$19 Fare in Hawaii Could Have Its First Victim
September 28 2006 07:25 am
As you might imagine, other airlines operating in Hawaii were not happy when new entrant go! introduced a $19 fare between the islands. The insanely low fare caused a ton of heated discussion and threats of lawsuits, and it may now claim its first victim. Island Air has returned one of its airplanes and did not take delivery of 2 more scheduled Q400s because it said it could not compete in a $19 environment. Island Air isn’t going out of business tomorrow, but it’s the first sign that the marketplace is changing because of low yields.
