Mokulele hasn’t been doing all that well lately. It’s struggling to maintain any semblance of reliability and profitability. So news that Mokulele seeks subsidies for Lanai service should come as no surprise, then.
The struggles facing Mokulele are well-documented. Blaming parts shortages, high costs, and difficult marketplace dynamics, the Southern Air subsidiary has suffered from atrocious on-time performance.Things have, unfortunately, become untenable for the communities (Lanai and Molokai) that rely on the airline the most. And despite their best efforts, it doesn’t seem like much has or will change. In fact, it seems like things are getting worse.
Mokulele Seeks Subsidies for Lanai Service
The Civil Beat reports that Mokulele submitted a 90-day notice this past December indicating that it would like to cease unsubsidized service to Lanai. As you’d imagine, in addition to this indicating that Mokulele seeks subsidies for Lanai service, it also infers that the carrier doesn’t want to continue operating on the island if it doesn’t receive government aid.
Mokulele’s Chief of Staff, Keith Sisson, cites stagnant demand and inflation as the primary drivers for this decision. Specifically, while Ohana by Hawaiian and Makani Kai Air left the market, Larry Ellison’s Lanai Air means that Mokulele can no longer rely on wealthy visitors traveling to either of the island’s Four Seasons properties for additional revenue. Though, they’re having trouble serving just the local population, so that argument seems a bit counterintuitive
.
At any rate, as Mokulele seeks subsidies for Lanai service, it’s worth mentioning that Lanai Airport does qualify for Essential Air Services subsidies. It’s just that carriers haven’t needed the subsidies, until now. And that, Sisson states, is why they filed the notice to terminate unsubsidized service. Sisson claims that Mokulele never intended to stop serving Lanai – they just wanted help paying for that service.
However, that notice began a process in which the Federal Department of Transportation solicits proposals from different airlines for both subsidized and unsubsidized service to Lanai. And if another airline undercuts Mokulele then, well, no subsidies for them. Then, what?
Potential Competition?
Proposals for the DOT’s solicitations aren’t due until March 22. The same Civil Beat article cited above states that airlines don’t normally submit their proposals until the due date, so I guess we’ll see what comes in then. What we do know, though, is that Massachusetts-based Cape Air has been sniffing around.
Reportedly, officials from the company traveled to Hawaii last Monday, and met with Maui County officials and residents to discuss what they’d be looking for in terms of service to Lanai and Molokai. We don’t know much about the meetings, though Maui County Councilman and Lanai resident Gabe Johnson reports that Cape Air officials hold him that it would be a privilege to serve the islands.
It’s worth noting that Cape Air currently flies a fleet of older, smaller, six-seat, twin-engine Cessna 402s – the last of these small birds rolled off the assembly line in 1985. However, they’re refreshing their fleet and replacing them with brand new 11-seat Tecnam P2012s.
Then, there’s Lanai Air. While originally launched to exclusively serve Four Seasons Lanai guests with its fleet of luxurious eight-seat Pilatus PC-12s, the airline now allows anyone to book flights with them. With a cruise speed of 328 mph, these birds fly over 100 mph faster than Mokulele’s Cessna 208s, though their three Saab 304s are just as fast. Lanai Air is also far more reliable than Mokulele. All that said, Civil Beat states that the average roundtrip ticket on Lanai Air runs about $320. That is potentially higher than Mokulele’s reported range of $198 to $340, though some in the comment section state that roundtrip fares can reach around $500.
Mokulele Seeks Subsidies for Lanai Service, Final Thoughts
It seems that as Mokulele seeks subsidies for Lanai service, it could do more harm for itself than good. If Mokulele doesn’t secure any subsidies, I don’t think it unreasonable to see the leave Lanai, despite what they’re saying today. And wouldn’t that be ironic? That said, everything is just speculation right now. We’ll find out the outcome soon enough, though!