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Experts: Interisland Price Hikes Coming

Industry Analysts Say Fares Could Soon Cost $90

POSTED: 10:09 am HST April 2, 2008
UPDATED: 10:27 am HST April 2, 2008

Experts say interisland travelers should now prepare for higher fares with Aloha Airlines' departure from the market.

They said the fares should be similar to those prior to go! Airlines entered the market.

Glennie Forsythe said she got sticker shock when she called Hawaiian Air for a flight back to Kona.

"I said, 'OK, what's the fair?' She said, '$183.' I said, 'Where I am I going, Las Vegas?'" Forsythe said.

She eventually found a $55 seat, but the first quote could be an omen.

Several experts said Hawaiian Airlines now holds a near-monopoly with go! and Island Air serving only a small portion of the market. Airfares could jump above $90 quickly, they said.

"You are back to a two-airline system again," University of Hawaii Travel Industry Management School Dean Emeritus Chuck Gee said.

The Pagoda Hotel depends on kama`aina travelers and its manager is afraid that higher interisland airfares will mean less business.

"We are in down cycle of the industry, and if the rates go up it might affect the operations," Pagoda General Manager Edward Saunders said.

"The first thing to go is discretionary travel. You may still do some, but you are not going to do as much of it," Gee said.

It is also possible that Aloha's departure might lure another large carrier to Hawaii and the airfare wars could start all over again.

So when will fares rise? Hawaiian Air said its current $49 fare is good for reservations made until April 7. That is all they would say.

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