SFGate: Go! Airlines Debuts, Sparking Airfare War

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Friday, March 24, 2006 (AP)
Go! Airlines Debuts, Sparking Airfare War
By JAYMES SONG, Associated Press Writer


   (03-24) 00:06 PST Honolulu (AP) --

   A new interisland carrier Thursday began selling one-way fares on its Web
site for $39, sparking an airfare war in Hawaii.

   Phoenix-based Mesa Air Group Inc. said its new "go!" airlines will start
flying between Honolulu and Lihue, Kahului, Hilo and Kailua-Kona on June
9.

   Mesa is one of the nation's largest regional carriers with 182 jets, 5,0=
00
employees and annual revenues of $1 billion. Flying to over 170 cities
under the America West Express and other brand names, it is the largest
company to enter Hawaii's exclusive interisland market, dominated for
decades by Hawaiian and Aloha airlines.

   "It is strategically the most important endeavor that we've embarked upon
since I've been with the company," said Jonathan Ornstein, Mesa's
president and chief executive.

   Hawaiian and Aloha both recently emerged from Chapter 11 reorganization
and are responding quickly.

   The night before Mesa's scheduled news conference in Honolulu, Aloha and
Hawaiian announced they were selling a limited number of $39 seats through
April 7 for travel June 9 through Sept. 30. That's nearly half the usual
lowest fares.

   Go! plans to use six 50-passenger Canadair RJ 200 aircraft initially and
replace them with larger jets as the carrier builds market share.

   Mesa, which operates Mesa Airlines, has been eyeing Hawaii since 1992. It
is the latest interisland startup to compete with Hawaiian, Aloha and two
smaller companies that operate turboprop planes, Island Air and Pacific
Wings.

   Hawaii Superferry Inc. also plans to connecting the islands starting next
year using two high-speed catamaran ferries.

   ___

   On the Net:

   Go! airlines:

   http://iflygo.com ------------------------------------------------------=
----------------
Copyright 2006 AP

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