TOKYO and HONOLULU (HawaiiNewsNow) - Hawaiian Airlines and All-Nippon Airways have signed an agreement leading to selling tickets on each other's flights and sharing revenue.
The code share alliance was announced simultaneously in Tokyo and Honolulu on Wednesday, Hawaii time, after word of the negotiations spread through financial news media.
The announcement referred to "an agreement to establish a commercial partnership... to explore bilateral cooperation in areas such as code-sharing, frequent flyer programs, and cargo," suggesting that actual terms have not yet been settled.
"Both airlines will start discussing the details of cooperation hereafter," the joint news release said.
All-Nippon Airways currently flies to Hawaii from Tokyo's Narita International Airport, but on Oct. 31 it begins Honolulu service from close-in Haneda airport, where it has a domestic hub. A code share alliance could allow ANA to sell tickets on Hawaiian interisland flights to get ANA passengers from Honolulu to, say, Hilo for a visit to Volcanoes National Park.
"We are pleased to welcome Hawaiian as a new entrant to Japan," said ANA President Shinichiro Ito in a statement. "Hawaii is the largest market between Japan and USA by passengers carried, and is an important leisure market for ANA."
Hawaiian Airlines currently has no service to Japan but on Nov. 17 launches service to Haneda. A code share alliance could allow Hawaiian to sell tickets on ANA flights to get its own passengers from Tokyo to other points in Japan.
Hawaiian CEO Mark Dunkerley told Bloomberg News in Tokyo he hopes to have an agreement concluded within four months. The announcement of a framework for negotiations came out shortly after Bloomberg reported that talks were going on.
In January, Hawaiian will also launch service to Seoul, and it has already struck an expanded codeshare agreement with Korea Airlines.
In a codeshare agreement, airline X can sell tickets on specific flights of airline Y as if it operates those flights itself, sharing an agreed-upon amount of revenue with the latter carrier.
Codeshares can extent the reach of an airline at low cost, especially to markets that would be uneconomical to serve with its own flights.