Budget Battles Delay New Hawaiian Subsidiary

By Adrian Schofield
Source: Aviation Week & Space Technology
October 28, 2013
Credit: Hawaiian Airlines

While the U.S. government shutdown may be over, Washington budget squabbles are continuing to disrupt airline business plans. Hawaiian Airlines is a prime example, with the FAA saying it does not have the resources to perform the certification work needed for the airline to launch its new turboprop subsidiary.

Hawaiian has purchased three ATR 42s for its Ohana inter-island operation, but they are sitting idle as the airline waits for the FAA to act. The delay dates back about six months to the budget cuts related to the sequestration process. Hawaiian intended to launch Ohana during the 2013 summer season, but has been unable to do so.

This situation is “incredibly frustrating for us,” Hawaiian CEO Mark Dunkerley tells Aviation Week. “The strategic development of our business is being held hostage to the budget battles that are taking place.”

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