Business Report: The economics of an airline choosing a new dest - Hawaii News Now - KGMB and KHNL

Business Report: The economics of an airline choosing a new destination

(Image: Hawaii News Now/file) (Image: Hawaii News Now/file)
HONOLULU (HawaiiNewsNow) -

On Web boards like airlines.net, airline groupies and airline professionals meet for wild speculation about what new route an airline might choose. The wild speculation is typically a back-and-forth between romantics who think a route would be cool and insiders who shoot it down based on their knowledge of the economics of the situation. For lurkers like me it’s an education, subject to confirmation by non-anonymous insiders whom I trust. 

As an example, look at this possible route for Hawaiian Airlines, or someone else, flying Honolulu to London.  It would be a 14-hour flight, longer than London to Grand Cayman, or Bangkok.  Fuel costs could be enormous. An occasional charter filled with Hawaiian cruise customers could make a profit, but a regular scheduled flight would have to fly really, really full at premium fares. 

And remember, a factor in any new route is the fixed costs at the other airport, where the landing fees alone might be a deal breaker.

Copyright 2016.  Hawaii News Now.  All Rights Reserved.

Powered by Frankly