Can airlines be charged with price gouging?

[Cathyb]

We are one of the 'Remember the Alamo' losers and made a one way trip from Maui to Kauai in mid-July frantically with Hawaiian Air. We paid just under $200pp. Isn't that price gouging in a crisis?

 

[Cathyb]

I goofed -- I meant Aloha Airlines and I couldn't get the Edit to work. Sorry.

 

[Dave M]

I'm confused.

Are you saying (1) you flew on Hawaiian last summer ("...made a one-way trip"), (2) you just purchased Hawaiian Air tickets to replace a planned Aloha trip this coming summer ("...frantically with Hawaiian Air") or (3) flew on Aloha last summer (your second post)? (I'm guessing #2.)

Whichever it is, there are and have been at least two choices (Hawaiian and Go) for inter-island airlines. There is no law that prohibits airlines from raising prices. And you could have chosen Go. Prices have been artificially low because of Go. With Aloha disappearing, the reduced capacity on the inter-island routes makes it easier for Hawaiian to raise prices.

Hawaiian has had mega-losses recently because of rapidly rising fuel costs and the low-fare competition from Go. Aloha's demise gives Hawaiian a chance to raise fares, thus giving it at least some chance to survive its own financial difficulties!

 

[Cathyb]

DaveM: Yes #2. We paid $60pp with Aloha and $196pp with Hawaiian Air to get from Maui to Kauai in July 2008 one way.

We didn't even know about Go until this crisis came up so never entered our minds to use them for our interisland transfer.

It just seems that during a hurricane, store owners are not allowed to price gauge in shortages and this doesn't seem too much difference. This is over 100% higher price.

 

[dboy1]

You might have paid a low price last year but it seems to me that that is part of the reason that ALOHA went broke. I would hardly expect another airline to continue doing the same thing unless they want to go broke also.

 

[chellej]

I priced the trip not too long ago for May and it was $179 round trip so they have more than doubled it.

We opted to stay on Kauai for 2 weeks instead

 

[LAX Mom]

The fuel costs are killing the airlines and at $60 per person they are probably losing money. Not a healthy long term situation for the airlines or the consumers. Prices are always priced based on capacity and availablity. With Aloha out of business, it's expected that the fewer seats available will cost more $$. It's all a matter of supply/demand and huge fuel expenses for the airlines.

 

[isisdave]

This puzzles me. Right after the announcement I bought KOA-HNL on June 21 for $59. It's $69 today for the same flight, but if you can go at 0700 it's $49.

Cathyb, OGG-LIH on July 18 or 19 or 20 is $73-89 depending on flight. What date were you looking at to find over $200?

 

[LisaRex]

Short answer is no. They are not a monopoly and they have a viable competitor. They are free to set the price to what the market will bear. If you don't want to pay their rate, you're free to choose another airline or another travel date.

It may not be Aloha's fault entirely. July airfare is through the roof. Back in December I paid $1100 for one RT coach fare from Cincinnati to Maui July 12-July 19. Rental car prices are through the roof, too. I won't travel to Maui in July again. Had I chosen mid June or early August, the airfare price would have been at least 30% cheaper. That's the price you pay for traveling at peak holiday time.

 

[Cathyb]

We'll just miss you in Maui -- our fixed week at The Whaler is July 5-12 (along with June 28-July 5 but we aren't using that week). We had no choice as our American Airline flight home was out of Kauai. Oh well, it's just money

 

["Roger"]

Here are two knowledgeable blogs about Hawaiian airline competion. While both blogs made their lasts entries prior to the collapse of Aloha airlines, they both saw this as the inevitable consequence of go! aiming to drive Aloha out of business. The second blog has an extensive analysis of the costs of airline business within Hawaii. The long run prospectus -- higher interisland airfares will become a feature of future trips to Hawaii.

Peter Forman's blog

Wings of Paradise blog

 

[johnmfaeth]

Also a factor is that store price gouging falls entirely under state and municipal consumer protections, where Airline regulation is a federal item.

 

[Hawaiibarb]

Hawaiian and Go trying to help

From what I've been reading, many people got caught with Aloha reservations when they suddenly closed down, so both Hawaiian and Go have added flights to try and help. Merrie Monarch is this week and one hula halau had 60 people suddenly trying to find seats. About 2000 Aloha employees have lost their jobs.....it's a sad time. And yes, I expect we all will be paying higher fares to the neighbor islands.

 

[Cathyb]

July 12 from Maui to Kauai (now thru Oahu).

 

[GaryDouglas]

How's ox is this?

Short answer is no. They are not a monopoly and they have a viable competitor. They are free to set the price to what the market will bear. If you don't want to pay their rate, you're free to choose another airline or another travel date.

Besides that, didn't Hawaiian post a $40.5MM loss in 2006 and $7.1MM gain in 2007. Sounds like we are gouging them. If the pendulum doesn't swing towards them often enough, they will follow Aloha and ATA...

 

[Cathyb]

isisdave: We learned an expensive lesson When we heard about Aloha filing bankruptcy, we panicked. Called Aloha, no answer many times and finally got in to a voice message saying call Hawaiian Air. They kept cutting us off so we went to their website on 3/31 and booked the $196pp from Maui to Kauai on July 12. Today as one poster said, it is almost 1/3 the price.

So today on 4/3 we waited 30 minutes and finally got to talk with an Hawaiian Air clerk who basically told us that on 3/31 there was no way to know how high the demand would be so they raised the price. Today they have balanced it out. We asked if we had any recourse and, of course, the answer was 'NO'.

We had no recourse at the time as our flight home was out of Kauai and we had to get to the island -- so I guess our lesson is 'stay cool man' and wait a day or two