California to Hawaii air fares have dropped 17% since low-cost carrier Southwest Airlines began serving the market in March, an analysis by travel site Kayak found.
, authored by Alan R. Beckenstein, a professor of business administration, and Brian Campbell, an aviation consultant, looked at 109 daily nonstop markets that Southwest entered from 2012 to 2015.
In an interview, Campbell said he was not surprised that Southwest continues to have an influence on its rivals’ fares and he predicts the carrier’s influence will continue indefinitely. “Everyone was running a bit scared when Southwest started to launch its service to Hawaii and they had to preemptively drop prices,” he said. “It will shake out in the next few months.”
But Southwest Airlines spokesman Brad Hawkins said: “In general terms, we entered the Hawaii marketplace to do what we do — lower fares, stimulate traffic, and raise the level of customer service that our fans and loyalists don’t tie to so-called premium services, but rather to comfort and value for all.”
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