Mokulele Airlines hereby o ers a proposal to provide Essential Air Service at Kamuela. The proposal is for period of four years.
The Mokulele Story Founded in 1994 by Hawai‘i native Kawehi Inaba, When Southern Airways took over Mokulele, a Mokulele has been the preferred neighbor commitment was made to rebuild the airline’s island-hopper for kama‘aina for more than two reputation in the marketplace. Superior on-time decades. Mokulele ies more than 100 ights performance, improved customer service, and per day and is the Essential Air Service provider increased community involvement were early for each of the Hawai`i airports that participate goals attained throughout the rst year of the in the program. transition. Those improvements were intended to launch Mokulele on a growth trajectory not Mokulele was founded on the need for reliable, seen in the airline’s rst 25 years-- but no one safe, and a ordable air service to Hawai`i’s rural was prepared for that plan to be derailed by a communities. Today, over 25 years later, Mokulele world-wide pandemic! is still loyal to that mission.
In early 2019, Mokulele Airlines was acquired by Southern Airways Corporation, the parent company of Southern Airways Express. Southern Airways is one of the largest operators of Essential Air Service routes in the country, yet also serves many major markets. “Voted the best Specialty & Leisure Airline in the USA” — Trip Advisor, April 2019
By combining the best attributes of both companies (and by using cash ow from Southern’s substantial mainland operation) Mokulele, combined with Makani Kai, has been able to continue serving every one of its Hawai‘i airports--something that no other airline based in Hawai‘i can boast.
The Proven Model of Success Southern Airways and Mokulele subscribe to the business model that success in modern aviation comes Mokulele moved almost 75,000 pounds of groceries for free to the island from scale. A carrier cannot provide consistent and of Molokai when COVID forced the closure of one of the island’s major reliable service to two or three cities in a regional grocery stores. footprint. It needs multiple aircraft, dozens of pilots, and full support services to be able to handle the daily Providing Stability for the Future of operational issues that come with operating an airline. Inter-Island Air Service It is for this reason that Mokulele and Southern submit Essential Air Service bids only in areas where multiple The COVID-19 crisis and the new governmental communities can share resources such as spare planes protocols put in place to control it fundamentally and extra pilots. Further, Southern Airways believes changed Hawaiian aviation. It became clear in the that all communities bene t when multiple routes can spring of 2020 that the only way to preserve the share the infrastructure of a common hub and commuter airline industry and to provide common carrier. uninterrupted service for the smaller communities would be for the two commuter airlines in Hawai‘i Mokulele is the only carrier that has the size and scale in to join forces. STRONGER TOGETHER was the theme Hawai‘i to consistently deliver a reliable air service when the brand merger between Mokulele and product. Makani Kai was announced in June. Sales, Marketing, and Distribution Through the 24-hour customer service center and interline ticketing and baggage agreements with American Airlines and Alaska Airlines, Mokulele has the Kamuela (Waimea) ability to make travel between the islands, as well as to the mainland, seamless and easy. In addition to being able to book travel through the customer service center and online at MokuleleAirlines.com, Mokulele tickets are also available for purchase on all major travel sites such as Travelocity, Orbitz, and Expedia.
Committed to Safety Southern and Mokulele sta two pilots on every ight. Southern’s interline partner, American Airlines. In spring 2018, Southern Airways became an interline partner of American Airlines. This means that traveling from Hawai`i to any American Airlines destination now tops any other air travel option.
NEWFOUNDLAND PRINCE GEORGE ST. JOHN’S
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SOUTHERN’S ADDITIONAL INTERLINE PARTNER Mokulele’s partnership with American Airlines allows for flights from the mainland to Waimea to be purchased on aa.com Bringing Sustainable Avaition to Hawai`i Mokulele and Southern Airways, the world-wide leader in modern aviation electri cation. In 2017 Mokulele Airlines announced a new partnership with the Los Angeles-based aviation technology company, Ampaire. Ampaire and Mokulele are currently in the testing phases of the world’s rst hybrid-electric aircraft designed for passenger service. In December 2020, the joint venture completed a month-long demonstration project for green aviation in Hawai`i. Ampaire’s hybrid-electric plane ew Mokulele’s route between Kahului and Hāna dozens of times. The demonstration ights were the rst in a series of mock-operational ights that the two companies will be completing during the research and development phase.
While Mokulele intends to continue its use of the Cessna Grand Caravan for its Waimea service, it is highly likely that during the next contract period that the engines on the aircraft will be converted to hybrid-electric engines—providing a pathway for Hawai`i and Waimea to lead the world in aviation electri cation. Kamuela (Waimea) Proposal Weekly Round Trips MUE-OGG 12 Total 12 Operating Revenues MUE-OGG $414,000 Total Operating Revenues $414,000 Operating Expenses Flying Operations $419,502 Fuel and Into Plane $125,000 Maintenance $202,316 Aircraft $270,908 Indirect $129,621 Total Operating Expenses $1,147,347 Operating Loss $733,347 Pro t Element (5%) $57,367 Compensation Required $790,715 Compensation per Pax $132 Compensation per Departure $640
Annual Seats 11,124 Annual Passengers 6,000 Load Factor 54% Departures 1,236 Average Fare $69 Completion Factor 99.00% Compensation Required Year 1 $790,715 Compensation Required Year 2 $810,482 Compensation Required Year 3 $830,744 Compensation Required Year 4 $851,513
Proposed Schedule
Waimea to Kahului Kahului to Waimea Depart Arrive Depart Arrive 6:20 A.M. 7:05 A.M. 11:55 A.M. 12:40 P.M. 1:20 P.M. 2:05 P.M. 6:20 P.M. 7:05 P.M.
The above schedule has proven to be successful in addressing the community’s needs. Upon selection, Mokulele will work with local leaders to make any requested schedule adjustments.
Marketing Plan Status Vendor Item Projected Spend Proposed Local Media Print, outdoor, broadcast $7,500 Proposed TBD Enhanced Digital $5,000 Proposed Community Sponsorships TBD $5,000 Proposed Customer Appreciation Party Live Airport Event $7,500 $25,000 Southern has included in its indirect operating expense a direct marketing spend of $25,000.