Bill Boyer, CEO of Mokulele Airlines, got his start in the industry as a baggage handler for Alaska Airlines. But during the time he was hefting travelers' bags, he also managed to not only open a couple of coffee shops and a day spa but also to dream up a bit of in-flight entertainment gadgetry that enabled him to eventually own his own carrier.
"I started my career in Seattle and was involved in customer service [at Alaska Airlines] for 17 years," Boyer said. "During that time I invented the DigEplayer and eventually invested the profit into Mokulele. I always knew that I wanted to build my own airline."
The DigEplayer is a portable, battery-operated device that enables travelers to enjoy movies, TV programs, video games and music. According to Boyer, the DigEplayer is used on 72 airlines as well as on Amtrak trains and several European railways.
Thanks in large part to the money he made selling the company that developed the DigEplayer, Boyer's dream of owning an airline came true in 2005, when he acquired Mokulele Flight Service.
Today the Big Island-based company, now known simply as Mokulele Airlines, maintains a fleet of three Embraer E-170 jets. The airline also operates seven 208B Cessna Grand Caravans, including a dedicated freighter.
Mokulele flies 85 daily departures to seven cities across Hawaii, and, along with its commercial passenger and interisland cargo services, it continues to offer Big Island volcano tour flights.
The jet age
In the fall of 2008, Mokulele made headlines when it announced plans to begin interisland jet service operated by Shuttle America, a subsidiary of Republic Airways. The news of a locally owned airline filling some of the void left by the bankruptcies of ATA Airlines and Aloha Airlines was well received throughout a community hit hard by the carriers' absence.
"This is very good news for the economy," Hawaii Gov. Linda Lingle said of the announcement. "While providing the people of Hawaii an additional choice in interisland service, this agreement also means new job opportunities, and that is very welcome news for our residents."
And for Boyer, the arrangement seems to have been more than just the beginning of a potentially lucrative business deal.
"The whole state felt the pain of those [ATA and Aloha] closures," he said. "Our ramping up of services created staffing needs that allowed us to hire many former Aloha and ATA employees.
"They bring such a strong sense of aloha to our counters and onto our planes every single day, and the response from our passengers has been so positive," he added.
In fact, according to Mokulele, demand has been so great that the carrier bumped up the introduction of its Honolulu-to-Kahului, Maui, jet service from mid-March to early February. Demand for the inaugural flight was so high that Boyer gave up his own seat.
But the news hasn't all been rosy for Mokulele. On Feb. 17, the airline was again making headlines, this time for defaulting on a $300,000 payment to Republic that was part of the air service agreement between the two companies. Boyer said payment was made on Feb. 18, and at press time, he said he was confident the company would make good on another payment scheduled for Feb. 25.
"We're shifting things around and trying to get things up and running," Boyer said regarding the delinquent payments. [Editor's note: In a Pacific Business News article Feb. 20, Republic said it would assume responsibility for Mokulele jet service if the carrier defaulted.]
All's fare
In the highly competitive Hawaii interisland air travel market, talk of fare wars, and the detrimental effect they've had on companies such as Aloha in the past, seems to keep coming up. Early in 2009, Mokulele offered $28 one-way fares on its new jets, with service to Honolulu, Lihue, Kona and Maui, and through Feb. 22 was offering similar trips at $38, prompting some comments of concern in the industry.
But Boyer said Mokulele is simply trying to "get people to fly on our planes so that they can see how great our new service is and want to book tickets in the future."
"Airlines cannot sustain themselves on $28 fares; it's impossible," he said. "But having competition -- and Mokulele's presence in this market ensures that -- helps keep prices reasonable."
Visit www.mokuleleairlines.com.