NEWS: Regional Airline Heads for the Islands

So what's an regional airline to do after doubling its fiscal year profits? Start an island hopper in Hawaii of course. Odd? Maybe, especially when you hear that its got nothing to do with island dominating Hawaiian or Aloha Airlines. Regional operator Mesa Airlines did indeed double its profits and is planning to use that success to back a new venture to operate six 50-seat jets purely between the islands. Regionals normally partner with a larger airline to provide short haul service and thus feed the larger airline's operation. But Mesa will start a completely independent operation and go head to head with Hawaiian and Aloha. Click Read More!

Inter-island flights have been a big money maker for Hawaiian and Aloha airlines. According to some it is this operation that helps the two airlines support their flights to the mainland that have traditionally been financial losers. In other words, I don't expect Hawaiian and Aloha to just lay down on this. I would expect them to compete fiercely to keep this business. To do so will knock down profit margins on these flights but I think the dynamic duo will see that as a necessary evil.