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$19 Fare in Hawaii Could Have Its First Victim

As you might imagine, other airlines operating in Hawaii were not happy when new entrant go! introduced a $19 fare between the islands.  The insanely low fare caused a ton of heated discussion and threats of lawsuits, and it may now claim its first victim.  Island Air has returned one of its airplanes and did not take delivery of 2 more scheduled Q400s because it said it could not compete in a $19 environment.  Island Air isn’t going out of business tomorrow, but it’s the first sign that the marketplace is changing because of low yields.

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