Luaus, leis, and laying in the sun -- Hawaiian Holdings knows how to get you there. The company's main subsidiary, Hawaiian Airlines, transports passengers and cargo between Honolulu and about a dozen major cities in the western US. Transpacific routes account for most of the carrier's revenue. Hawaiian Airlines also serves four of the six main Hawaiian Islands and destinations in the South Pacific such as American Samoa, Australia, the Philippines, and Tahiti. It operates a fleet of about 35 aircraft (most are Boeing 717s for flights between the Hawaiian Islands and Boeing 767s for transpacific flights). In addition to its scheduled passenger and cargo operations, Hawaiian Airlines provides charter services.
To supplement its own inter-island offerings, Hawaiian Airlines serves other destinations within Hawaii via a code-sharing deal with Island Air. In addition, Hawaiian Airlines maintains code-sharing arrangements with carriers such as American Airlines, Continental Airlines, Delta Air Lines, United, and US Airways. Code-sharing allows airlines to extend their networks by selling tickets on other carriers' flights.
Sales and Marketing
Hawaiian Airlines uses various distribution channels including its website (mostly for North America and regional island routes) and travel agencies and wholesale distributors for international flights.
Hawaiian Airlines has enjoyed three straight years of steady growth. Revenues spiked 19% from $1.65 billion in 2011 to reach a historical milestone of $1.96 billion in 2012. After suffering a net loss of nearly $3 million in 2011, the airline posted $53 million in net income for 2012.
The growth in 2012 was driven by an increase in passenger revenue due to an uptick in capacity across its network. The positive net income was due to the absence of a $70 million litigation charge it incurred in 2011 related to the purchase of aircraft.
Hawaiian Airlines is counting on continued growth in its transpacific and South Pacific operations through expanded service to Tahiti, Australia, Japan, and the Philippines. It has instituted a code-sharing agreement with Korean Air Lines and now offers nonstop flights to that country. Hawaiian Airlines is currently the only airline to offer nonstop service from Honolulu to Pago Pago and American Samoa. To support its expansion plans, the company has ordered a dozen wide-body and extra-wide-body aircraft from Airbus for delivery between 2012 and 2020.
In mid-2013 the airline announced plans to launch a non-stop service between Honolulu and Beijing beginning in April 2014. This flight will represent the airlines' tenth international destination and will make China one of Hawaiian Airlines' most important visitor destinations.
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