Hawaii Tourism Authority Steps Up

On March 31 2008, Aloha Airlines flew its last passenger flight and laid off 1,900 workers.  Customers with flights booked on Aloha Airlines were stuck if they were not completing their roundtrips by that day.  Then on Wednesday April 2nd 2008, ATA Airlines shut down operations, stranding more passengers.

Tens of thousands of people were affected by the shutdowns and there were not enough flights on other carriers to get people where they needed to go.   Aloha Airlines and ATA handled 15 percent of the air traffic between the West Coast and Hawaii prior to their shutdowns.

Pat the Hawaii Tourism Authority and Hawaiian Airlines on the back and say "Nice Job!" 

The Hawaii Tourism Authority (HTA) put up $5 million in funding to hire charter flights and help stranded travelers get home.  Hawaiian Airlines made some of its jets available for the charters with reasonable airfares.  The HTA subsidized the flights by paying about $100 of the $300 cost per seat.  Passengers may have lost money if their airfares on Aloha and ATA were not refunded, at least the HTA and Hawaiian Airlines did what they could to help out.

The HTA is an agency established in 1998 by the State of Hawaii to advocate our tourism industry.  The agency is funded by a portion of the Hotel Room Tax.   The HTA's funds are expended on advertising, encouraging sporting events, operating the Hawaii Convention Center and special services, such as subsidizing airfares at a time like this.

If you've ever worked in management, you know that you can't please all of the people all of the time.  Amazingly, I haven't heard one complaint (so far) about the HTA spending $5 million tax dollars on this mission.  I think the HTA made a timely and smart decision.

Don't let the airline setback prevent your visiting Hawaii.  Airfares may rise but that's economics!  As of today oil reached $108 per barrel.  The airlines have to raise their fares to keep from going bankrupt, let alone make a profit.  If you're planning a trip to Hawaii, just make it a long one so you get your money's worth from the airfare.  And if you are thinking about buying property here, you know who to call! (See the link below if you don't).

Mike Bates, Hawaii realtor

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