Travel Weekly's Hawaii E-Letter: August 5, 2002

ALOHA AND HAWAIIAN airlines asked the Transportation Dept. to give them antitrust immunity through Oct. 1, 2003, to coordinate and reduce capacity on interisland flights. The immunity would not give the airlines permission to coordinate or discuss flight schedules and fares, although the agreement does provide for a "balancing payment" if the cuts were to give one of the carriers a "disproportionate" share of traffic.

THE CARRIERS, which submitted their application to the DOT on July 31, said the agreement also includes a guarantee that capacity coordination would not eliminate service on any city-pair. Without the short-term immunity on capacity, the airlines said, the interisland flights "will continue to be unprofitable and thus unsupportable." Neither airline earned a net profit on its overall interisland operations in 1999 or 2000, even though those were two of the most profitable years for the U.S. airline industry, they said.

MEANWHILE, Hawaiian and America West will begin code-sharing and frequent flyer program reciprocity Oct. 11, with customer bookings beginning in September, the carriers said on Aug. 1. America West's code will go on Hawaiian flights linking America West's Phoenix hub with the islands of Hawaii, Oahu, Maui, Kaui and Molokai. The service to the island of Hawaii will be nonstop, with connecting flights to the four other islands. Hawaiian said the partnership will provide "significant passenger feed" from 40 U.S. cities to the airline's new daily nonstop Phoenix-Honolulu service, which begins Oct. 11 on 767 aircraft.

HELI USA AIRWAYS, the helicopter sightseeing company, is expanding its operations in Hawaii. The Las Vegas-based firm is adding a sunset flight on Kauai, where it runs daily tours from Princeville Airport, and plans to offer service on Oahu next April, and possibly on Maui by Nov. 1 of this year, John Power, vp-sales and marketing, said. The operator entered the Hawaii market with Kauai service about 18 months ago. The new sunset flight is set to start Aug. 15.

FAIRFIELD RESORTS acquired the Kona Hawaiian Village on the Big Island from Kona Hawaiian Vacation Ownership, a Hawaii-based timeshare developer. The 33-acre property in Kailua-Kona is timeshare giant Fairfield's first resort in the islands. It will be operated by Outrigger Enterprises, with sales and marketing operations being integrated into Fairfield. The management contract is the first collaborative effort between Fairfield and Outrigger under their new marketing agreement. Fairfield said it expects to integrate Kona Hawaiian Village into its points-based ownership program, FairShare Plus, within the next 90 to 120 days.

ASTON HOTELS & RESORTS Hawaii is rewarding agents with a $25 check for each materialized booking of at least five nights this fall, and doubles that to a $50 booking bonus at the Aston Waikiki Beach Tower. The offer is valid for new bookings made since June 17, with a minimum five-night stay at an Aston Hawaii property between Aug. 20 and Dec. 22. Participating wholesalers include All About Tours, Apple Vacations, Blue Sky Tours, Classic Custom Vacations, Fun Sun, Happy Tours, Hawaii World, Holiday House, Liberty/Gogo Worldwide Vacations, MLT Vacations, Pacific Escapes, Pleasant Holidays, Runaway Tours, Suntrips and Travel Impressions. To receive the cash bonus, agents must complete and submit booking forms within 14 days of the guest's departure from the Aston Hawaii property. Booking forms may be obtained and submitted via the Web at Agents also may send a fax to (808) 931-1350.

OHANA KEAUHOU Beach Resort on the Big Island's Kona Coast is offering agents a special $50 rate, marking the property's first year as part of the Ohana Hotels & Resorts chain, a budget brand of Outrigger Resorts. The rate is valid for up to three nights for stays through Dec. 18. Agents who take advantage of the offer will receive an automatic upgrade to an oceanview room, chocolate honu (turtles) upon arrival and a USDA-inspected anthurium or orchid plant to take home as a memento. Additional nights are available at Ohana Hotels' regular 50% agent discount. For reservations or information, call Ohana Hotels & Resorts at (800) 462-6262, via e-mail to [email protected] or visit the Web

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