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Kahului Airport Airline Competition Plan

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Kahului Airport Airline Competition Plan • KAHULUI AIRPORT AIRLINE COMPETITION PLAN KAHULUI AIRPORT, MAUI, HAWAII STATE OF HAWAII DEPA.~TMENT OF TRANSPORTATION AIRPORTS DIVISION DECEMBER 2000 KAHULUI AIRPORT AIRLINE COMPETITION PLAN STATE OF KAWAU O&PA.~T OF TRANSPORTATION AIRPORTS DIVISION Honolulu International Airport 400 Rodgers Boulavard, Suite 700 Hor.olulu, Havaii 96819 • subcieeed b er: y Macs.;da, P. Ai ports Adoinistrator partQent o! Transportation State ot Hawaii Oece.:lbe:r 2:000 Kahului A~rport Airline co=petl t l on Plan Introduct ion Kahului Airport io located on the north central shore ot Maui , northeast ot tho town of Kahului. The Airpor t e ncompasses approxicately 1,447 acres ot land and is owned and oporated by the Sta't.e ot Jiawaii as part ot the ata.t•wide airporto ~yctem. Under the Wendell H. Ford Aviation Investment and Rotor= Act tor the 21•t century, large and &edi-.m hub a.irpor-cs with aore t.han sot of ~hair traffic served by one or two c,arriero need to sub~ i t a airline co~potit1on plan . Kahului Airport, as a cod1ua hub airport, meets this criteria wi th Hawaiian Airli nes and Aloha Airlines carryinq over SOt of the paaocnqer trattic. Kahului Airport ia currently aorved by 8 major and national, 3 toreiqn tlag, 6 commuter, and 2 all-cargo carriere, as s hown on Tabl e 1. Approximately 72% ot tho passenger trattic is carried by Aloha and Hawaiian Airlines, which includes Aloha Airlines s~sidia ry Island Air. Tabl• 1 - Airlines servinq Kahului Airport Airli ne Classitication Air Canada F'oreign Aloha Airlings National American Airlines Ma jor American Trans Air National canada 3000 Foreign Delta Airl ines Major Hawaiian Airlines Nat.ional Royal Airlines Poreiqn Ryan tnterna't.ional National Trans world Airlines Ma j or United Airline& Mojor Federal Express All-Cargo Kitty H3\oo'k cargo All-Cargo (Suapondod Service 4/28/00) United Parcel Service All-cargo Big Island Air Co=.outer Call Air Com'Out:ar Circle Rainbow Air com.auter Commercial Flyer co;n.muter Island Air Commuter Pacit i c Wings Commuter -1- • X&bulu i Ai rport Ai r line Competition Pl an ~ vai l ability of Cates an4 Re l ated Facilit i es There are twenty terminal qates with loading bridges at Kahului Airport (Figure 1 - Terminal Gate Configuration). All gates are owned and controlled by Airports Divis ion. Gate assignments are controlled by Airports Division ' s Maui District Airport Operations Control Unit. Attached Appendix 1 - Aircraft Parkinq and Gate Assignments Policy is the procedure and policy used by Airports Divi sion tor gate assignne.nts. Aa atatod in the Aircraft Parking and Gate Asaiqn=ent Policy, Airports Division retains tot41 con~rol ot the terminal qates at all tiDes, assiqnir.q aircraft pr~ily based on signatory status, operational trequoncy. aircraft 51Ze and passenger load, air carrier preference. ope~ational sanctions. and other secondary c riterions. Gate usage is conitorod by Airports Division to obtain che b~ac utilization ot available qates . There are two distinct typo ot air carrier operetions using the torminal gates - interisla nd and overs eas . Interisland operations provideo air oorvlce wi thin th• Hawaii an Islands . lntorisland flight di8tancas trorn Kahului Airport is shor t , varying from 25 Diles to 202 miles . Narrow• bodiod aircraft, primarily Boeing 737's and McDonnell-Oougla9 OC-9 ' &, are used . Due to the nature ot tho Hawaiian Islands, i nterisland flights a re the pri~ary, and often only, passenger link between islands. OVerseas operations provides air servi ce to the continental United States and Canada. Fli9ht distances are long, 2,400 Diles and greater . Generally, wide-bodied aircraft, ouch as McOOnnel l­ Oouqlas DC-lO's, Lockheed L-lOll's, Boeing 767's, Boainq 777- 200'•• and la~ge narrow bodied aircraft~ such as Boeing 757's, are used. Aircrat~s used tor these two type ot air carrier operation& attects gato aasignmonts . As shown in the Gate Assignment Table i n Appendix 1, while aircratt used tor interisland operation• can be accommodated at all gatos, those uaed tor overseas operation• aircrafts can ' t. These gate rostrictions will aftoct the aircraft mix that can be &CCOJilCiodated. Aa •tated above. there are t~enty teroinal qates with loading bridqes at the airport. Nine gates are used tor over•aas operations {Cates 1. 5, 7, 2J, 27 1 29, 33, 35, and 39) and seven qat•s are used ror interisland operations (Gates 9, 11. 13, 15, 17, 19, and 21) . 8ecau•e ot the space needed at adjacent gates to acco~odate large aircraft, cates 3, 25, 31, and 37, are seldOQ used. On the averaqo, there are 110 overaeas and 485 interisland departures tor a total of 595 departures p~r week. For the =onth of August 2000, there were 484 overseas and 2142 - 2- Kahulu1 Airport Airline Competition Pl an interisland departures for a total of 2626 departures per month. Gate utilization is twelve overseas daparturesjgate per week (53 departures/gate per month) and sixty-nine i nterisland departures/gate per week (306 departuresfqace per month) . Gate utilizat i on i s high , especially for interi sland operations. Because Airports Division controls gat e assignments, t .he airport has flexibility in accommodating new gate demand by air carriers. However, due to high gate utili zation, there is an upper l imit on gate capaci ty . While Airports Division have accommodated all previous legiti mate gate requests, the potential exi sts that once capacity is maximized, no additional gate request can be accommodated. Patterns of Air service on a scheduled, non- stop basis, service is provi ded to four interisland markets (Honolu lu, Kona , Hilo, and Lihue) and seven overseas markets (Oakland, Los Angel es, san Francisco, Saint Loui s, Vancouver, Mi dway - origin only, and Phoeni x - destination only) . In addition, there arc charter flights serving three oversea~ markecs (Vancouver, San Francisco, LOs Angeles) . Table 2 , derived from the August 2000 Mainland Gate Assignments used by ~irportG Division's Maul District Airport Operations Control Unic, shows markets served by airlines using Kahu lui Airport. Table 2 - Markets served b y Airlines ~irlinc Routes Ai r canada Vancouver Aloha Airlines Honolulu, Kona, Hilo, Lihue, oakland American Airlines Los Angeles American Trans Ai r Los Angeles, San Francisco, Midway (Origin) , Phoeni x (Destinati on) Canada 3000 vancouver Oelta Airlines Honolulu, Los Angelos Hawa iian Airlines Honolulu, Kona, Hilo, Lihue, Los Angeles Royal Airlines Vancouver Ryan International Los Angeles, san Francisco (Or igin) , Kona (Destination) Trans world Saint Louis United Airlines Los Angeles, San Francisco, Average numbers of fliqhts are eighty-five i nte~ island and - 3- Kahul ui Airport Ai r line Competition Pl an sixteen overaeas tliqhes per day. LOs Anqeles, San Francisco, Xidvay (Orl9ln). and Phoenix (Destination) are currently beir.q served by a lov-tare carrier. Awerican Trans Air. currently~ Oakland, Saine LOuis~ ~idvay, and Phoenix are DArketa served by ono carrier. In ehe past year. one aarkot, Atlanta, has been drop~d and three •arkets, SAint Louis, Midway (Origin), and Phoenix (Deatinatlon) , have been adde4. In additional, tvo 4dditional markets aro planned to be added this year~ Dallas­ Forth worth in Nov•mber 2000 and San Jose in OeceDb•r zooo . several ot the above markets can be considered small communities, with a population under 500,000. on the over•eas rout·ce, bOth Oakland and Saint LouiG have a population un4er 500,000 . On tho intorl•land routes, the populations ot Hilo, Kona and Lihue falls under eoo.ooo. ~ha ottiee ot the Assistant Secretary tor Aviation ano International Attairs publish Air t•are oata Intoraation for Airport coapetition Plans. This intor~tlon ia available ae h~tp:JJoatp~ob.dot.qovJavia~ion (Airport Co~petltion Plan Oat~). Table ) shows ~he average fare, trip langth and aarket share. by earr•er, at ~ohului Airport tor 1999, suaaarlzod troa Airpore Co~po~ition Plan - Fare Data. Airport-carrier Su..ary. Table 3 - Air carrier Pa~e/Mar k •t Share Average ,.ri p Market Ai r carrier PA-s~eng ers Pare LOnQtb Share Interline Tran,tcr (99) 145,180 SZZ7.U ),6l4 3\ Amorican Airltnoa (AA) 100,810 $279.31 ],444 2' Aloha AlC'linee (AQ) 1 ,689,220 s 38.59 112 Jn Delta Alrllno=s (DL) 110,050 $216.43 3,186 n uavaibn Alrllnoc (HI\) 1,499,680 s 70 .40 454 3H tlorthwest Air Lines ("W) 54,620 5325.03 3,373 H American Trone Alr (TZ) 237,650 $141.70 2, 535 5' Unitod Alrlinos: (UA) 611,050 S254 . 79 2,800 lH Aa atate4 under Av~Llability of Cat•• and Rolotod Facilities, there are two distinct type of air carrier operations at Kahului Airport - lnter1sl4nd and ov•rseas. Tho airfare level eo~9arison need• to look at th~co two cype of operation~ ••parately. ~he priaary interisland car~iers are Havailan and Aloha Airline~ . Aloha Airlin•• avora90 taro i~ 1999 va• $)8.59 tor a ~rip length -·- Kahului Airport Airline Competition Plan of 112 mi les while Hawaiian Airlines was $70 . 40 for a trip length of 454 mi les . However, in 1999, Hawaiian Airlines served both t h e interisl and and overseas market while Aloha Ai r line only served the i nterisland market. With the interisland trip length varying between 90 to 202 miles, it' s apparent that Hawai ian Airline's tara data includes both overseas and interisland rates. Table ' - Interisland City Pairs Analysis by Carrier, extrapolated from Airport competition Plan - City Pair Data by compet itor (10' Market Share) , shows the average fare for carriers servi ng the interisland market are $38 .
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