Last Updated Mar 24, 2008 11:47 AM EDT
- Since Mesa Air Group's go! entered the interisland market, airfares have plummeted
- Oil is ridiculously expensive
- Flights from Hawaii to the Mainland need a lot of oil
Everyone said there wasn't room for three airlines flying the main routes in Hawaii, and they are now proving to be right. Fares are way too low right now, and the only way that will change is if an airline goes away. While I know that most people in the islands would be happy to see Mesa Air Group's go! be the one to disappear, they have slightly deeper pockets than Aloha, and they may succeed in outlasting the airline. Oh, and Aloha's 737-200 aircraft that fly the interisland flights? Not much interest in those - maybe Anheuser-Busch will buy them to make beer cans.
This isn't likely to be the last time we see an airline file for bankruptcy this year. People kept calling for consolidation in this industry, and it looks like me might have that. It just won't be achieved via mergers.