Local airline enters bidding battle for federal money to provide service in Hawaii
Multiple airlines are competing for potentially millions in federal funds to provide service to the island of Lanai. Pacific Air Charter, a local airline operating in Hawaii, is entering a bidding battle to secure federal funds to provide services to Lanai, a remote island where many are dependent on electricity. The company plans to invest $100 million into a new fleet of 24 Tecnam planes and secure a maintenance facility at Honolulu’s airport. This move comes after Mokulele Airlines, the only commercial airline operating on Lanai's island, requested federal funds in December due to rising costs. The federal government has now asked other airlines to submit bids for the federal funding. Massachusetts-based airline Cape Air is also considering submitting a bid.
Published : a month ago by Eddie Dowd in Travel
HONOLULU (HawaiiNewsNow) - A local airline has entered a bidding battle against multiple airlines in an effort to secure potentially millions in federal funds to service one of Hawaii’s remote communities.
Pacific Air Charter told Hawaii News Now that in two weeks, they’ll have three twin-engine “Tecnam Traveller” aircrafts that can fly between Honolulu and Lanai.
After 20 years of running private charters and flight schools, the Oahu-based company says its ready to expand by investing $100 million into a brand new fleet of 24 Tecnam planes and securing a maintenance facility at Honolulu’s airport.
Chief Operating Officer Patrick McNamee says the twin engines allow the plane to operate even if one engine goes out. He also claims that in a year, it will use unleaded fuel, which will have zero emissions.
The new development comes after Lanai’s only commercial airline — Mokulele Airlines — asked the U.S Department of Transportation in December for federal money to help continue operations, citing rising costs.
“It would allow us to lower fares a little bit and keep fares at a stable level,” said Mokulele Chief of Staff Keith Sisson.
In response, the federal government asked other airlines to submit bids for the federal money to operate the route. That got the attention of McNamee.
McNamee flew for big-named airlines like United Air for 37 years before retiring last year to work full-time for Pacific Air Charter.
The new development comes as state and local officials say Massachusetts-based airline Cape Air is also looking into possibly submitting a bid.
Aviation expert Peter Forman says he believes Mokulele Airlines might have an advantage.
“The primary issue is bidding price. Who’s going to do it with the least subsidy needed?” said Forman. “Somebody who is already serving Lana’i would put in low bid and they would likely get it.”
With a week left before bids are due, it appears three or more airlines are competing for federal money to serve the island of Lanai.
Topics: Aviation, Airlines