United Airlines Hawaii investment will total $200 million through 2027 to modernize tools and resources at state airports, according to company executives.
Oscar Munoz, United’s chief executive officer, described Hawaii as a strong leisure market and said the carrier plans to reinvest “well-earned money” in the islands. During a recent visit, he met with Gov. David Ige, tourism leaders and some of the carrier’s roughly 1,400 local employees.
Munoz said the spending will focus on modernizing equipment and resources used by United’s Hawaii-based teams at state airports to improve the customer experience. He voiced support for creating an Airport Authority to streamline ongoing airport infrastructure work statewide.
United Airlines Hawaii investment and service expansion
United, which has served Hawaii for 70 years, added 11 routes and 363,522 seats to the neighbor islands between 2017 and 2018, according to the Hawaii Tourism Authority. This year, the airline expects to operate 11,985 flights to and from the state, offering about 2.63 million seats.
The airline is adjusting schedules to improve connections to Hawaii through its seven domestic hubs in Los Angeles, San Francisco, Chicago, Denver, New York, Houston and Washington. Munoz said United plans hub schedule shifts so travelers can depart the mainland overnight and arrive in Hawaii in the morning. A major schedule change is planned at the Denver hub in February to shorten connections to island flights.
Munoz said added neighbor island capacity initially matched rising demand, then eased due to the Kīlauea eruption on Hawaiʻi island and additional capacity from other carriers. He said overall performance remains solid and the airline continues to believe in the Hawaii market.
United remains the state’s leading carrier even as multiple airlines expand in the islands. New service launched in 2017 included United, Hawaiian Airlines, AirAsia X, Scoot, Japan Airlines and Virgin America. Additional service in 2018 and 2019 is expected from United, Air Canada, Sun Country Airlines, Southwest Airlines and WestJet, according to tourism officials.
Competition, governance and airport projects
Munoz said he is not concerned about new competition from Southwest Airlines, which has announced plans to begin selling mainland-to-Hawaii tickets before the end of 2018.
United is monitoring efforts to establish an Airport Authority as well as leadership changes at the Hawaii Tourism Authority. HTA President and CEO George Szigeti was dismissed by the board in June and is set to depart Oct. 31, while the organization’s No. 2 and No. 3 positions have been vacant since spring. “It’s important that we get [HTA leadership] settled,” Munoz said.
Despite the uncertainty, United is working with the state Department of Transportation on the planned Diamond Head concourse at Daniel K. Inouye International Airport. Representatives from the Airlines Committee of Hawaii, including United, are serving with the DOT Airports Division on a selection panel to choose a developer for design and construction of the facility.
United said it hopes the developer selection will begin this fall and conclude next year. The airline expects to collaborate with the state and consultants over the next two to three years to complete an environmental impact report, a prerequisite for construction to start.
On the move
- The American Red Cross of Hawaii named David Washburn regional chief development officer. He has 24 years of experience in business development, nonprofit management and community outreach, and previously served as director of institutional giving at the Honolulu Museum of Art.
- American Savings Bank appointed Bryce Tani as senior residential loan officer. Tani has 16 years in the mortgage industry and has been recognized by Honolulu Magazine among the best in real estate.
- HawaiiUSA Federal Credit Union hired Keith Masuda as commercial loan underwriting manager. With more than 20 years in banking and financial services, Masuda was most recently vice president and senior strategic account executive at Central Pacific Bank and previously held roles at City Bank, Bank of Hawaii and AVCO Financial Services of Hawaii.
- Chun Kerr LLLP added Winston Wong as an associate focusing on taxation law, business, real estate and litigation. Wong is a graduate of the William S. Richardson School of Law, where he served as a technical editor of the Law Review.
