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Americaan Samoa Air Service Marketing Study-Phase Two Report

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Americaan Samoa Air Service Marketing Study-Phase Two Report American Samoa Air Transport Marketing Study Phase Two Report August 5, 2014 i American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 Contents Recommendations ............................................................................................. i Executive Summary ......................................................................................... 8 Acknowledgements .......................................................................................... 8 Background for Recommendations .................................................................. 8 Task 5 and Task 6: Approaches to Expanding Air Services and Recommended Strategies to Provide Air Transport Services Capacity Needs ................... 19 1. Honolulu and the Mainland ...................................................................................... 20 2. Hawaiian Airlines and Competitors in the US Airline Industry ............................... 22 3. Apia, Manu'a and Savai’i.......................................................................................... 40 4. Neighboring Pacific Islands beyond Samoa ............................................................. 45 5. New Zealand and Australia ...................................................................................... 49 6. Changes in Federal Laws or Regulations ................................................................. 51 7. American Samoa Airports ........................................................................................ 56 8. Immigration .............................................................................................................. 58 9. Security ..................................................................................................................... 60 10. Tourism Development .............................................................................................. 60 11. Tuna Canneries ......................................................................................................... 62 12. Passenger Survey – Pago Pago International Airport ............................................... 62 ii American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 Airline Contacts and Industry Conferences ................................................... 64 Phase Two Meetings ...................................................................................... 65 Glossary .......................................................................................................... 67 Disclaimer ...................................................................................................... 69 Tables Table 1 Top Origin and Destination (O&D) Markets from PPG – YE March 2014 .............. 20 Table 2 Top US Passenger Airlines by Operating Revenue – YE March 2014 .................... 23 Table 3 Pago Pago-Honolulu Passengers, Seats and Passenger Load Factor (PLF) .......... 24 Table 4 Pago Pago-Honolulu Average Passenger Fares .................................................... 25 Table 5 Monthly Passengers on the PPG-HNL Sector ........................................................ 28 Table 6 Pago Pago-Apia Passenger Services ....................................................................... 40 Figures Figure 1 Largest Detailed NHPI Groups in 2000 and 2012 ............................................... 21 Figure 2 Honolulu Nonstop Route Network ...................................................................... 22 Figure 3 Seasonality on the PPG-HNL Route .................................................................... 30 Figure 3 Honolulu Widebody Routes Operated by Hawaiian Airlines .............................. 32 Figure 4 United Airlines’ Honolulu Network .................................................................... 34 Figure 5 Alaska Airlines’ Honolulu Network .................................................................... 35 iii American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 Recommendations The success of air service development for American Samoa will depend on individuals in the ASG taking responsibility for specific tasks and taking responsible action. Our recommendations for ASG action are summarized in this matrix, with more background provided in the next section. We stress the importance of placing responsibility for leading implementation with the Agency best able to provide the special skills required to deal with airlines and federal agencies relevant to that task, be it the Governor’s Office, the Attorney General, Department of Port Administration (DPA), Department of Commerce (DOC) or the American Samoa Visitors Bureau (ASVB). i American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 American Samoa Air Transport Study – Recommendations Summary Agency Action Categories Benefits & Risks Time Line Participation 1. Hawaiian Airlines Improved frequency Governor’s office Immediate and Increased local traffic DOC Continuing Recommended Actions: Added discount fares DPA a. Continue the dialogue and strengthen the relationship Better travel options for Airport Division b. Capitalize on HA willingness to work toward 3rd weekly residents and visitors flight Increased activity and c. Continue working with Hawaiian and Polynesian Airlines revenues for the Airport to develop APW-PPG connections on nights of Hawaiian Risk: Incentives are not service (see Recommendation 9) guaranteed to produce d. Offer incentives for discount fares and added desired results frequencies Risk: Connecting flights may be unprofitable 2. United Airlines and Alaska Airlines Lay groundwork for future Governor’s office Ongoing service with right aircraft DOC Recommended Actions: when airlines are ready a. Continue dialogue to keep attention on PPG as a Risk: Could raise conflicts potential new route in the Pacific with improving Hawaiian b. Include these airlines in development of incentive relationship proposals ii American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 3. Charter Proposals Could give residents and Governor’s Office The 2013 proposal visitors better travel options DOC has been Recommended Actions: None Risk: Expensive failure is DPA withdrawn but Conduct careful due diligence on any group seeking likely another may be assistance and on its plan. Consider likely reaction of Risk: Direct harm to ASG presented Hawaiian Airlines relationship with Hawaiian 4. Cabotage Benefits: Possible new Governor’s Office Recommendation services through PPG (airlines Congressman is not to undertake Recommended Actions: None have shown no interest) Faleomavaega’s a legislative Consider carefully the adverse effects of any legislative Risk: Harm to relationship Office initiative almost initiative to exempt American Samoa from US laws barring with Hawaiian DOC sure to fail foreign airlines from carrying passengers and cargo on Risk: Could affect other domestic itineraries. legislative priorities 5. Support Tourism Development Benefits: The ASG’s goal of Governor’s office In the ASG’s budget increasing tourism is DOC cycle, the ASVB Recommended Actions: Review budget for Visitors Bureau promoted by the efforts of American Samoa should submit and consider increasing it, recognizing that tourism the Visitors Bureau with a Visitors Bureau detailed plans for infrastructure in the Territory is limited. small staff and budget (ASVB) expanding activity Risks: A clear plan is needed and cost-effective Work on long-term plan for development of hotels and to minimize risk of waste uses for increased resort facilities to attract tourists. budget authority iii American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 6. Inter Island Airways Benefits: More assurance of Governor’s Office Immediate and service to Ta’u and Apia. DOC ongoing ASG should do all it can to support Inter Island Airways, the GDS presence will inform off- DPA only air carrier based in American Samoa island travel sellers about the Airports Division air links and encourage Actions: tourist visits to American a. Assign staff liaison to Improve communications with Samoa airline executives Risk: Increased revenues b. Explore what assistance ASG can offer to help Inter should more than cover the Island improve operating reliability and develop flight cost of GDS listing but are not display and sales through the GDSs (global travel agency guaranteed automation systems) 7. Manu’a Airways Benefits: Air service for Ofu Governor’s Office Immediate and and improved service for DOC ongoing Recommended Actions: Investigate startup delay and Ta’u. DPA provide assistance as needed. If service is not running by Risk: Failure to take action Airports Division October 15, urgently explore alternatives and seek another undermines the ASG’s operator. purpose for transferring its BN2 aircraft to the airline. iv American Samoa Air Transport Marketing Study Phase Two Report, August 5, 2014 8. Polynesian Airlines Benefits: Increased airport Governor’s Office Immediate and activity and improved travel DOC ongoing Recommended Actions: Assign staff liaison to Improve choice for AS residents. communications with airline executives; encourage Risks: None development of interline connections with Hawaiian Airlines. Work with Polynesian on effort to launch Tonga service. 9. Pago Pago International Airport – Connecting Capability Benefit: Improve Governor’s office Should follow effectiveness of Hawaiian-
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