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Airlines Accused Of Teaming Up On Illegal Deal

3 Airlines Could Be Discouraging Service On Smaller Carriers

POSTED: 11:22 am HST June 22, 2004
UPDATED: 12:05 pm HST June 22, 2004

The federal government will be asked to investigate air service to Molokai and Lanai.

The question is whether Aloha Airlines, Hawaiian Airlines, and Island Air have set up an illegal deal which will discourage other airlines from serving Molokai and Lanai.

Pacific Wings has just four small planes and has focused on little-served routes between Hilo and Kona, and Kahului and Hilo. It also served Hana, Kalaupapa and Kamuela with a subsidy from the federal government.

The owner of Pacific Wings said he stopped serving Molokai and Lanai when he learned that Hawaiian and Aloha airlines had both arranged to team up with Island Air. He said their purpose was to make it very difficult for a small carrier like Pacific Wings to build a big enough passenger base to make money going to those islands.

Molokai residents are very concerned about Island Air being their only scheduled airline, especially after a month of rescheduling problems.

On Tuesday, angry passengers stranded for more than eight hours on Lanai took pictures that showed Island air was down to two planes when it used to have five. Two planes had mechanical problems and one is being refurbished on the mainland. Island Air’s president admits its been a bad month what with lots of minor mechanical and electrical problems, but he said it will be bringing on more planes this summer and its new owner is committed to improvement.

Hundreds of Molokai residents have switched to the three planes of the Molokai Lanai shuttle – it’s not luxurious, but it’s cheap and reliable, they said. Its owners said they won't expand unless an outside investor backs them up.


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