I agree with most analysts and pundits that the announced merger between Mesa Airlines' Go! and Shuttle America's Mokulele Airlines is a good thing for both firms. In the very competitive interisland market, this was the smart thing for the two smaller firms to do. They will be taking on their major rival, longtime market leader, Hawaiian Airlines.
The result of the merger will be a new airline branded Go Mokulele.
Mokulele Airlines' three Embraer ERJ 170 twinjets will leave the Hawaii marketplace as Shuttle America and their parent firm, Republic Airlines will re-position those aircraft to other markets in the mainland that they serve.
Questions remain how many if any of the employees at both airlines will be laid off as a result of the major. Many of the employees at Mokulele Airlines are former Aloha Airlines people who blame Mesa/Go for running their old firm out of business in 2008.
Go Mokulele will operate their jet service with Go's CRJ 200 50 passenger jets. I assume Mokulele will still be in business running their smaller Cessna aircraft to the state's smaller airports.
One thing for sure is that the sometimes ridiculously low interisland airfare prices that were offered while Go and Mokulele were competitors will disappear. The current advertised low intersiland fare is $49 each way.
Flying interisland will cost conusumers more as the combined airline faces less competition with each other.
Hawaiian Airlines will remain the market leader, Go-Mokuelele will be the #2 jet airline in the market with Island Air filling out the share by concentrating on the smaller island markets with their bigger than a Cessna Dash 8 prop planes.
The one thing that I regret is never flying on Mokulele's ERJ 170 jets. The planes are set to leave Hawaii by next month. I already have a trip booked with Hawaiian.
Additional Links
- Joining Forces, StarBulletin.com
- Hawaii Interisland Carrier Mokulele to Merge with Go, Honolulu Advertiser
- Mokulele, Go to Combine Operations, Pacific Business News
- Mokulele and Go Airlines to Merge Wednesday, KGMB 9 News
