ATA Looks to Drive More Business to Hawaii Market

Eighteen months after exiting bankruptcy, ATA Airlines is working to expand, with Hawaii as a potential growth market. The Indianapolis-based carrier added nonstop flights to Lihue on Kauai and Hilo on the Big Island of Hawaii from Oakland, California, and to Maui from Las Vegas on June 14.

With those additions, ATA, long a force in applying downward pressure on fares to the Islands, serves more Hawaiian destinations nonstop from the mainland –five in all- than any other airline. The carrier also flies nonstop to Honolulu and to Kona on the Big Island.

By September, two-thirds of ATA’s available seats will be on Hawaii runs, according to Josef Loew, ATA’s senior vice president, scheduled services. The airline now connects Oakland with Lihue, Kauai, four times a week, and Kona, on the island of Hawaii, thrice weekly. Maui-Las Vegas service is daily.

Until a couple of years ago, the other half of its business had been charter flights in partnership with Pleasant Holidays. That relationship ended in 2005, forcing ATA to rethink its business plan.

ATA filed for Chapter 11 bankruptcy protection in the fall of 2004 and exited bankruptcy in February 2006 with plans for growth that are now taking shape in Hawaii.

The agreement goes well beyond simple codesharing. As part of the agreement, ATA transferred its Bay Area operations from San Francisco to Oakland, where Southwest has a well-established presence. ATA now schedules its flights to provide Hawaii service for incoming Southwest passengers at Oakland.