses were bang on point. He never mentioned the (DOJ) and (DOT) investigations launched this summer into alleged collusion and price-gouging (both ridiculous in my mind), but this part of the speech was clearly aimed as much at Washington, as it was customers who buy overpriced sodas and hotdogs at a stadium and do not question why they should pay more for a stadium seat with a good view, but think it outrageous to pay for a better seat on an airliner or for a bag that costs more for the airline to transport.

So good for Smisek for saying it clear and loud: airlines are businesses and it’s time everyone recognized that.

Smisek then moved to the Gulf carriers and why (UAL), (DAL) and (AAL) are sticking to their guns in their campaign against the expansion of Emirates (EAD), Etihad (EHD) and Qatar (QTA) in the USA market through their countries’ "Open Skies" agreements.

A couple of things I’d like to note. Smisek delivered his speech away from the podium and without any notes. It was a very slick, engaging and dynamic speech with several soundbites that he knew would be attention-grabbers and raise a laugh, which they did. The Gulf carriers had been “caught with their subsidies down by their ankles;” “it’s good to be king” (a reference to Mohammed bin Rashid Al Maktoum’s power while flashing an organizational chart of (UAE) leadership that all pointed to Maktoum).

My feeling was that he has given close versions of this speech several times before to those people and organizations that the so-called "Partnership for Fair & Open Skies" has reached out to support their campaign.

There were many pilots (FC) in the room from several airlines, including (UAL), (AAL), (DAL) and (SWA). Pilot unions were among the 1st to support the campaign and Smisek several times referred to hundreds of USA job losses that would result from Gulf carrier expansion.

But what about some of the points he presented as facts? Below are my counterpoints to some of those “facts” and why this was in the end a clever speech, but not one that did the USA campaign much credit.

Smisek: “All 3 Gulf carriers are losing tons of money”

* Counterpoint: All the evidence with (EAD) is that it is very profitable; (ATW) figures show the Emirates Group posting a +$1.5 billion net profit for 2014. The report commissioned by (AAL), (DAL) and (UAL) made a significant error saying (EAD) passed on fuel hedge losses to the Dubai government and (EAD) documented the real facts in its report. (EHD) reported a 2014 net profit of +$73 million, its fourth consecutive year of profit.

Smisek: “Airline traffic should grow at about the same rate as Gross Domestic Profit (GDP); the Gulf carriers have been growing almost 4x- (GDP).”

* Counterpoint: My thanks to Airline/Aircraft Projects Inc consultant, Craig Jenks who was in the room and points out that in growth economies, such as those the Gulf carriers predominantly serve, airline traffic typically grows at about 2x- that of (GDP).

Smisek: “Lufthansa (DLH), Air France (AFA) - (KLM), and British Airways (BAB) have been decimated by the Gulf carriers.”

* Counterpoint: None of these airlines are decimated. All 3 carriers, as reported in the (ATW) 2015 World Airline Report, ranked in the top 10 of world carriers by passenger (RPK)s for 2014 and by operating revenue. (BAB) owner, the (IAG) was the world’s 6th most profitable, with a net profit of $1 billion. Lufthansa (DLH) and (AFA) - (KLM)’s financial problems are at least in part related to their internal struggles with unions to restructure costs and be competitive with Europe’s successful low cost carriers (LCC)s. Smisek did caveat this statement, saying (BAB) was “a little better protected” because of its Heathrow (LHR) hub. But that gives scant credit to (IAG)’s smart management and, as a side note, ignores the fact that (IAG) (CEO) Willie Walsh has made clear that the USA campaign (and adjacent campaigns in Europe) are protectionist. Qatar Airways (QTA) by the way, now owns a 10% stake in the (IAG) and is a Oneworld (ONW) Alliance member alongside (BAB) and (AAL).

Smisek: “These [Gulf] carriers would not exist without government subsidies.”

* Counterpoint: Many, if not all legacy European carriers and many Asian carriers, too, exist only because of the initial funding and support they received from their then-government owners. A similar sentence could be said of the 3 consolidated majors: none would exist today without Chapter 11 and the ability to wipe out debt through Chapter 11-protected restructuring. And, as the (ATW) 2015 World Airline Report shows, (EAD) and (EHD) are profitable.

Smisek: The Gulf carriers represent “the biggest single threat to our new-found prosperity.”

* Counterpoint: With thanks again to (AAP)’s Jenks, who calculates that without the Gulf carriers, (UAL) might perhaps run 3 extra India flights and 1 extra Frankfurt flight, due to alliance partner Lufthansa (DLH) being able to operate better (FRA) - India service; not a make-or-break for prosperity

Smisek: The USA/(UAE) "Open Skies" agreement gave (UAE) carriers “unfettered access to the USA market, while the USA got access to Dubai.”

* Counterpoint: The size of the country is not the point of "Open Skies" treaties. Indeed, the case could be made that it’s the smaller country that should fear being swamped by USA airline capacity. Regardless, the USA has "Open Skies" agreements with The Netherlands, Singapore, Panama and many other small-country states.

Smisek: (referring to a question about (EAD)’s Dubai - Milan - New York (JFK) 5th freedom route) “They are flouting their right to stop and refuel in Europe to add point-to-point business, even though today’s aircraft technology doesn’t need refueling to get from the Emirates to the USA”.

* Counterpoint: Commercial 5th freedom rights are in all "Open Skies" agreements and have nothing to do with “fuel stops.”

Smisek: [Etihad (EHD)’s] new "Residence-class suites with butler service" is something that “no one would pay for” and can only be offered by a subsidized airline.

* Counterpoint: (EHD)’s 1st Residence booking on its Abu Dhabi - (JFK) route, which starts December 1, sold within hours of becoming available.

Smisek: If airlines were governed by (WTO) rules, Gulf carrier activity “would be a clear case of dumping.”

Counterpoint: Irrelevant. Airlines are not under (WTO) jurisdiction and it’s the last thing USA airlines (and unions) want, because it would open them up to changing their current ownership/citizenship and cabotage protections.

Finally, back to that “good to be the king” remark. Actually, Maktoum is Vice President & Prime Minister of the (UAE) and is the Emir of Dubai.

A day later, 4 other USA airlines said they have formed a new coalition to oppose the campaign to fight expansion of the Gulf carriers in the USA. The (CEO)s of Atlas Air (TLS), FedEx (FED), Hawaiian Airlines (HWL), and JetBlue Airways (JBL) submitted a joint letter to the USA government saying that what (AAL), (DAL), and (UAL) are seeking would be a breach of the "Open Skies" treaties and are a political maneuver to reduce competition.

(FED) operates a freight hub in Dubai, (HWI) uses "Open Skies" rules to serve multiple destinations in Asia. JetBlue (JBL) partners with (EAD) and (EHD) to feed its domestic flights.

News Item A-2: Hawaiian Airlines (HWI) appointed Rock Tang as Senior Director Corporate Real Estate. Tang is responsible for managing Hawaiian Airlines’ corporate real estate interests, including its business relationships with domestic and international airports, lease negotiations, concessions, properties, projects & construction, facility planning & design. He was a former senior real estate manager at the Walgreen Company and regional director for (CVS) Caremark Corporation, and Longs Drug Stores California, Inc.

(HWI) appointed Sayle Hirashima as VP Controller. He is former (CFO) & VP at Koko‘oha Investments Inc/MidPac Petroleum, LLC, where he directed all accounting, financial and administrative matters.

September 2015: News Item A-1: Hawaiian Airlines (HWI) appointed Timothy Somerset to Director Facilities Management. He is responsible for managing (HWI)’s new projects and renovations, as well as the administration and maintenance of facilities company-wide. Somerset has >25 years of preconstruction and construction management expertise, having most recently served as Director at Cumming Corporation, Hawaii.

Sean Menke has resigned as Executive VP & (COO), effective September 18, to pursue another opportunity.

News Item A-2: See photo - "HWI-2015-09 - TOP 10 2015.jpg."

October 2015: News Item A-1: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a 3rd-quarter net profit of +$70 million, nearly doubling net income of +$35.6 million in the 2014 September quarter.

(HWI) generated $631.74 million in revenue during the quarter, down -1.2% year-over-year, while expenses lowered -10.5% to $477.1 million. Operating income was $154.7 million, up +45.7% over an operating profit of +$106.2 million in the 2014 3rd quarter.

Hawaiian (HWI)’s fuel costs for the 3rd quarter were down -42.1% year-over-year to $105.5 million, but the fuel improvement drops to 36.2%, when factoring in a -$13.7 million loss on fuel hedging. (CFO) Shannon Okinaka acknowledged at (HWI)’s Honolulu headquarters that fuel hedging is “definitely a headwind” for (HWI), but she defended the company’s hedging strategy.

“Our hedging program is designed more from a risk management perspective,” Okinaka said. “It’s been a tough year this year on hedging, but what’s good is the losses on hedging are far outweighed by the [overall] savings [from low fuel prices]. The lower fuel prices obviously have helped a lot.”

She said (HWI) has made “some slight tweaks” to its hedging position, but noted that “generally, the strategy of the program remains the same.” (HWI) is still about 50% hedged going forward.

“The general theory of why we hedge is the same,” Okinaka said. “We’re still fairly small and we could be severely impacted by shocks. We’d be impacted way more than [larger USA] carriers. We do still use hedging as a risk management tool.”

Hawaiian (HWI)’s 3d-quarter traffic increased +2.7% year-over-year to 3.88 billion (RPM)s on a +3.6% rise in capacity to 4.66 billion (ASM)s, producing a load factor of 83.3% LF, down -0.7 points. Yield fell -4.4% to 14.34 cents.

(HWI)’s fleet of 51 aircraft is anchored by 18 Boeing 717-200s used for inter-islands services and 21 Airbus A330-200s used for international and USA mainland flights. It will take delivery of +1 more A330-200 by the end of 2015.

News Item A-2: "Hawaiian Airlines to Revamp A330 Cabins, Adding 18 Lie-flat Seats" by (ATW) Aaron Karp, October 19, 2015.

Hawaiian Airlines (HWI) has unveiled a cabin redesign on its fleet of Airbus A330-200s featuring 18 lie-flat premium cabin (PY) seats.

(HWI) will also install +28 “extra comfort” economy (Y) seats, bringing its total to 68 premium economy (PY) seats on A330-200s. Its A330-200s will go from 294 seats to 278 total seats. (HWI) has 21 A330-200s in its fleet and will add +1 more by the end of 2015.

The cabin redesign will start in the 2nd quarter of 2016 and is scheduled to be completed by the middle of 2017. “I think there will be a tendency to have [redesigned A330s] on our international routes 1st,” (HWI) President & (CEO) Mark Dunkerley said October 19 when announcing the cabin redesign to reporters during (HWI)’s global media day at the company’s Honolulu headquarters.

Despite having fewer total seats on its A330s, “we think that yields as a whole will likely go up,” Dunkerley added. “We did extensive modeling to figure out what would be the optimum configuration for the markets we serve.”

The “extra comfort” seats have a 36-inch pitch, while the economy (Y) seats will continue to have a 31-inch pitch.

December 2015: News Item A-1: See attached - -
"HWI-2015-12 - Global Reach A/B/C/D/E.jpg."

News Item A-2: Hawaiian Airlines (HWI) will operate daily flights between Honolulu and Tokyo Narita Airport starting July 22, 2016.

(HWI), which will use an Airbus A330-200 on the route, already operates daily A330 service between Honolulu and Tokyo Haneda Airport. (HWI) also operates flights from Honolulu to Osaka and Sapporo in Japan.

The Narita route announcement comes after the USA Department of Transportation (DOT) designated (HWI)’s proposed Kona, Hawaii - Haneda route as the backup for American Airlines (AAL)'s Los Angeles - Haneda route, which (AAL) must start by February 29, 2016 and operate daily. If (AAL) fails to provide daily service on the route (1 of 4 daily Haneda route authorities available to USA airlines) the authority would transfer to (HWI) for daily Kona - Haneda A330 service.

In announcing the Narita service, (HWI) President & (CEO) Mark Dunkerley noted that (HWI)’s existing flights to/from Japan have average load factors “routinely >90% LF.”

The Honolulu - Narita flight will operate as HA821, while the Narita - Honolulu flight will operate as HA822. (HWI)’s A330-200s are configured with 294 seats, including 18 business (C)-class seats and 40 36-inch pitch premium economy (PY) seats. (HWI) indicated that is the configuration with which it will start the Narita flights, but (HWI) is retrofitting its A330 cabins starting in mid-2016 to add 18 lie-flat seats and increase the number of premium economy (PY) seats by +28, while lowering the total seat count to 278.

Dunkerley said in a recent interview that “Hawaii as a destination [from Japan] dwarfs other communities in the USA” and the Hawaii Tourism Authority noted that Japan comprised 18% of total arrivals in the state in 2014.

Regarding Haneda, Dunkerley said that (HWI) will continue “expressing our strongly held belief that the best use of limited Haneda access for USA carriers is to have a 2nd destination in Hawaii.”

News Item A-3: Hawaiian Airlines (HWI) announced 2 tentative agreements on 2-year contracts with the International Association of Machinists and Aerospace Workers (IAM). The agreements will increase compensation for >1,500 employees in District 141 employed in the clerical, office, stores, fleet and passenger services and >700 employees in District 142, who work as aircraft mechanics (MT) and inspectors, line servicemen, cleaners, and contract services personnel.

January 2016: News Item A-1: "Hawaiian Airlines (HWI) Reported 2015 Net Profit of +$182.6 Million" by (ATW) Linda Blachly, January 27, 2016.

Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a 2015 net income of +$182.6 million, more than doubled from a net profit of +$68.9 million in 2014.

Full-year revenue was up +0.1% to $2.32 billion, while expenses decreased -8.6% to $1.89 billion, producing an operating profit of +$426.1 million, up +73.8% in 2014.

Scheduled traffic for 2015 was up +3.9% year-over-year (Y-O-Y) to 14.5 billion (RPM)s, while capacity increased +3.8% to 17.7 billion (ASM)s, producing a load factor of 81.6% LF, up +0.1 point. Yield was down -4.6% to 14.02 cents.

(HWI)’s 2015 4th-quarter net income was +$37.9 million, more than tripled from $11.1 million in the year-ago 4th quarter. 4th-quarter revenue was down -0.1% to $574.2 million, while expenses were down -6.5% to $465.3 million, producing an operating income of $108.8 million, up +40.8% (Y-O-Y).

(HWI) President & (CEO) Mark Dunkerley attributed the results to the “low cost of fuel, robust demand in all of our major geographies, manageable industry capacity growth between the USA mainland and Hawaii in the 2nd half of the year.”

He said the strong financial results “validate the decision we made to grow rapidly in the last 5 years. The cash flow we generated in 2015 was used to pay down a portion of the debt we took on to finance our growth and for the further strengthening of our balance sheet.”

Looking forward, Dunkerley said (HWI)’s outlook is “for these positive trends to continue and the headwind of a strong USA dollar in our international markets to decelerate, giving us a measure of confidence that 2016 will be an even better year for our business.”

News Item A-2: "Hawaiian Airlines’ (HWI)'s (IAM) Workers Ratify Labor Agreements" by (ATW) Linda Blachly, January 13, 2016.

Hawaiian Airlines (HWI)'s workers, represented by the International Association of Machinists & Aerospace Workers (IAM), ratified recent tentative agreements. The accords cover approximately 2,200 mechanic and related, clerical, office, stores, fleet service and passenger service employees.

The 5-year accords provide pay increases and enhanced job security, while holding the line on health care costs. The new contracts also secured profit sharing and other incentive programs.

News Item A-3: "JetBlue (JBL), Hawaiian Airlines (HWI) Expand Code Share" by (ATW) Linda Blachly, January 20, 2016.

JetBlue (JBL) has expanded its partnership with (HWI) through a bilateral code share agreement.

(JBL) said it is placing its B6 code on nonstop flights operated by (HWI) between New York (JFK) and Honolulu International Airport (HNL). The B6 code is also available on select connecting flights from (JBL)’s East Coast network to Honolulu via Los Angeles (LAX), San Francisco (SFO) and Las Vegas (LAS) and onward to (HWI)’s neighbor island network to destinations including Maul (OGG), Kona (KOA) and Lihue (LIH). Additionally, (HWI)’s HA code, which has been on select (JBL) flights since 2012, is expanding to additional destinations in (JBL)’s growing network.

Customers purchasing a code share itinerary will benefit from having a single ticket that includes (HWI) and (JBL)-operated flights as well as conveniences on their day of travel like one-stop check-in and baggage transfer, according to (JBL). “(JBL) and (HWI) have been consistently strengthening our relationship since we 1st partnered nearly 4 years ago so that we can offer the best travel benefits to our customers,” (JBL) Senior VP Airline Planning Scott Laurence said. “This latest step makes it easier than ever to book seamless travel, connect across our diverse networks of destinations and earn loyalty points anywhere our airlines fly.”

February 2016: Hawaiian Airlines (HWI) appointed Jay Schaefer to the position of VP & Treasurer. He most recently served in various Financial Planning & Analysis and Transportation Finance roles for Amazon in Seattle. Previously, he spent 13 years with the Alaska Air Group, where he held Manager, Director, and VP roles.

March 2016: News Item A-1: Hawaiian Airlines (HWI) said it will restructure its commercial business as part of a long-term strategy for evolution in the market, following >5 years of rapid growth in Japan.

By the end of June, (HWI) said it will hire 14 employees based out of its Tokyo, Osaka, and Sapporo gateway cities to focus on the full complement of commercial activities.

According to (HWI), the new in-house team will focus on sales, account management, business development, distribution, and partnerships plus promotions. Global Service Agency, (HWI)’s general sales agent partner, will “continue to play an instrumental role under (HWI)’s redefined business model with the provision of reservations, ticketing, administrative, and regulatory support.”

(HWI) Country Director Japan, Takaya Shishido said, “Japan is now our largest international market, and there are unique opportunities to efficiently support the business, and enhance our presence to scale for even more growth in the future.”

News Item A-2: (HWI) is increasing services with its Ohana turboprop operation in the wake of flight cuts by local competitor Island Air. Ohana will increase to 5 from 3 direct daily roundtrips between Honolulu and the island of Lanai on May 16. The announcement came several days after Island Air said it will cut its own Lanai service as of March 31.

Ohana’s current roundtrips between Honolulu and Lanai are supplemented by a Honolulu - Molokai - Lanai roundtrip. After the changes, there will be 5 direct daily flights from Honolulu to Lanai, and 4 in the opposite direction plus the service that stops in Molokai. Ohana operates 3 ATR 42-500 passenger aircraft.

Island Air offers 2 daily flights between Honolulu and Lanai, which also stop in Kahului on the island of Maui. The Lanai route cut is part of Island Air’s restructuring efforts, following a change of ownership. (HWI) was owned by Oracle founder Larry Ellison, who sold a majority stake to local investors in a deal approved by regulators in February. Ellison owns most of Lanai.

New Island Air (CEO) Les Murashige said that as (HWI) is restructuring, it is “taking a hard look at all of the destinations we serve and where our resources are best deployed.” (HWI) is
reportedly looking at expanding into other inter-island markets, and the new management has said it intends to increase the fleet of 5 ATR 72s.

Cutting Lanai service will leave Island Air with flights between Honolulu and Kahului, and also a new service between Honolulu and Lihue on the island of Kauai that is due to start on March 15.

Separately, Hawaiian Airlines (HWL) reported that its systemwide traffic was up +7% year-on-year in February, on a capacity increase of +5.4%. Load factor grew +1.2 points to 79.1% LF.

April 2016: News Item A-1: Hawaiian Airlines (HWI) parent, Hawaiian Holdings reported a +$51.5 million net profit for the 2016 1st quarter, nearly doubling its (1Q) 2015 +$25.9 million net income.

1st-quarter revenue grew +2% year-over-year (YOY) to $551.2 million, while expenses were down -2.1% (YOY) to $459.3 million, producing an operating income of +$91.9 million, up +29.1% year-over-year.

(HWI) President & (CEO) Mark Dunkerley attributed the results to the “solid demand for travel to Hawaii, manageable industry capacity growth and the low cost of fuel.”

Scheduled traffic for 2016 1st quarter was up +5.8% (YOY) to 3.5 4 billion (RPM)s, while capacity increased +3.3% (YOY) to 4.36 billion (ASM)s, producing a load factor of 81.1% LF, up +2 points (YOY). Yield was down -2.9% (YOY) to 13.61 cents.

During the April 21 conference call to analysts and reporters, Dunkerley revealed (HWI)’s application for new 2 routes between Tokyo’s Haneda International Airport and Hawaii.

“In February, the [USA (DOT)] reached an agreement with the government of Japan for expanded access to Haneda International Airport in Tokyo, an objective we have long supported,” Dunkerley said. “Under the amended agreement, 2 additional route rights will be available for USA carriers, 1 for use during daytime hours, and 1 for nighttime.”

“A few minutes ago (HWI) submitted its application for 2 of the now 6 routes for USA carriers to serve Haneda. The 1st is to serve the Honolulu - Haneda route daily, as it exists today, and the 2nd is to split another daily service between frequencies from Haneda to Kona, and additional flights to Honolulu,” Dunkerley said.

“With almost 4 out of every 10 passengers that travel between the USA and Japan coming to Hawaii, we are hopeful that the (DOT) will reward (HWI) both of the routes that it seeks,” Dunkerley said.

Dunkerley also spoke about (HWI)’s recently begun overhaul of its Airbus A330 fleet to include fully lie-flat seats in the aircraft’s premium cabin. “The 1st aircraft is due to be completed later this quarter and after this summer, we will be modifying all of our A330s nose- to-tail to the beginning of 2018,” Dunkerley said. “The increasing deployment of our A330s on long haul missions in the years ahead makes this a sensible time to modify our A330 fleet.”

Additionally, Dunkerley provided (HWI)’s take on the recent announcement of Alaska Airline (ASA)’s intention to acquire Virgin America (VUS). “We compete with both companies today on service between the western USA and Hawaii. Our competitive [costs, performance and hospitality] have proven to be a winning combination against a wide variety of competitors over many years, and we expect to be successful regardless of a changing competitive landscape,” Dunkerley said.

“Inevitably we’ve received questions regarding the prospect for future consolidation and its potential to include (HWI),” Dunkerley said. “Let me reiterate our long-standing policy in addressing such questions, by saying that management seeks the maximization of long term shareholder value and that beyond this, we don’t comment on hypothetical scenarios.”

July 2016: News Item A-1: Hawaiian Airlines (HWI)’s parent Hawaiian Holdings reported a 2016 2nd-quarter net profit of +$79.6 million, up +62.9% from its +$48.8 million net profit in the year-ago quarter.

(HWI) President & (CEO) Mark Dunkerley said the (2Q) results were driven by “moderate industry capacity through the majority of our network [and] lower fuel costs.”

2nd-quarter operating revenue was up +4.1% year-over-year (YOY) to $594.6 million, while expenses were down -0.9% (YOY) to $475.7 million, producing operating income of +$118.9 million, up +30% from +$91.4 million in operating income for (2Q) 2015.

(HWI)’s unit revenue (RASM) for the quarter was 13.06 cents, up +1.6% (YOY).

(HWI)’s (2Q) economic fuel expense, which includes losses from fuel hedging, came to $92.6 million, down -28.3% (YOY).

(HWI)’s (2Q) traffic increased +7.2% (YOY) to 3.85 billion (RPM)s on a +2.5% (YOY) increase in capacity to 4.55 billion (ASM)s. (HWI)’s passenger load factor for the quarter was 84.5%, up 3.79 points (YOY). Yield was down -3.2% (YOY) to 13.48 cents.

(HWI) took delivery its 23rd Airbus A330 during the quarter under a 6-year lease agreement.

During the quarter, the USA Department of Transportation (DOT) on May 16 awarded (HWI) the right to operate between Tokyo Haneda Airport and Honolulu and Kona, Hawaii. The (DOT) approved Hawaiian’s application for the sole nighttime Haneda slot the Japanese government made available for USA service. (HWI) plans to use the slot to fly to Kona 3x-weekly and Honolulu 4x-weekly.

Looking to the rest of the year, Hawaiian Holdings revised its unit revenue projections, lowering its (RASM) projection by -1% for the (3Q) to +2% growth. For capacity, measured in (ASM)s, (HWI) upped its (3Q) projection by +4.5% to show +6.5% growth in the (3Q), to 4.66 billion (ASM)s. For the full year 2016, (HWI) upped its capacity projection by +3%, to +5% growth for the full-year to 17.73 billion (ASM)s.

News Item A-2: "(DOT) Proposes 4 USA Airlines for Daytime Slots at Tokyo Haneda" by (ATW) Mark Nensel, July 20, 2016

The USA Department of Transportation (DOT) on July 20 gave tentative approval to American Airlines (AAL), Delta Air Lines (DAL), Hawaiian Airlines (HWI), and United Airlines (UAL) as proposed final candidates for daytime service to Tokyo Haneda Airport. USA departure cities proposed by the (DOT) are Los Angeles, Honolulu, San Francisco, and Minneapolis.

The applicants are aiming for 5 flights per day to Tokyo Haneda, which is regarded as Japan’s busiest airport and is the closest airport to downtown Tokyo.

Following the February 18 agreement between the USA and Japanese governments to open Haneda to daytime USA service, 4 USA airlines applied for the daytime rights. The agreement, which was an amendment to the bilateral "Open Skies" agreement between the USA and Japan, announced that effective October 30, 2016, the 4 existing USA nighttime slot pairs at Haneda will be transferred to daytime hours. Additionally, a new daytime slot plus a new nighttime slot were announced and made available.

Hawaiian Airlines (HWI) was the only carrier to apply for the new nighttime opening. The (DOT) awarded the slot to (HWI) on May 13, for service between Honolulu and Haneda, and service between Kona, Hawaii, and Haneda.

Nonstop nighttime flights to Haneda are already in operation from Los Angeles (operated by (DAL), (AAL) and (UAL)), Honolulu (operated by (AAL), (HWI) and (UAL)) and San Francisco (operated by (AAL) and (UAL)).

The (DOT) will receive objections to the proposed allocations through August 1, with answers to the objections due for submission the following week, on August 8. The (DOT) said it will review all of the material and make its decision soon thereafter.

September 2016: " Hawaiian Airlines Opens Honolulu - Brisbane (ASPIRE) Route" by (ATW) Mark Nensel, mark.nensel@penton.com September 21, 2016.

Hawaiian Airlines (HWI) completed the 1st flight on its 2nd Asia & South Pacific Initiative to Reduce Emissions (ASPIRE) route (Honolulu to Brisbane, Australia) on September 21.

(HWI) said the flight, which used an Airbus A330, saved a projected 1,500 lbs (>680 kg) of fuel. (HWI)’s Honolulu - Auckland route became the (HWI)’s 1st (ASPIRE) city pair earlier this year, with an inaugural flight on April 22, 2016. The return (ASPIRE) flight to Honolulu departs Brisbane on September 22.

According to (EPA) calculations, (HWL)’s 3x-weekly flights on the Honolulu - Brisbane route using (ASPIRE)’s 7 best practices have the potential to reduce carbon dioxide emissions by 670,000 kg per year. (ASPIRE) flights implement 7 gate-to-gate environmental markers designed to reduce fuel burn and carbon emissions.

The 7 best practices include:

* User Preferred Routes (customized flight paths based on fuel optimization and forecasted winds, among other factors);

* Dynamic Airborne Reroute Procedures (the ability to make in-flight route adjustments in response to updated atmospheric conditions);

* Optimized Descent Profile (in which an aircraft approachs an airport and lands with minimal changes in engine thrust);

* 30/30 Reduced Oceanic Separation;

* Time-based Arrivals Management;

* Arrivals Optimization;

* Departures Optimization; and

* Surface Movement Optimization.

(ASPIRE) was created in 2008 as a joint venture (JV) of Airservices Australia, Airways New Zealand and the (FAA), with the aim of lessening the environmental impact of aviation across Asia and the South Pacific.

Other entities that have joined (ASPIRE) since then, include Japan’s Civil Aviation Bureau, the Civil Aviation Authority of Singapore (CAAS), and Thailand’s (ATC) authority AeroThai.

To qualify as an (ASPIRE) Daily City Pair route, aircraft must be equipped with advanced avionics, including satellite-based Required Navigation Performance avionics and the Future Air Navigation System (FANS), (HWI) said.

November 2016: News Item A-1: Hawaiian Airlines (HWI) will launch 4x-daily Honolulu - Kapalua service from January 18, 2017.

News Item A-2: (UTC) Aerospace Systems has been selected by Hawaiian Airlines (HWI) to provide electronic flight bags (EFB)s on (HWI)’s Airbus A330 and Boeing 717 and 767s.

December 2016: News Item A-1: Hawaiian Airlines (HWI) launched 3x-weekly nonstop Haneda - Kona service on December 21.

News Item A-2: China Aircraft Leasing Group Holdings Limited ("CALC") (CHD), the largest independent operating aircraft lessor in China, is pleased to announce that it has signed a lease agreement with Hawaiian Airlines (HWI) for a long term lease of an Airbus A321neo aircraft. The A321neo is expected to be delivered in 2018.

(HWI) is (CHD)'s 1st customer in the Americas, marking another milestone for the Group's global expansion. Since (CHD) began to tap into overseas markets in 2014, it has acquired airline clients in Asia Pacific, Europe and now the Americas.

Ms Winnie Liu, Deputy (CEO) and Chief Commercial Officer of (CHD) commented, "We are very excited to establish a business partnership with (HWI), our 1st USA client.

The A321neo for (HWI) will be the 1st of 74 new technology A320neo Airbus family aircraft which (CHD) has on order until 2022.

Hawaiian Airlines (HWI) is Hawaii's largest and longest-serving airline with 88 years of operation, as well as the largest provider of passenger air service from its primary visitor markets on the USA Mainland. (HWI) offers a non-stop service to Hawaii from 11 USA gateway cities, along with a service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. (HWI) also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of >200 daily flights system-wide.

January 2017: News Item A-1: Hawaiian Airlines (HWI) reported a full-year 2016 net profit of +$244.1 million, up +33.7% from net income of +$182.6 million in 2015. (HWI) reported adjusted net income of +$280 million for the year, or $5.19 per share, up +48% over adjusted net income of +$189.3 million in 2015.

(HWI)’s 2016 revenue grew +5.7% year-over-year to $2.5 billion. Full-year expenses increased +7.9% to $2 billion, producing an operating profit of +$409.5 million, down -3.9% from operating income of +$426.1 million in 2015.

Passenger revenue for the year rose +5.9% year-on-year, with passenger unit revenue up +2.1% and yield declining -1.1%. Traffic increased +7.1% on a +3.7% capacity gain. Total operating costs were up +4%, and fuel costs fell -20.8% year-over-year.

(HWI)'s 2016 4th-quarter net profit was +$10.6 million, down -71.9% from +$37.9 million net income in the year-ago December quarter.

During Hawaiian Holding’s year-end financial call with analysts and reporters, Hawaiian Airlines (HWI) President & (CEO) Mark Dunkerley revealed that 3 expected Airbus A321neos, originally delayed by 3 months, will now not be delivered until the 4th quarter of 2017. “[It] all but rules out our prior plan to have them in service for our busy winter peak,” Dunkerley said. “The delay impacts our projected (ASM) growth for the year and of course the revenues we anticipate in the 4th quarter.” "With the delivery delay of the A321neos we've been forced to refine our capacity plans for 2017," (HWI) Executive VP & (CCO) Peter Ingram said. "[While] in the 1st quarter we expect our capacity to grow +2.5 to +4.5% from last year, we are now expecting full year capacity growth of +1 to +4%."

(HWI) ordered 16 A321neos in March 2013, with deliveries scheduled to begin in early 2017 through 2020. The aircraft will be used on long-haul flights between Hawaii and the USA west coast.

Responding to an analyst’s question as to the cause of the delay, Dunkerley said: "The 1st thing I’d say is that this is a very important airplane to us. We think it’s really going to transform service between Hawaii and the USA mainland. We’re certainly not stepping away from our enthusiasm for the airplane. The 2nd thing is that it’s an aircraft that will likely operate for 20-plus years. Airbus (EDS) is giving us their best belief in the delivery of this aircraft; it’s tied to the release of an improved component in the Pratt (PRW) (GTF) [PW1135G-JM] engine. So I think their level of confidence is reasonably high. That is not to say that it’s a cast-iron guarantee but we have every expectation of getting the aircraft on the timeline that has now been established. At the moment our focus is on getting the aircraft in the right shape in our fleet as quickly as we can.”

News Item A-2: Hawaiian Airlines (HWI) starts 1x-daily nonstop Kona (KOA) to Kahului (LIH) ATR 42 service on March 12.

News Item A-3: Hawaiian Airlines (HWI) appointed John Jacobi as VP Information Technology. He most recently served as an officer at (CWB) Consulting, where he led multi-year Information Technologies (IT) strategies for JetBlue Airways (JBL), Southwest Airlines (SWA) and Bank of Montreal.

March 2017: News Item A-1: Hawaiian Airlines returned to Kapalua (JHM) in West Maui on March 1, an airport it has not served in >2 decades, with flights from Honolulu (HNL) and Kahului (OGG).

Kapalua Airport’s IATA code (JHM) is designated after former Hawaiian Airlines (HWI) Owner & (CEO), John H Magoon, who helped to build the airport which also celebrated its 30th anniversary on the day of Hawaiian Airlines (HWI)’s return. “This daily Kapalua service will complement our existing flights at Kahului Airport and make it even more convenient for kama’&#257;ina and visitors alike to visit the Ka’anapali Coast.” The 26 km link from Kahului will depart at 09:55 daily, landing into Kapalua at 10:17. Then (HWI) will operate from Kapalua to Honolulu, a route 135 km in length, 2x-daily, with the 1st flight leaving at 10:45, arriving back at 12:47. The 2nd daily departure will leave at 13:13, getting back to Kapalua at 15:11. The 48-seat ATR 42, the aircraft of choice for these services, will then operate the return flight to Kahului, with the aircraft leaving Kapalua at 15:40, landing into the former airport at 16:02.

(HWI) last served Kapalua in 1993. While Hawaiian Airlines (HWI)’s new link from Kahului will face no direct competition, it should be noted that services to Honolulu will go head-to-head with Mokulele Airlines which already provides 63 weekly flights on its 9-seat Cessna Caravans. Although (HWI) will have fewer weekly flights, it will offer more seats, with it having 54% of weekly seats on the sector. The result of (HWI)’s arrival on the route means that seat capacity between Kapalua and Honolulu has risen by +118%

News Item A-2: Hawaiian Airlines (HWI) this month commenced flights on a new intra-Hawaiian link between Kona (KOA) on Hawaii Island and Lihue (LIH) in Kauai. Inaugurated on March 12, (HWI) will offer a daily flight on the 422 km sector using its 717s. No other carriers operate the route. “Demand from our kama‘&#257;ina and visitors for travel between Hawaii Island and Kauai has been growing steadily over the past few years,” said Peter Ingram, (CCO) (HWI). “We are proud to now offer our guests direct access between these islands, in addition to our connecting flights through Honolulu or Maui. This gives travelers greater flexibility and convenience when traveling through the Hawaiian Islands.”

April 2017: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), reported a +US$36.9 million net profit for the 2017 1st quarter, down -28.3% from a +US$51.5 million net income in (1Q) 2016.

During the investor call April 20, (HWI) (CEO) Mark Dunkerley also announced that deliveries of 16 Airbus A321neos, originally scheduled for early 2017 but delayed by several months, will begin in October. As a result, (HWI) has revised its full-year capacity guidance.

(HWI)'s 1st-quarter revenue was up +11.4% year-over-year (YOY) to US$614.2 million, as expenses climbed +20.4% to US$546.9 million, resulting in an operating profit of +US$67.3 million for the quarter, down 30.6% from (1Q) 2016.

Fuel expenses for the quarter were up +48.1% to US$103.5 million, compared to US$69.9 million in (1Q) 2016.

Dunkerley said the company's "year has started extremely well - strong demand coupled with benign industry growth across our network has given us a robust operating environment sufficient to more than offset the rising price of fuel."

(HWI)'s passenger traffic increased +7.2% during the quarter to 3.8 billion (RPM)s, as capacity grew +3.5% to 4.5 billion (ASM)s, resulting in a passenger load factor of 84% LF, up +2.9 points (YOY).

Yield increased +4% (YOY) to 14.16 cents. (PRASM) was up +7.7% (YOY) to 11.89 cents. (CASM) ex-fuel was up +6.7% to 9.39 cents.

For the full-year 2017, (HWI) raised its guidance range for both capacity and jet fuel consumption, citing "planned increases in flying and higher-than-expected payload increases from cargo and passengers," the company said. (HWI) expects (ASM)s to be up 2%-5% for the full year, and gallons of jet fuel consumed to increase +4.5% TO +7.5%.

Hawaiian (HWI)'s full-year capacity guidance is up a full percentage point from the 1% to 4% forecast in its 2016 year-end results. Additionally, the company predicts its economic fuel cost-per-gallon to fall between US$1.77 and US$1.87, up 2 cents from its previous guidance.

(HWI) has 23 Airbus aircraft on order and still to be delivered as of March 31, including the 16 A321neos, plus 6 A330-800neos and 1 A330-200. All A321neos are planned to be in operation by the end of 2020. 1st A330-800 deliveries are expected for 2019.

May 2017: Hawaiian Airlines (HWI) begins new interline relationship with South African Airways (SAA) covering many African cities.

August 2017: Hawaiian Airlines (HWI) (CEO) Mark Dunkerley is proposing a new approach to slot allocation to enhance competition at increasingly constrained global airports. Limited access for new entrants is a growing problem at many major airports because of domination by incumbents and lack of infrastructure development, Dunkerley said at the recent (CAPA) Australia Pacific Aviation Summit in Sydney. He has previously used this annual event to highlight other airline market access issues.

September 2017: News Item A-1: Japan Airlines ((IATA) Code: JL, based at Tokyo Haneda) (JAL) has signed a partnership agreement with Hawaiian Airlines (HWI) encompassing extensive code sharing, lounge access, and frequent flyer program reciprocity. Signed during a ceremony in Tokyo, the deal with (JAL) will come into effect from March 25, 2018, onwards subject to all government approvals being secured.

It will also signal the end of an existing partnership between (HWI) and (JAL) rival All Nippon Airways ((IATA) Code: NH, based at Tokyo Haneda) (ANA).

News Item A-2: Hawaiian Airlines (HWI) and Japan Airlines (JAL) have signed a new partnership arrangement that includes extensive code sharing, lounge access and frequent flyer program reciprocity. The agreement, subject to government approval, takes effect March 25, 2018. As part of this comprehensive partnership, the 2 carriers said they also intend to establish a joint venture to enhance services to/from Japan and beyond to multiple Asian markets

October 2017: News Item A-1: Hawaiian Holdings, parent of Hawaiian Airlines (HWI), posted $74.6 million in net income for the 2017 3rd quarter, down -27.2% compared to a +$102.5 million net profit in (3Q) 2016. Yet the company reported its “highest quarterly revenue result ever,” according to (HWI) Executive VP & (CCO) Peter Ingram, at $719.6 million, up +7.1% year-over-year (YOY).

News Item A-2: Hawaiian Airlines ((IATA) Code: HA, based at Honolulu) (HWI) Chief Executive Officer (CEO) Mark Dunkerly has confirmed (HWI) is considering acquiring 787s given anemic global sales for the A330-800neo of which it has 6 on order from Airbus ((ICAO) Code: AIB, based at Toulouse Blagnac).

Speaking to (CNN) News, Dunkerly said weak global demand for the A330-800 had lead (HWI) to question whether the aircraft was the right option. Aside from the 6 A330-800neo on firm order, (HWI) has options for +6 more of the type with deliveries due for 2019 (2), 2020 (2), and 2021 (2). It is, at present, the type's only customer with other operators preferring to go for the larger A330-900neo instead.

"We're still a big believer in the Airbus (EDS) program, but we also know that Boeing (TBC) has some terrific alternatives which we're also interested in looking at," he said, adding that talks with (TBC) have focussed on the 787 family.

(HWL) currently operates a mixed wide body fleet entailing 1 767-300, 7 767-300ERs, and 24 A330-200s. However, the 767s are due to be withdrawn from service by the end of 2018 and being replaced by A330-200 and A321neo capacity.

According to Dunkerly, (HWI) may retain its fleet of 20 717-200s, that currently average almost 16 years of age, well into the 2030s.
"...we've got plenty of runway ahead and at this stage we're not even contemplating 717 retirement," he said.

(HWI) currently has 52 aircraft operating to 30 destinations, on 46 routes and 253 daily flights.

Hawaiian Airlines' regional unit, "Ohana by Hawaiian," will temporarily suspend direct flights between Kaunakakai (Molakai) and Kahului (Maui) until mid-December due to scheduled aircraft maintenance, reports "The Maui News." The flights are operated for Hawaiian by Empire Airlines ((IATA) Code: EM, based in Coeur d'Alene, Idaho) using ATR 42-500 equipment, of which Empire has 3.

Under the revised routings, the direct flight from Molokai and Maui is suspended.

November 2017: News Item A-1: Hawaiian Airlines (HWI) President & (CEO) Mark Dunkerley will retire and be replaced by Executive VP & (CCO) Peter Ingram, effective March 1, 2018, ending a 15-year run in which Dunkerley transformed (HWI), the Honolulu-based carrier.

Dunkerley, born in England and educated in the USA, joined (HWI) as President & (COO) at the end of 2002 after having served as (COO) of Brussels-based Sabena Airlines (SAB). His 1st order of business was guiding the then-struggling (HWI) through a Chapter 11 bankruptcy reorganization that lasted for >2 years.

As recently as 2010, (HWI) flew almost entirely among the Hawaiian Islands and between Hawaii and the USA west coast, operating a fleet of aging Boeing 767s on its USA west coast routes.

It now flies to Tokyo, Osaka, Sapporo, Seoul, Beijing, Auckland, Sydney, Brisbane and New York (JFK), among other destinations (Honolulu to (JFK) is the longest domestic flight in the USA). Airbus (EDS) A330s make up the backbone of its long-haul fleet, and it has just taken delivery of its 1st A321neo.

Since December 2002, when Dunkerley joined (HWI), (HWI) has doubled annual passengers flown to 11 million. “This has been a heart-wrenching decision,” Dunkerley said in announcing his departure.

Ingram, a Canadian, came aboard as (CFO) in November 2005, shortly after (HWI)’s emergence from Chapter 11, having just spent 3 years as American Eagle Airlines’ (CFO). “Peter Ingram has been an important part of Hawaiian Airlines (HWI)’s growth and success for the past 12 years, and we are confident in his deep knowledge of the airline, the industry and the community,” (HWI) board Chairman Lawrence Hershfield said. Ingram became (CCO) in 2011, overseeing marketing, sales, revenue management, network planning, loyalty programs and cargo.

In a 2015 interview in Honolulu, Ingram told (ATW) that he and Dunkerley spent a lot of time during the previous decade defining (HWI) for the investment community. “We are leisure-oriented, so managing our cost structure is important, but we provide amenities that you wouldn’t see on a low-cost carrier,” he said. “So we developed this term ‘destination carrier’ because what we’re about is serving Hawaii, serving all the travel needs of people visiting here, people coming from other places. And we’ve really turned that into a defining description of what we are as an airline that is distinct from those standard models that you see elsewhere.”

News Item A-2: Honolulu-based Island Air, which has operated inter-island flights in Hawaii for 37 years, abruptly announced it will cease operations. “We are no longer accepting new reservations at Island Air and will cease operations at end of day on November 10, 2017,” a brief message on Island Air’s website states. “For inquiries on refunds, please contact your credit card company. We apologize for any inconvenience this may have caused.”

December 2017: Hawaiian Airlines (HWI) will launch daily San Diego to Maui, Hawaii Airbus A321neo service from May 1, 2018.

January 2018: News Item A-1: Hawaiian Airlines (HWI) now has 2 A321neos which will be used to replace 767-300s for Portland (PDX) to Kahului (OGG), Oakland (OAK) to Lihue (LIH) and Los Angeles (LAX) to Kona (KOA). (HWI) will launch daily Long Beach (LGB), California and Honolulu (HNL), Airbus A321neo service from June 1.

News Item A-2: 3 more carriers are banning so-called smart bags from being checked into luggage holds unless the bag’s integrated lithium battery can be removed and carried separately.

Las Vegas-based (LCC) Allegiant Airlines (WJE), Hawaiian Airlines (HWI) and Chicago-based United Airlines (UAL) have announced the new rules will take effect January 15.

They follow similar actions by other carriers including Air Canada (ACN), Alaska Airlines (ASA), Dallas/Fort Worth-based American Airlines (AAL), British Airways (BAB), Hong Kong’s Cathay Pacific Airways (CAT), Atlanta-based Delta Air Lines (DAL), Etihad Airways (EHD), Qantas Airways (QAN), Qatar Airways (QTA), Southwest Airlines (SWA) and Virgin Australia (VOZ).

Smart bags use lithium ion batteries to power electronics and embedded tracking and self-weigh devices. There is increasing concern, however, about lithium ion batteries causing runaway fires in cargo holds unless devices are properly stored and separated from items that could worsen a fire, such as cans of inflammable liquids.

The (FAA), (NTSB) and (ICAO) have issued warnings on the potential hazards associated with lithium ion batteries and guidelines to minimize fire risks.

Passengers are being told they can check their smart bag only if the battery can be removed and taken on board separately as carry-on.

February 2018: "Hawaiian Airlines Looking To Switch Airbus A330-800 to a Boeing 787-9 Order" by "Airways" February 2018."

Spicing up the continual Airbus (EDS) vs Boeing (TBC) race, "Leeham News" released some startling news suggesting that Hawaiian Airlines (HWI) has canceled its order for 6 Airbus A330-800neos with replacement by Boeing 787-9 Dreamliners. This news portal reported that this could be confirmed before the end of this month.

However, (HWI) has claimed that it has not signed an agreement with either Boeing or Airbus and that an announcement will be made “when it is appropriate.” To counteract the potential cancellation, Airbus has made an offer to (HWI) to cut the price of the A330-800neo, or be given options for A350-900 slots.

Though Boeing seems to be gaining momentum, Boeing’s leasing company, Boeing Capital Corporation has agreed to release (HWI) from the leasing agreements of 3 old Boeing 767-300ERs, which (HWI) has indicated (HWI) would like to get rid of.

* The "Misfit"’ A330-800neo.

The 1st Airbus A330-800neo rolled out of the paint shop at the beginning of February. The variant was officially launched at the Farnborough Air Show 2014 with very little success, recording a small order for only 6 units by the airline that’s looking at the competitor’s 787-9 Dreamliner as a replacement.

Jason Rabinowitz, considered by some to be an aviation expert, called the A330-800neo a “misfit aircraft,” suggesting that the airplane was conceived for a market that no longer exists. With (HWI) canceling the only order the A330-800neo has, Boeing will be accomplishing its goal of killing a program that could have gotten in the way of an eventual 797 product, which would ultimately enter that seat/range segment of the market.

* Hawaiian’s 2nd Thoughts.

In October 2017, (HWI)’s (CEO) Mark Dunkerley admitted that “it was a good time to be looking at alternatives” to the A330-800neo considering how that “(HWI)’s business has evolved.” At the time, Dunkerley said that both Boeing and Airbus “have terrific products.”

According to "Leeham News," Boeing is “determined to win at any cost.” Boeing bid below Airbus’ cost of production, though it’s unclear whether this was below the cost of the A330-800 or the A350-900.

“You can expect Airbus to be pushing as many A321s as possible this year. Boeing is attacking the A330neo wherever it pops up,” said the Fleet Manager of a large Western airline to "Reuters."

Boeing’s strategy will intensify in aggressivity now that Airbus has married Bombardier with the CSeries program, Boeing’s nemesis.

As part of Boeing (TBC)’s campaign, (TBC) was trying to persuade AirAsiaX (ASX) to cancel its 60 A330-900s order. However, (ASX) announced at the Singapore Air Show last month that it was sticking with the A330neo.

The normal sales price of a 787-9 is in the $125 million range, market intelligence indicates. The cost to produce a 787-9 is now believed to be between $80 million and $90 million, Wall Street analysts suggest.

Should (HWI)’s decision to swap for the 787-9 Dreamliner, Airbus will have to find a new home for the early production A330-800neos. Some experts suggest that the plane would be a great fit for cargo and military versions, though Airbus hasn’t hinted any potential plans for this unsuccessful variant.

The bigger sister plane, the A330-900neo will have (TAP) Portugal as its launch customer, expecting to receive the 1st plane before summer time this year. So far, over 219 orders have been logged, with 13 confirmed customers, including Delta Air Lines (DAL), Air Asia X (ASX), Garuda Indonesia (GIA), and Azul (AZL), among others.

March 2018: News Item A-1: Peter Ingram became President and Chief Executive Officer (CEO). Peter was formerly Executive VP & Chief Commercial Officer (CCO), ex-(AMR) Group/(AAL) (2005-12).

News Item A-2: "Hawaiian Airlines (HWI) trims (1Q) Capacity Outlook on A321neo Delivery Delays" by Adrian Schofield, (ATW) Plus, March 13, 2018.

Hawaiian Airlines (HWI) has raised its revenue forecast for the 1st quarter, although it has also trimmed its capacity outlook because of delays in Airbus A321neo deliveries. In its latest guidance, (HWI) said passenger revenue will be better than expected in each of its major regions, as well as its cargo division. This has prompted (HWI) to predict unit revenue growth of +3% to +5% for the 1st quarter, compared to previous estimated range of down -0.5%.

News Item A-3: Hawaiian Airlines (HWI) announced March 6 it intends to purchase 10 Boeing 787-9s with options for 10 additional airplanes, a deal valued at $5.4 billion at current list prices if all purchase rights are exercised. (HWI) selected General Electric (GEnx) engines for the new airplanes; deliveries will begin the 1st quarter of 2021.

(HWI) said its selection of the 787-9 came after a competitive bid process that also included the Airbus A330-900. “We were in the enviable position of choosing between 2 outstanding models for our flagship airplane of the future,” (HWI) President & (CEO) Peter Ingram said, ultimately choosing the 787 Dreamliner as “the best airplane for modernizing our fleet in 2021 and beyond. Its expanded seat capacity and extended range will allow us to expand within our current route network and [to] new destinations in the Asia-Pacific region.”

The purchase of the new airplanes is in letter of intent (LOI) phase at present; (HWI) expects to finalize binding purchase agreements with Boeing (TBC) and (GE) in the 2nd quarter of 2018.

(HWI) indicated it will also begin negotiating inclusion of the new 787-9s in its contracts with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA), which (HWI) said is required prior to final approval of the purchase by its board of directors.

(HWI)'s current mainline fleet comprises 24 Airbus A330-200s, 2 A321neos, 8 Boeing 767 wide bodies and 20 717 narrow body airplanes. (HWI) has an additional 16 A321neos on order, the delivery of which has been plagued by issues related to the aircraft’s Pratt & Whitney (PRW) (PW1100G) geared turbofan (GTF) engines. (HWI) is intending to use the A321neos on its network between Hawaii and the USA mainland. Pratt (PRW) has finally developed a fix that is expected to enable (GTF)-powered A320neo family deliveries to resume in April.

June 2018: Hawaiian Airlines (HWI) and Japan Airlines (JAL) have taken a major step to expand their partnership by applying to operate a revenue-sharing joint venture (JV) in the busy Hawaii to Japan market. The 2 carriers have filed their application with the USA Department of Transportation (DOT) and with Japanese regulators. They are already code share partners, and they propose to strengthen this to a metal-neutral arrangement on their networks between Hawaii and Japan and some beyond destinations. The carriers said they hope to gain approvals later this year, allowing the (JV) to be launched in the 2nd quarter of 2019.

Under their proposed alliance, (HWI) will gain online access to 28 new Japanese domestic destinations, and 6 additional points in Asia beyond Japan. (JAL) will gain online access to 6 new destinations on the Hawaiian interisland network.

The pair will also be able to coordinate scheduling, which will be particularly useful on the Hawaii to Japan sectors. (HWI) offers flights from Honolulu to both major Tokyo airports, Sapporo and Osaka, and flies between Kona and Tokyo Haneda Airport. (JAL) flies to Honolulu from Tokyo Narita Airport, Osaka and Nagoya, and from Narita to Kona. In their (DOT) application, the carriers note the (JV) will expand network opportunities for their customers, and will also reduce connection times. The arrangement will help stimulate traffic into Hawaii, according to the filing.

The carriers have already taken a significant step to improve connections, with (HWI) shifting its operations into Terminal 2 at Tokyo Narita Airport, which is the terminal used by (JAL). This move was made in anticipation of the (JV), the airlines said. There will also be an opportunity for (HWI) to change terminals in Osaka Kansai International Airport.

Adding the Asian online destinations is a key benefit for (HWI). The new Asian points it will gain access to include Hanoi and Ho Chi Minh City in Vietnam, Kaohsiung in Taiwan, Hong Kong, Jakarta and Guam.

(HWI) noted it currently lacks a deep relationship with a major carrier in international markets and is not a member of a global alliance. As a “relatively small carrier,” (HWI) has “encountered difficulties trying to break into international markets as a new entrant.” Gaining approval for the (JV) with (JAL) would “allow (HWI) to overcome these obstacles. The opportunities for further growth as an independent carrier are limited absent deep cooperation with a foreign partner like (JAL).”

If approved, this will be the 1st (JV) for (HWI). (HWI) also noted it would be the 1st (JV) involving a USA carrier outside the "big 3." 2 (JV)s are active in the Hawaii to Asia market (the United Airlines (UAL) All Nippon Airways (ANA) partnership and Delta Air Lines (DAL) Korean Airlines (KAL).

The (HWI) - (JAL) deal “would add a healthy dose of inter-alliance competition to the duopoly that exists today,” the (DOT) filing stated. The applicants said a significant capacity increase is expected in 2019 when (ANA) introduces Airbus A380s to its Hawaii routes.

(JAL) already has a (JV) with American Airlines (AAL) on transpacific routes. This arrangement will not be affected by the proposed (HWI) (JV), since (JAL) will not code share on Hawaiian’s routes to the USA mainland.

(HWI) and (JAL) began code sharing with each other in March. For (HWI), the (JAL) relationship has replaced its terminated code share partnership with (ANA). The (ANA) agreement was never a full (JV), and did not apply to any Asian routes beyond Japan. The (JAL) partnership will also include more domestic Japan points than the previous (ANA) agreement, the filing stated.

August 2018: Hawaiian Airlines (HWI) launched all-cargo ATR72 service between Honolulu’s Daniel K Inouye International Airport (HNL), L&#299;hu‘e Airport (LIH) and Hilo International Airport (ITO) by transporting construction and household supplies to support disaster relief projects in Hanalei on Kaua‘i and Puna on the Island of Hawai‘i.

October 2018: "Hawaiian’s (3Q) Net Income up +31%; A321neo Deliveries ‘Back on Track’" by Adrian Schofield (adrian.schofield@informa.com), October 24, 2018.

Hawaiian Airlines (HWI) reported a (3Q) net profit of +$93.5 million, up +31% compared to net profit of +$71.6 million in the same period a year earlier.

(HWI) (CEO) Peter Ingram described this as a “solid” performance, but still short of expectations mainly because of severe weather events in Hawaii and Japan that affected operations. Operating profit fell -31.5% to $115.8 million. Revenue for the quarter was up +6% to $759 million, with passenger revenue up +4.3%. Operating costs rose +17.6% to $643.3 million. (HWI)'s capacity increased by +8.1% in the 3rd quarter, with yield down -1.7% and passenger unit revenue dropping -3.6%. (HWI) expects 4th-quarter capacity to be up +4.5% to +6.5%, and full-year capacity is forecast to grow by +5.5% to +6.5%. For next year, capacity growth is expected to be less than in 2018.

(HWI) said its A321neo deliveries have caught up to their planned timetable following delays earlier this year, which will allow (HWI) to phase out its remaining Boeing 767s in early 2019.

A321neo deliveries are now “substantially back on track,” Ingram said. (HWI) expects to have 11 of these aircraft by the end of this year, which was its target before delays occurred in the 1st half of the year. (HWI) currently has 9 A321neos.

The delivery slowdown was caused by issues with the Pratt & Whitney (PRW) geared turbofan engine that also affected other airlines. However, Ingram said (HWI) now has “a lot more confidence” in the reliability of the delivery timetable. Delivery dates are typically moving by just a few days or a week, a major improvement from the uncertainty in the 1st quarter.

(HWI) has grown its A321neo fleet to the point that it will be able to retire all its 767s soon after the Christmas/New Year holiday peak, Ingram said. This will mean (HWI) has simplified its fleet to 3 types: the A321neos, A330s and Boeing 717s. The (HWI) fleet is now “better positioned now than at any time in the past decade,” Ingram said.

Regarding (HWI)’s application for antitrust approval for a joint venture (JV) with Japan Airlines (JAL), Ingram said the “working expectation” is that a decision will come in early 2019. This would open the way for the (JV) to be implemented later next year.

November 2018: A321-271neo (8578, N217HA "Kauila"), ex-(F-WZMS) delivery.

January 2019: Hawaiian Airlines (HWI) resumed flights between Kahului (OGG) and Portland (PDX) on January 18, a route it has not flown since 2012. (HWI) will offer a daily service between the 2 airports on its A321s, with flights leaving the Hawaiian airport at 13:05, landing into Portland at 20:30. The A321 then night-stops at the Oregon hub, departing back to Kahului at 08:00 and landing at midday. The 4,120 km route is already flown by Alaska Airlines (ASA) which provides a 2x-daily rotation on the airport pair.


Click below for photos:
HWI-767-300 - 2016-02.jpg
HWI-A321NEO - 2013-04
HWI-A321neo 2017-12.jpg
HWI-A330 N393HA at SEA TAC 2018-03.jpg
HWI-A330-200 N391HA-Moana-2017-03.jpg
HWI-A330-200 N396HA-2017-02.jpg
HWI-A330-243 2010-03
HWI-A330-800neo - 2014-12

April 2019:

4 717-2BL (BR715) (55175, N491HA; 55181, N492HA; 55184, N493HA), BOEING (TBC) LEASED 2012-01. EX-(N912ME; N919ME; N921ME). 8F, 115Y.

5 717-2CM (BR715A1-30) (5002-55001, /98 N488HA 2008-12 "PUAIOHI;" 5003-55002, /98 N489HA "PO'OULI;" 5041-55151, /00 N490HA "O'U"), (TBC) LEASED (2008-12). 8F, 115Y.

11 717-22A (BR715) (5050-55121, /01 N475HA "L'IWI;" 5053-55118, /01 N476HA "'ELEPAIO;" 5061-55122, /01 N477HA "'APAPANE;" 5064-55123, /01 N478HA "'AMAKIHI;" 5069-55124, /01 N479HA "'AKEPA;" 5070-55125, /01 N480HA "PUEO;" 5073-55126, /01 N481HA "'ALAUAHIO;" 5074-55127, /01 N482HA "'AKOHEKOHE;" 5079-55128, /01 N483HA "'AKIAPOLA/AU;" 5080-55129, /01 N484HA "'OMA'O;" 5089-55130, /01 N485HA "PALILA;" 5092-55131, /01 N486HA "'AKIKIKI;" 5098-55132, /01 N487HA "'LO;"), (TBC) LEASED. 55127; & 55128 RETURNED (TBC) 2003-10. 8F, 115Y.

6 767-33AER (PW4060) (857-28139, /01 N582HA "AKE AKE;" 850-28140, /01 N580HA "KOLEA;" 853-28141, /01 N581HA "MANU O KU"). (887-33421, /02 N587HA "PAKALAKALA;" 892-33422, /02 N589HA, "MOLI;" 897-33423, /03 N591HA "AKEKEKE;" 901-33424, /03 N593HA "NENE"). (AWW) LEASED, WITH WINGLETS. ALL 767'S TO BE REPLACED BY A321neos BY EARLY 2019. 18F, 234Y.

3 767-3CBER (PW4060) (890-33466, /02 N588HA "IWA;" 894-33467, /02 N590HA KOA'E'ULA;" 898-33468, /03 N592HA "HUNAKAI"). (BCC) EQUIPMENT LEASED. WITH WINGLETS. ALL 767'S TO BE REPLACED BY A321neos BY EARLY 2019. 18F, 234Y.

4 767-332 (CF6-80A2) (136-23275, N594HA "ULILI;" 151-23276, N596HA "KOA E KEA;" 152-23277, N597HA "AKOHEKOHE;" 153-23278, N598HA "AKIAPOLAAU"), EX-(DAL), BOUGHT FROM WILMINGTON TRUST. ALL 767'S TO BE REPLACED BY A321neos BY THE EARLY 2019. 18F, 246Y.

4 767-3G5ER (PW4062) (251-24257, /89 N585HA "NOIO;" 255-24258, /89 N584HA "KIOEA;" 268-24259, /89 N586HA "OU;" 25531, N583HA "A"), EX-(LTU), (ILF) 84 MONTH LEASED 2002. (ETOPS). ALL 767'S TO BE REPLACED BY A321neos BY EARLY 2019. 18F, 244Y.

10/10 ORDERS (2021-02) 787-9 (GEnx):

0 DC-8.

0 DC-9-51 (JT8D-17) (824-47714, /76 N650HA; 825-47715, /76 N649HA). 972-48122 WFU MOJAVE 2001-05 & PARTED OUT; 47622 2001-07. 2 EX-(ALS). ALL WFU 2002-10. 8F, 125Y.

0 DC-10-10 (CF6-6K) (323-47830, N135AA; 3/00), EX-(AAL), 356-46522 RETURNED TO (AAL) 2001-02. 47827 RETURNED 4/01; 47830 2002-01 WFU. 46708 RETURNED TO (AAL) 2002-10.

0 DC-10-10 (294-27827, N132AA), EX-(AAL) 2000-06, RETURNED, 304 PAX.

0 DC-10-10 (247-46947, N126AA; 249-46948, N127AA; 319-47828, N133AA), EX-(AAL); 46947; 47828; RETURNED TO (AAL) 2003-01.

0 DC-10-30 (CF6-50C2) (106-46712; 165-456713; 167-46714), EX-(TRX), AGES LEASED, HEAVY MAINTENANCE AT DIMENSION GOODYEAR, 3 RETURNED. 314 PAX; OR 84C, 172Y.

0 DC-10-30 (331-47850, N68060; 334-47851, N12061), EX-(CAL), 47851 WFU (LAX) 2001-12, RETURNED.

0 DC-10-30 (261-46991, N35084), (CAL) WET-LEASED 2000-12, RETURNED.

10 +6/9 ORDERS A321-271neo (PW1133G) (N202HA "MAILE" 2017-10; 8578, N217HA "KAUILA" 2018-11), 189 PAX, 3 CLASS (F, PY, Y).

24 +3/1 ORDERS A330-243 (TRENT 772B-60) (1104*, /10 N380HA "MAKALI'I" - SEE PHOTO - - "HWI-A330-243 2010-03;" 1114**, /10 N381HA "HOKULE'A;" 1171**, /10 N382HA "IWAKELI'I;" N383HA; 1259, /11 N384HA "HOKUPA'A;" 1295, /12 N385HA; 1310; 1316 /12 N386HA "HEIHEIONAKEIKI (ORION); 1422, N393HA "LEHUAKONA" 2013-06; 1496, N399HA, 2014-02; 1615, N378HA "KAUKAMAIAMA" 2015-05), *(TCI) LEASED 2010-04. **(AWW) LEASED. 18C, 276Y.

0 A330-900neo (TRENT-7000), ORDER FOR 6 CANCELED.


3 ORDERS (2016-04) ATR72-212F, FREIGHTER.


Click below for photos:
HWI-1-Mark Dunkerley - 2005-10-A
HWI-1-Mark Dunkerley - 2005-10-B
HWI-1-Mark Dunkerley - 2005-10-C
HWI-1-Mark Dunkerley - 2005-10-D
HWI-1-Mark Dunkerley - 2005-10-E
HWI-1-Mark Dunkerley - 2015-12 Interview-B.jpg


Peter was formerly Executive VP & Chief Commercial Officer (CCO)
ex-(AMR) Group (AAL) (2005-12).

September 2011: "Airline Business" magazine Interview:
Dressed in a blue printed shirt in the quintessential Hawaiian style, the Archipelago is famous for, Mark Dunkerley looked perfectly at home among the crowds of tourists at Honolulu International Airport. A Hawaiian Airlines (HWI) agent at a departure gate, lit up when she saw him. "How are you?" he asked her.

Down on the ramp, baggage and cargo-handlers zipped by on carts and waved at Dunkerley. He smiled and waved back, stopping to talk to other staff along the way under the midday sun. Anyone watching would never guess the 48-year-old Brit was (HWI)'s Chief Executive Officer.

One of the advantages of running a smaller airline, Mark said, is he knows almost all his staff personally. The employees at the airport greeted Mark warmly instead of tensing up as most people might when the top man in the company makes an appearance.

(HWI) employs 4,500 people, a small number compared with other American carriers, but Mark gave his staff credit for changes at the airline which have come a long way since 2003, when he joined the company. In March of that year, (HWI) filed for Chapter 11 bankruptcy following a decade of losses, only two months after Mark joined as President & Chief Operating Officer. It emerged from bankruptcy protection in June 2005, with Mark at the helm.

(HWI) has not looked back. (HWI) carried a record 8.4 million passengers in 2010, up +42% from the numbers it chalked up a decade ago.

Since 2003, it has consistently made an operating profit year on year, even in 2008 when USA airlines made an operating loss overall in the wake of the financial downturn. Overall load factors on an annual average basis have not gone below 80% LF since pre-2003. (HWI) also looks to have kept its passengers happy. It has come top among USA carriers for on-time performance every year since 2008, and is the largest provider of flights between the USA mainland and Hawaii.

Referring to the events of the past 5 years as "dramatic changes," Mark made it clear (HWI) has left the days of 2003 far behind. Instead, (HWI) has spent the past 5 years working on its brand, a task Mark said was necessary to become the carrier of choice for tourists holidaying in Hawaii. "Much of the last 5 years has been spent marketing ourselves, not as a traditional holiday airline with a sort of brand of being cheap, and almost unprofessional. Instead, we worked very hard to recognize that people visiting Hawaii are coming here because they have an expectation of a fantastic vacation. They are spending what, in many cases, is going to be the 2nd-largest item of their annual household budget," he said.

Delivering a product on board that feels cheap would have been "unhelpful," in the words of Mark. "Somebody who is spending thousands of dollars to bring their family out on vacation doesn't feel that they are cheap. We worked hard to deliver a product on the airplane that recognizes the hard work and sacrifices that our customers have made just to be able to get on the airplane to come to Hawaii."

(HWI)'s standing today as the largest provider of flights between the USA mainland and Hawaii is an indicator that his employees have accomplished an "unparalleled good job of recognizing our customers and treating them as valuable guests of ours", said Mark.

In the inter-island market, Hawaiian dominates with a +80% market share and it operates >150 daily flights between the Hawaiian islands with its fleet of 717s. With its position firmly entrenched at home, (HWI) is now embarking on its next stage of growth (long-haul traffic from Asia).

It comes as no surprise that (HWI) is wooing the Asian traveler, with growing affluence and consumer spending in the region. Japan contributes the most international visitors to Hawaii, with 1.2 million visitors arriving by air last year, according to statistics from the Hawaii Tourism Authority.

(HWI) has taken pains to cater to its large segment of Japanese customers, providing on board Japanese meals and reading materials, and training staff in cultural sensitivities. For example, check-in staff are taught to present travel documents to Japanese travelers with both hands. (HWI) launched a daily service to Tokyo Haneda airport last November, when it opened to international scheduled flights, and began services to Osaka this July 4 months after the devastating earthquake and tsunami hit Japan and sent travel demand plummeting.

Mark, who said (HWI) continued to operate its Haneda flights with the same frequency in the aftermath of the earthquake, believes the decision was important to signal the airline's commitment to its top international passenger market. "The view we formed then was that there'd be a short-term slowdown in demand, but relatively soon after, demand would come back (and that's exactly what happened). Today, we are fully back at the level of demand that we saw before the earthquake," he added. Load factors to Tokyo are consistently in the 80s, said Dunkerley, who called the service a "healthy route".

(HWI) has pushed to operate a 2nd flight to Haneda, which it originally applied for but did not get. Delta Air Lines (DAL) and American Airlines (AAL), which won slots to fly to Haneda, were granted dormancy waivers by the USA Department of Transportation this year to temporarily suspend their Haneda flights because of falling demand.

(HWI) had proposed a 2nd daily flight to Haneda following the granting of the dormancy waiver to (DAL), but the (DOT) has said it did not find (HWI)'s case compelling enough to forego the benefits of (DAL)'s Detroit TO Tokyo service.

Tokyo aside, Mark said (HWI) plans to launch flights to other Japanese cities but declined to be more specific, saying there was "a lot of filling" of many of its existing markets. "We see opportunities in all of the countries we already serve: Japan, South Korea, the Philippines, Australia. I wouldn't say we are done in the markets we already serve."

It is no surprise that China, a rapidly expanding market, wooed by airlines the world over, also features on the list of destinations (HWI) is eyeing. China Eastern Airlines (CEA) recently started flights to Honolulu, but you are unlikely to hear Mark announce half a dozen new routes to China any time soon. He pointed out that it is not easy for Chinese tourists to visit the USA (tourists must obtain a visa that comes with a $147 application fee and must provide evidence showing they will return to China).

"It's important that we enter that market when the conditions are right. For those conditions to be right, it requires some real improvement in the processing of visas for Chinese nationals wishing to visit the USA. There's an enormous amount of room for improvement," he said.

Members of Hawaiian's congressional delegation are hoping to influence a change, said Mark, who added that the issue of visas for Chinese tourists is a "well-known problem". He pointed out that after Korean nationals were able to visit the USA without a visa, visitor numbers doubled.

(HWI)'s push into Asia will be supported by its new A330-200s. It will operate 5 by the end of 2011 and take 13 more through to 2015. (HWI) operates the new wide bodies to Tokyo, Seoul Incheon and some destinations on the USA West Coast.

Mark expects to deploy the A330 to Osaka as well, some time in 2012, when it will add 4 more airplanes. (HWI) is also likely to operate the A330 to Sydney, which it currently serves with the 767, and to other destinations on the USA West Coast.

In addition, Mark has set his sights on the USA east coast, where Hawaiian has yet to operate. "Unsurprisingly, we are looking at some of the big population centers on the east coast," he said. These include cities such as New York, Washington DC and Boston. He made it clear (HWI) does not plan to begin flights any time soon to secondary USA cities. "Traditionally, the cities in the middle of the USA, that have enough population to support non-stop services, are hubs for some of the big airlines (your Chicagos, Denvers, Dallases). We are a lot more interested in large cities that aren't the center of someone else's hub."

Despite more A330s joining (HWI)'s fleet in the next 4 years, Mark plans to decide in the next year if (HWI) should acquire even more A330s or extend the leases on some of its existing 767s. (HWI) plans to retire 12 767s from now until 2015, which means its wide body fleet will grow with a net increase of one airplane. Ideally, Mark wants it to grow by one or two airplanes a year.

Options on the table include leasing more A330s or extending the leases on the airline's younger 767s that were built in the early 2000s, Mark said. More likely is the possibility of bringing in other 767s from the market because of the costs, he added. "There's still a bit of a hole to be filled." Looking further ahead, (HWI) expects to broaden its network when the 1st of 6 A350-800s it has on order joins the fleet in 2017.

There is some uncertainty surrounding Airbus (EDS)'s commitment to its smallest A350 variant and several customers have already switched orders to the A350-900 variant, but Mark reiterated (HWI)'s commitment to the A350-800, saying (HWI) believed the airplane still meets its needs. He does not, however, rule out the A350-900. "Time moves on, we will be refreshing that analysis to see if that's [the A350-800] best for us [but] I don't think it will be soon, it's not pressing," Mark said.

Back home in Hawaii, Mark will also have to make decisions in the years ahead on the replacement of its 717 fleet (the workhorse on the airline's inter-island flights). (HWI) will operate 18 717s by the end of 2011, including three it leased from Boeing (TBC) this year. (HWI) disclosed in June that it purchased the remaining 15 off lease from Boeing Capital (TBC).

Mark explained the decision to lease the extra 3 717s was not driven primarily by growth. "Inter-island [flights] as a market is not really growing. The reason we acquired 3 more, was to better distribute seats at the times of day when people really wanted to travel." As the 717s get older (they were built in the late 1990s and early 2000s) maintenance requirements also rise, which means the airline will need more airplanes to operate the same schedule, he said.

With the 717 out of production, (HWI) has to hunt for a suitable airplane with the same capabilities, a search Mark said will be interesting. "The 717 works extremely well for what we do, extremely high cycles every day. We get, in many instances, 16 cycles a day out of a single airframe. The 717 is a very, very well-built, strong airframe and it handles the type of flying we do better than any other airplane could."

He expects (HWI) to launch a formal replacement exercise as early as 2014 and to replace the entire 717 fleet by the end of 2020. The airline is paying close attention to emerging airplane programs such as the Bombardier CSeries and the Mitsubishi MRJ regional jet.

"[The question is], is there going to be an airplane that is optimized for the kind of flying we do? What we do is very unusual flying. A lot of new technology is going into improving the range, but range is not of particular value to us," said Mark.

With several high-profile mergers dominating the USA airline industry in past years, it is natural to ask (HWI) if it sees itself playing a role in the consolidation story. "The most important thing we can have is to have a choice (a choice to say yes if it makes sense to us, and no if it does not). In order to do that, you have to run a profitable, successful standalone business," Mark said.

Driving that logic is Mark's recognition of where (HWI) stands as an airline. "We are a destination carrier. What we do is that we sell Hawaii as the destination of a lifetime to our customers who live outside the island. Geography, and the small size of the local population, mean that we will never be a network carrier.

"We will never be generating a lot of traffic from Hawaii to destinations outside (and that's fine). That gives us a very clear focus of who our customers are and what we have to do to take care of them," he says.

Mark reckons the carrier has achieved what it set out to do in those uncertain days following emergence from bankruptcy protection in 2005. It is now time to take the airline to the next step, a task Mark feels the carrier is ready to execute.

"In the last 5 years, we said we were going to solidify the inter-island market and become the number one player for the USA West Coast to Hawaii. We've done both of those things. In the next 5 years, we need to look after our existing business exceedingly well and we need to expand into Asia (and make that not a dream, but a reality)."

Mark Dunkerley has led (HWI) from bankruptcy in 2003 to solidify its role in both inter-island and flights to mainland USA markets. Now he is setting his sights on Asian expansion to help drive the next stage of the airline's journey.

Despite being only 48, one can consider Mark a veteran in the business. He started at Miami International Airport before moving to British Airways (BAB), where he went on to become head of the Latin America & Caribbean market. Mark then went behind the scenes at Worldwide Flight Services, which provides services such as baggage-loading and airplane refueling. Before joining (HWI) in 2003, he worked at Belgian carrier Sabena (SAB), before it went bankrupt in the wake of the "9/11" attacks.

Mark appreciates the advantages of working in a smaller airline such as (HWI). “There is a real immediacy in the organization, we are not that far away in the boardroom from the ramp, from what’s going on day to day. There are not too many layers. What is noticeable is the amount of communication between departments. It’s better in a small company [because] size creates barriers,” he said.

Mark tries to keep those barriers low by getting to know his staff outside work. Every Sunday, he gets in the cockpit of a 1929 Bellanca CH-300 Pacemaker (the first airplane operated by (HWI)) and flies employees and their families over Hawaii. Ask Dunkerley why, and he seems hesitant to give himself credit. “First of all, I enjoy it. It’s a fantastic airplane. If you are interested in flying an airplane that is [as] wonderful as this, it’s quite unusual. Secondly, it gives me great pleasure to have an opportunity to spend a little time with employees away from the workplace, in a different kind of setting. It strengthens the relationships with my employees.”



Jon, who has served as Hawaiian (HWI)’s interim (COO) since October, oversees all Flight Operations, In-flight Services, Customer Service, Maintenance & Engineering, and Operations Analytics.

Shannon was promoted from VP Controller and Senior VP & interim (CFO) to fill a vacancy left by the departure of (CFO), Scott Topping. In her new role, Shannon has oversight of all of (HWI)'s Financial Planning, Accounting, Treasury, and Compliance functions.

Previously, Avi served as VP Marketing from 2011 to 2014, and VP Revenue Management & Schedule Planning from 2008 to 2011. He joined (HWI) in July 2007 as Senior Director of Transformation. Prior to (HWI), he worked at The Boston Consulting Group in New York City and Paris, France, and at Christie’s Auction House in New York City.

Avi is a graduate of Brown University, earning a B.A. with honors in Old World Archaeology and Art. He went on to earn his M.B.A from the University of Pennsylvania’s Wharton School of Business.

* "Airways" High Flyer Interview with Avi: Chris Sloan, Senior Partner and Managing Editor of Airways Magazine, conducted this interview with Avi on Friday, February 2, 2018, in Honolulu.

AW: What were the reasons (HWI) chose to bypass the leading Premium Cabin seat manufacturers Zodiac and Rockwell Collins for the new lie-flat product? Was it the supply chain issues or was there more to this risky decision than that?
MS: It was a riskier path to take than going with some of the more established seat manufacturers. There were 2 things: 1 was we were relatively late to the game in having lie flat seats. We knew if we were going to come late we wanted to bring in something that was of the next generation and really quite unique. The 2nd was that most lie flat seats brought to market are designed principally for business travelers because that’s what the market looks like. We have a very different customer base because we primarily carry leisure people. Finding a lie flat seat that works for leisure was really quite difficult because most of those existing seats are designed to separate as much as possible from the person adjacent to you. They’re mostly for people traveling by themselves but 70% of our guests are traveling with someone else and want to share the experience. For us, it was largely about finding a seat platform that could be really well tailored to the needs of our guests.

AW: Please elaborate on the real estate and seat design. Even though this is 2-2-2 configuration, the feedback is the hard product has a similar direct aisle access as 1-2-2.
MS: You’re right, and I don’t really think we can take credit for it. Optimares did a terribly brilliant job with that design, but that captured our imagination as we are a leisure carrier, and density is still really important to what we do. We have many more couples traveling in our business class and 2-2-2 was a less daunting proposition for us than it would be for a more business-focused traveler where you get more single travelers. At the same time, when I’m traveling with my better half, I don’t like having to climb to the aisle from the window seat. The seats are designed with a slightly different configuration that uses the space very efficiently. It lets us create an access to the aisle. Having that ottoman was very important to us to create a really comfortable lounging position because while it’s great to be able to lie fully flat, on my flight’s lounging is actually the most important position. We really want to do is have a platform that created a wide range of ergonomic options for people that were really comfortable to lounge in and we found that Optimares had good solutions with the geometry of the seat.

AW: Nearly 2 years after its roll-out, what’s the status of the retrofit?
MS: We’re down now to our last retrofit so we’ll be done in about a month.

AW: There’s been an epidemic of aircraft delivery delays and retrofits resulting from cabin suppliers. How has the Optimares experience been? Are you on the schedule you where you expected to be?
MS: We had something that took us a little bit off schedule, but they were more issues in our network. We deliberately shifted the line down but for the most part from a supply chain standpoint, it has been positive. There are challenges with bringing a new seat to market and it was certainly a risky process. But on the other hand, there are great things about working with a startup to bring something new to the market. It was a collaborative process. We adapted a lot as we went through the design certification process and came out with something quite unique.

AW: As in the case of Air New Zealand (ANZ), does (HWI) actually have any sort of patent or (IP) ownership on the seat design and has it been adopted by others?
MS: Our design process is very bespoke to our needs. We don’t have any ownership over the Optimares design. They have other clients in the pipeline but I’m not sure I’m in a position to talk about who they are. We hope in the long term it’s a commercial success.

AW: The irony is that (HWI) boasts eye popping margins amongst the highest in the world, yet operates against extreme competitive and cost headwinds in a high-cost place. What’s the secret to that, and the revenue premium you’re able to achieve?
MS: In terms of the overall revenue premium, there are some (DOT) data points where we can get a measure of that. We have in the last couple of years generated a revenue premium over our competitors on the same route in the low double digits. In a business with margins like ours, that kind of premium makes a real difference. It’s a combination of having a great brand product really well tailored to the needs of our specific guests and having front line staff who do an absolutely fantastic job. All of those things add up to guests being willing to pay more to fly with us for what are really emotionally significant trips generally in people’s eyes. So in that respect, we are doing really well in terms of revenue generation. We are seeing really significant improvement in the performance of our of our premium class product. Extra comfort has been a really terrific performer for us in that leisure travel niche. So we think we have a product dialed in really well for our core consumer and because we are so focused on our specific niche more effectively than many of our competitors who have broader networks.

AW: Like other players in the industry, (HWI) is moving away from embedded (IFE)’s with tablets and into streaming products for customers’ bringing their own devices (BYOD). In the A330, though the embedded seat product still exists after the retrofit, and oddly that’s still a superior experience in terms of the content offerings. What’s the thought process behind this?
MS: Part of it was we were reconfiguring the front part of the cabin and we weren’t going to make a choice about all of the seats in the back of the cabin at that point, but the tablet model doesn’t really scale well to the back of the aircraft. Having in-flight entertainment on the markets on which we operate the A330, which are largely international long-haul markets, still is really a core part of the guest expectation. For the international market, we don’t see the same generation of people bringing their own devices, so having embedded (IFE) was still the right choice for that market.

As we look at the lie flat seats, there was sort of philosophical reasons why we might not want to have embedded (IFE) there in terms of obsolescence and making sure we had the best possible technology at all times. We looked at lots of different options with embedded (IFE) too, and 1 of the things we found was that it compromises openness and space in the cabin and compromises a number of positions in which you can lounge. And, so it was a technology decision, but it was also an ergonomics decision to create the best most flexible use of space in that seat. You can be sitting up during dinner and using the tablet arm to hold your tablet. When I reclined into sleep mode but not all the way, I had to take the tablet out and hold it a little closer to my face. We found over time that people have different ways of wanting to experience (IFE) and the tablet solution in a lie-flat seat where you have a different range of motion makes a really big difference.
The new A321neo’s forego any seatback embeds in favor of streaming to (BYOD)’s.

AW: What’s the philosophy there?
MS: It’s basically coming from the same place. We spend a lot of time thinking how our guests use the aircraft and what we see on our flights to the west coast which is the mission of the A321neo. Many of our guests have their own devices loaded with their own content. Streaming has real weight advantages on the aircraft in terms of the technology.

AW: (HWI) is the only non-(LCC) USA mainline carrier that offers no in-flight internet connectivity on any of its flights. Even on routes to Hawaii, your competition is adding this. Though you all are leisure based, do you expect to offer this eventually?
MS: You know I do. I think it’s been less critical for us because of the leisure focus, and frankly over time, the satellite coverage over the Pacific has not lent itself to a really great connectivity experience, so it’s something we don’t want to invest in until we are sure we can deliver really great connectivity experience to our guests. I think even for leisure customers, it’s an expectation on aircraft that you’re not going to be disconnected from the world for a couple of hours. So, I think competitively it will be important that we have that product at some point. We spend a lot of time right now trying to understand the needs of our specific guests; how we build a connectivity solution if there is one out there that’s really well-suited to the needs of our Hawaii focused leisure guests and that works well with our network which is heavily concentrated over the Pacific.

AW: (HWI) maintains its own lounges in the major Island home markets and offers access via partnerships in Asia. However, there is no lounge access anywhere on the mainland USA. Your direct competitors offer this. What are (HWI)’s plans in this regard?
MS: It’s something that we look at periodically. It is generally less of an expectation, unless you subscribe to a lounge product by one of the carriers to have lounge access, and we don’t necessarily have the scale, even in our big West Coast cities, to justify a lounge presence. Internationally, we use partner lounges, because it is an expectation that comes with a premium cabin seat and in Honolulu, we have the scale to support a lounge product, but we are always making sure what is competitive with the expectations in each individual market.

AW: You’ve had an unusual career trajectory from revenue management and scheduling to marketing, brand, and product. How has this helped you prepare for your current role?
MS: It could’ve been a testament to how badly suited I was for revenue management. It was a terrific opportunity and I came to (HWI) at a time when they were going through a great deal of change in our network and had the opportunity to lead the revenue management network planning function through some of that change. Revenue Management is such a fantastic area.

AW: You spend the time looking at the data and there is a willingness for people to choose Hawaiian Airlines (HWI) over our competitors and over time I realized that a lot that was happening was not because we were so smart in Revenue Management, but I think we are and we do good work there. But, because we were delivering this really great experience. Moving to Marketing gave me a great grounding in the commercial airline industry but also gave me this interest to go out in the more intangible aspects of brands that drive consumers to choose us. It’s great to be able to work on both sides of the spectrum.

AW: Or is it just more fun sampling the Mai Tais and flunking out of math?
MS: I can’t complain about the Mai Tais, it’s an important part of my job. There’s a great balance in my day between spending a lot of time looking at data. It’s a really diverse work day.

I certainly had no problems being served Mai Tais at 7:00 in the morning, they’re strong by the way. I don’t know what kind of math you’re doing with that.

After 2 it’s really hard to get up. The Mai Tais are a great example of how we approach products. We decided that we were going to serve the Mai Tai unlike anyone else’s. We spent a bunch of time to come up with something that was really the kind of Mai-Tai that we would drink here (not super overly sweet with a nice a nice bit of punch with great natural ingredients and something that we were really proud of and proud to serve. And, it didn’t taste like other airline Mai Tais).

AW: You joined the airlines as Senior Director of Transformation. With Mark Dunkerley’s retirement and Peter Ingram’s ascension to (CEO), can you elaborate on this journey and the next phase?
MS: It’s been a great privilege to go through this part of my journey. I try not to speak for Mark but I think what he saw in (HWI) was an airline with fantastic people. And that was true 15 years ago and it’s true today. What they needed was a leadership team that would work in service of those front line people to give them the tools to go out and do they do well every day. And I think that is the philosophy that will go beyond Mark’s tenure here. Something he has created and really taught the leadership team. That’s our job. We have the best people in the industry. As management every day, we need to make sure that they have the tools and resources and the support to take care of our guests. And if we do that, I think that the business largely takes care of itself.

AW: We asked Mark and Peter this question and now we put it to you? Hawaii is a boom market and the competition is gunning for you? United (UAL)’s boosting capacity by 20%, Southwest (SWA) is coming and entertaining the idea of inter-Island flying, (ANA) with A380s, and JetStar and AsiaX (ASX) are confronting you in your prime gateways in Asia, and that’s just for starters. In the past, airlines put some of their worst hard product and a mediocre soft product into the leisure-focused, low yield market of Hawaii? How do you intend to face the threat?
MS: You made a really good observation about carriers for a long time put their worst product on leisure routes. It’s a real vindication of our belief in the potential of leisure travel that we’re seeing some of the competitive entries that we’re seeing today. I’ve been here for 10 years and this is my 3rd wave of competitive capacity increase over time. And we’ve always come out stronger. We are more focused on this market and better tailor our solutions than anyone else. But it’s also really important that we continue to innovate. We have the A321neo coming online which is important for us. We do a lot of work to advance our practice of e-commerce and digital marketing, and getting technology in the operation to make sure that what is a very competitive business and gather every source of advantage we can. It really is just a great service, knowing our customers as well as we possibly can.

Jay most recently served in various Financial Planning & Analysis and Transportation Finance roles for Amazon in Seattle. Previously, he spent 13 years with the Alaska Air Group, where he held Manager, Director, and Vice President roles.



Stephen Simmons formerly served as an independent aviation consultant for domestic and international carriers, prior to which he worked at Northwest Airlines (NWA) for 16 years.







In his new role, Avi will continue to oversee (HWI)’s Brand Management, Advertising, Promotions, Direct Marketing, Online Experience, Product Development, Consumer Affairs, and Reservations departments.







Peter is responsible for the selection, training, management and supervision of all Hawaiian Airlines (HWI) pilots (FC), as well as consulting and coordinating with fleet captains on all technical, procedural and operational matters.








John most recently served as an officer at (CWB) Consulting, where he led multi-year Information Technologies (IT) strategies for JetBlue Airways (JBL), Southwest Airlines (SWA) and Bank of Montreal.




In this role, Vicki is responsible for overseeing all elements of the "HawaiianMiles" program and the growing line-up of other Hawaiian Airlines (HWI) travel-related products such as vacation packages and premium seat offerings.


Sayle is former (CFO) & VP at Koko‘oha Investments Inc/MidPac Petroleum, LLC, where he directed all accounting, financial and administrative matters.


YESSO TEKERIAN, SENIOR DIRECTOR ENGINEERING (2002-09) (yesso_tekerian@hawaiianair.com).





Darle was a good friend of mine when we previously worked together in Engineering Management at Continental Airlines (CAL), when they were based in Los Angeles (LAX) in the 70's.

Jun will oversee the Sourcing, Negotiation & Purchasing of Airplane Inventory, Supplies and Services.




Rock is responsible for managing Hawaiian Airlines’ corporate real estate interests, including its business relationships with domestic and international airports, lease negotiations, concessions, properties, projects & construction, facility planning & design. He was a former senior real estate manager at the Walgreen Company and regional director for (CVS) Caremark Corporation, and Longs Drug Stores California, Inc.

Gai will be responsible for overseeing all commercial activities and product distribution in Hawaiian Airlines (HWI)’s fast-growing Australia and New Zealand markets.


Beau is responsible for maintaining the quality and performance of (HWI)’s current fleet of 48 Airbus (EDS) and Boeing (TBC) airplanes to ensure reliability and safety.






(fuke@hawaiianair.com). (717 INTEGRATION MANAGER).

In this role, Chris is responsible for overseeing and developing (HWI)’s route network as it expands into new destinations.


Eric was formerly with United Airlines (UAL), where he spent more than >8 years in Pricing, Inventory & Revenue Management.

Timothy is responsible for managing (HWI)’s new projects and renovations, as well as the administration and maintenance of facilities company-wide. He has over >25 years of pre-construction and construction management expertise, having most recently served as Director at Cumming Corporation, Hawaii.








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