Mokulele Launches Jet Service
In the midst of lawsuits with Mesa, Mokulele Airlines launched its Embrear ERJ 170 interisland service with two jets. The service is part of a capacity purchase agreement with Republic Holdings. Related Story
However, its new service was hampered by both computer and jetway problems, according to President Bill Boyer, caused delays. The inaugural day which launched Honolulu to Lihue service,
was largely devoted to familiarization flights including ex Aloha employees, and the usual press and dignitaries as well as faculty and 24 fourth, fifth and sixth graders from Mokulele Elementary School. However, Boyer reported bookings look good after 140,000 web sit hits on Monday, which dropped to 80,000 daily hits over the rest of the week.
Mokulele’s schedule includes nine roundtrips from Honolulu to Kona and three one-stops between Kona and Lihue. Once the two final of four jets arrive in March, the company plans to kick off seven daily roundtrips from Honolulu to Kahului beginning March 1. However, it plans Honolulu-Hilo service early in the new year.

SW Bids $7.5 for LGA Slots
Southwest is trying to obtain 14 slots at LaGuardia with a $7.5 bid to acquire the slots of bankrupt ATA Airlines, a former code-share partner, to get the right of operate seven daily roundtrips at LaGuardia. The bid was part of the auction carried out by the U.S. Bankruptcy Court in Indianapolis and, according to Southwest is consistent with the Federal Aviation Administration's recent rule clarification regarding LaGuardia's slots. However, it said it would not bid on ATA’s two Washington National slots. Southwest is working with ATA Airlines, which filed for bankruptcy on April 2, with respect to the terms and conditions of the bid. Aircraft and facilities are not part of the bid nor is incorporating employees into its corps.
Southwest now serves the New York area with MacArthur Islip. The move carries on its departure from its original concept of avoiding congested hubs after initiating service to Denver, San Francisco, Philadelphia and Minneapolis. Airports with operating constraints were not conducive to Southwest’s 25-minute turnarounds. The bid is also expected to fill a hole in its Chicago Midway market where ATA once provided connecting service to New York and other destinations in a deal that brought in $50 million. It will also make Southwest more competitive for winning corporate accounts. Indianapolis-based ATA filed for bankruptcy protection and grounded its planes in April.
"It is our intent, with the successful conclusion of the transaction, to make plans to initiate service from LaGuardia," said Southwest's Chairman, President, and CEO Gary Kelly. "Even in this volatile environment, we have said we must monitor the competitive landscape and take advantage of prudent market opportunities."
The bankruptcy court must approve the bid and a reorganization plan for ATA Airlines before Southwest could gain the rights to ATA's LaGuardia slots.
Once the acquisition is completed, Southwest will work with the Federal Aviation Administration and the Port Authority of New York to commence service at LaGuardia, including acquisition of the necessary airport gate(s) and facilities. Details on the commencement of service or the cities that would be served by Southwest from LaGuardia have not yet been determined.