The intra-Hawaiian market is in the midst of an overhaul with the launch of the Mesa Air Group’s go! lowering fares across the board. The once-tiny Island Air was assumed to be the first carrier pushed out of business by the increased competition. But according to this article, they’ve carved out a nice niche for themselves, flying point-to-point between islands, allowing passengers to bypass a connection in Honolulu. And, somehow, their fares are about $5 lower ($40 all in) than those of their competitors. It’s worth a read to see how a niche player deals with price competition.