Issues & Trends – August 2011
Honolulu services: Strategic ‘pincers’ JQ and HA
STRATEGIC Airlines aims to capture Jetstar and Hawaiian Airlines in a pincer movement by offering direct flights to Honolulu ex Brisbane and Melbourne.
The low cost Jetstar and full service Hawaiian operate their flights to Honolulu ex Sydney meaning Brisbane and Melbourne residents are forced
to fly to Sydney to join them.
“We believe Australia’s second and third largest cities are big enough markets to justify their own non-stop direct flights to Honolulu,” said the carrier’s chief commercial officer Damien Vasta.
The twice weekly A330 services are scheduled to commence in December with one-way economy fares of $399 ex Brisbane and $499 ex Melbourne.
“We have made Honolulu holidays competitive with Bali, Fiji, Vanuatu and New Zealand,” said Vasta.
Wholesalers Creative Holidays and Infinity are currently working with the carrier on packages which, in Creative’s case, will lead in from $1059 ex Brisbane for three nights.
Vasta expects its list of wholesalers to expand once Strategic has loaded its Honolulu fares into GDSs. The airline has experienced a temporary hiccup in this process because of restrictions imposed by the US Department of Transportation.
Ahead of the appearance of its Honolulu fares in GDSs early next month, Vasta said the airline has done everything it can to facilitate agent access to its inventory via its website, including provision for dedicated agent log-ins and commission tracking.
“Agents have been very patient. We don’t want them to have difficulties booking our fares but it has been out of our control,” said Vasta.
Despite the temporary difficulty, he reported an “overwhelmingly enthusiastic” response by the industry to the new services.
Meanwhile the airline has displayed considerable pragmatism with a decision to walk away from its previous position of offering full service fares in favour of a low cost carrier approach similar to rivals Jetstar and Virgin Blue.
Strategic’s economy fares now cover “a seat and a bag” and the opportunity to buy ancillary services – meals, drinks and inflight entertainment – on board.
“The feedback from our passengers is that they prefer to have a low fare and choose their own inclusions during the flight; it helps with their holiday budgeting,” said Vasta.
For a period, Strategic will be carry-ing passengers who have purchased both full service and “seat and bag” fares but Vasta assured full service will continue to be supplied to those who have paid for it.
By the end of October the airline will have carried its last full service economy passenger and that will pave the way for the long-anticipated name change from Strategic to Air Australia.
In addition to economy class, Strategic/Air Australia will also offer what it calls a “luxurious” business class. One way business class fares to Honolulu will be $1299 ex Brisbane and $1399 low season ($1799 and $1899 high season).