Hawaiian Airlines says it has been underrepresented in Japan, the state’s top international market.
On Wednesday, the fast-growing carrier continued making inroads into Japan, saying it will begin service three days a week between Honolulu and Sapporo. It will be Hawaiian’s fourth Japan route, all launched in the past two years.
The state’s largest and oldest carrier said the Sapporo service will begin Nov. 1, pending approval from the Japanese government. Sapporo, Japan’s fifth-largest city, has a population of 1.9 million. Located on the northern island of Hokkaido, the city is known for its ski resorts and the annual Sapporo Snow Festival that features snow and ice sculptures.
Hawaiian Airlines Chief Commercial Officer Peter Ingram said while Japan may not offer the growth opportunities of other Asian markets, it is an expansion area previously nonexistent.
"It has been for decades the largest international source of visitors to the state and we were notable by our absence from that marketplace," said Ingram, who was a guest speaker Wednesday at a Pacific Asia Travel Association-Hawaii event at the Hawaii Prince Hotel. "We saw an opportunity a couple years ago, part of which was created by the opening of (Tokyo’s) Haneda Airport to international visitors again. Part of that was created by the contraction of Japan Airlines and the reduction of some of their service to Hawaii. That presented an opportunity for us to grab our rightful piece of the market in Japan."
Hawaiian began moving into Japan in November 2010 when it began service to Tokyo. The airline then added Osaka in July 2011 and Fukuoka in April. Japanese passengers now will be able to fly directly to Hawaii from Japan’s three largest islands — Honshu (Tokyo and Osaka), Hokkaido (Sapporo) and Kyushu (Fukuoka).
The Sapporo service also will mark Hawaiian’s sixth new route in two years. Hawaiian began service to Seoul in January 2011 and will begin flying to John F. Kennedy International Airport in New York on June 4. Combined with increased frequency of flights from South Korea and Australia, plus other increases in service this summer from the mainland, Hawaiian said it will increase seating capacity to Hawaii by 279,000 seats this year over 2011.
"This new service (Sapporo) builds on our strategy to diversify our revenue base and strengthens Hawaiian’s presence in one of our most important visitor markets," Hawaiian President and CEO Mark Dunkerley said in a statement.
Hawaiian’s flights will depart Honolulu on Tuesdays, Thursdays and Saturdays at 2:45 p.m. and arrive at New Chitose Airport in Sapporo at 7 p.m. the next day. The Honolulu-bound flights will leave Sapporo on Wednesdays, Fridays and Sundays at 9 p.m. and arrive in Honolulu at 9:15 a.m. the same day.
Ingram said no airline has flown nonstop between Honolulu and Sapporo since Japan Airlines stopped service in 2003.
"We always look at where the visitors are coming from and, particularly, are coming from where they haven’t had availability of a nonstop for awhile," Ingram said.
"We know a lot of our customers from that region are connecting today over Tokyo and over other airports and we think it’s a terrific opportunity. We’ve had great support with the people we’ve talked to in the travel community and our distribution partners and we’re really excited that Sapporo is going to be another success for us in Japan."
The Hawaii Tourism Authority estimates the new flight will provide $61 million in direct visitor spending, $6.7 million in tax revenue and support 700 jobs for state residents annually.
"Direct flight access from additional regional cities, like Sapporo, increases convenience and access to the Hawaiian Islands, and enables Hawaii to build momentum for continued growth in international travel," said Mike McCartney, HTA president and CEO.
Visitor arrivals from Japan to Hawaii have rebounded from the March 2011 earthquake and tsunami and through the first quarter of this year were up 11.2 percent from the same period a year ago, according to HTA.
Ingram said there are a couple of other Japanese cities the airline is looking to expand to as well as other foreign destinations.
"The opportunities we’re looking at for other flights for next year are not exclusive in Japan," he said. "We’re also looking in the South Pacific where we’ve seen growth in visitor arrivals and there are other places in Asia where we think there are opportunities."
He said there is "some possibility" that one more international route would start in the second half of this year and that the decision will be made in the "next couple of months."
Ingram said Hawaiian is selecting new routes based on where it sees state tourism growing in the next 10 years.
He said the Australian cities of Brisbane and Melbourne "are absolutely on the radar screen" for service to Honolulu after they were abruptly stopped in February after a brief two-month run with now-defunct Air Australia.
Ingram also said nonstop service to China is closer to becoming a reality for Hawaiian and that the airline has hired general sales agents in northern and southern China to attract business and to route passengers to Hawaii through Seoul and Manila.
"We’re attracting some of that travel business from China today on those flights," Ingram said. "On one hand, that is feeding traffic into our existing network. On the other hand, it is giving us the commercial knowledge that we need to be able to grow that business over time. Where it ranks on our future route selections is a moving piece. But if I had to guess, I would say between two and five years. And if I were a betting man, I’d say it’s closer to two years than five years before we’re serving China nonstop."
