Hawaiian Airlines scraps paper tickets

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Hawaiian Airlines scraps paper tickets

HONOLULU (AP) =97 Hawaiian Airlines will end use of paper tickets =97 and=
 its=20
popular interisland flight coupons =97 to cope with an economic crisis it=20
calls the worst in the industry's history, the company announced Wednesday.=
=20
The elimination of the coupon program =97 which has been around for about 20=
=20
years =97 takes effect on Monday, but existing tickets will continue to be=
=20
honored. And travel agents and other resellers will continue to offer the=20
tickets until supplies run out. Calls placed to officials at Aloha Airlines=
=20
were not immediately returned. But a spokesman for Aloha told local=20
television stations that the company was reviewing its coupon system. The=20
effect of Hawaiian's changes on fares will be mixed. Coupons typically sold=
=20
for $72. Published interisland fares on most of the airline's routes start=
=20
at $66 if bought at least one week prior to departure; $70 if bought at=20
least three days before take off; and $75 without any advance purchase=20
requirement. But for two-segment trips =97 such as from Kauai to Maui, which=
=20
require a stop on Oahu =97 and for trips to Lanai and Molokai, the changes=
=20
will mean steeper fees.

Coupons could be used on any of the airline's routes, allowing consumers to=
=20
travel anywhere within the islands for about $72 each way. Now, trips to=20
Lanai and Molokai and two-segment trips will start at $81 and go as high as=
=20
$90 each way. For some travelers, the end of coupons could mean a $36, or=20
25 percent, increase for a round-trip. "Coupons are the legacy of another=20
era in Hawaii," said John W. Adams, Hawaiian's chairman and CEO. "They've=20
outlived their purpose. The trouble is, that system has never produced=20
profits in the interisland market and, in everyone's best interest, the=20
time has come for us to change that."
Interisland coupons allowed customers to escape fees for skipping scheduled=
=20
flights. Keoni Wagner, a spokesman for Hawaiian Airlines, said customers'=20
abuse of this contributed to problems on some routes. Wagner said some=20
customers double-booked flights on Hawaiian and on Aloha Airlines, its main=
=20
competitor, but would only show up for one. Other customers,

Wagner said, simply were no-shows for their reservations. Now such=20
travelers face a $15 fee for each segment of travel that requires a=20
schedule change. Customers who insist on paper tickets will pay a $25 fee.=
=20
For years, the airline industry has been shifting to nonpaper ticketing.=20
Northwest and American now charge a fee for the traditional,=20
magnetic-striped tickets. Some upstarts like JetBlue only offer electronic=
=20
ticketing. Adams said the overhaul of Hawaiian's ticketing system is=20
necessary as the airline faces major financial problems. "The problem of=20
financial sustainability in the interisland air transportation system has=20
become urgent," Adams said. "In the middle of the worst economic crisis our=
=20
industry has ever seen, we are working to achieve a delicate balance=20
between providing the services our island communities need and protecting=20
our financial stability." Officials at Hawaiian Airlines said a conversion=
=20
to ticketless operations is nearly complete in its mainland and South=20
Pacific operations. Similar changes were planned for interisland routes=20
later this year, but economic troubles motivated the airline to expand the=
=20
system sooner.

The new system will reduce costs related to the purchase, handling,=20
processing, distribution and storage of paper tickets, Wagner said. He said=
=20
the new system better allows the airline to control its inventory,=20
motivating customers to book earlier and allowing Hawaiian to change prices=
=20
depending on the number of bookings a flight has. It was not immediately=20
clear what impact Hawaiian's new system would have on travel agents.=20
Monday's announcement could spur a rush of customers looking to stock up on=
=20
the last of available coupons. Coupons were provided at a reduced rate to=20
resellers, including travel agents. Some agents charge a fee for booking=20
travel arrangements. Whether an end to the coupons could prompt more=20
travelers to book flights directly through the airline remains to be seen.=
=20
Hawaiian Airlines also announced on Wednesday that it would introduce new=20
technology later this year that allows customers to check in for flights=20
from their home or office. There are already self-service check-in kiosks=20
for the airline at Honolulu International Airport, and Hawaiian plans to=20
install such kiosks at all its airport locations in the next six months.



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