Like many rural islands, air transportation is a lifeline for the Lānaʻi community. Now, three airlines are bidding for federal funding to fly the route.
The U.S. Department of Transportation established the Essential Air Service program in 1978 to ensure rural, remote or underserved communities have flight access to larger hubs. The program offers subsidies, if needed, to air carriers on a per-flight basis.
Mokulele Airlines, Pacific Air Charters, and Cape Air have all filed proposals, and say they have what it takes.
Mokulele had previously served the island without funding assistance. But at the end of 2023, Mokulele wrote a letter to the U.S. Department of Transportation that said they could no longer fly to Lānaʻi without a subsidy, citing rising operating costs making the route unprofitable. That triggered the USDOT to request proposals for an EAS subsidy.
Mokulele and Pacific Air both submitted proposals, but at the time, Pacific Air did not hold the required FAA certification to complete the EAS requirements, according to the USDOT.
Mokulele was awarded a two-year contract, which is set to expire this year.
Lānaʻi Air also provides flights to the island, but residents say those flights are too expensive.
Maui County Councilmember Gabe Johnson of Lānaʻi said his community is looking for affordability and reliability when it comes to Essential Air Service.
“I'm ready for a new carrier over here, that's reliable, you know, that's what we need,” he told HPR. “We're not going for snorkel cruises or dinners, we're going to Maui and Oʻahu for doctors' appointments and important meetings. These are the things that my community has been asking for, for so long.”
All three airlines are proposing daily round trips between Lānaʻi and Honolulu, and Lānaʻi and Maui.
Mokulele is asking for nearly $20 million subsidy for the next four years. Pacific Air Charters is requesting a subsidy between $6.5 to $7 million for two years. Cape Air is requesting over $14.5 million for a two-year contract, or just over $30 million for four years.
All companies are proposing service to Lānaʻi with nine-seat aircraft. Mokulele flies single-engine Cessna Caravans, Pacific Air flies Tecnam Travelers, which are twin-engine planes, and Cape Air is offering the Travelers and another twin-engine model, the Cessna 402.
Louis Saint-Cyr, president of Mokulele’s parent company Surf Air Mobility, said he took the role two years ago.
“We inherited a situation that was challenging, and so we've changed the entire management team and the entire company,” he told HPR.
He said that’s brought big operational improvements.
“Two years ago, our on-time performance, our completion rate was probably averaging system-wide at 86%. Now we operate at 98%. That is our new standard, and we're very proud of that.”
Mokulele has been operating in Hawaii for 32 years and also holds EAS contracts for Kalaupapa, Hana and Kamuela. They have 16 planes flying across the state.
“We’re committed to the community, and we're going to keep working hard,” said Saint-Cyr.
Cape Air met with the Lānaʻi community this week. The airline is based in Massachusetts, but Chief Operating Officer Andrew Bonney said they’re experienced flying in Micronesia, Guam, Saipan and the Caribbean, serving small communities.
“It's a privilege to be on Lānaʻi, talking with folks about air service,” Bonney told HPR. “Cape Air has been very fortunate to do lots of island service in the past, and this is kind of what Cape Air is all about.”
The company currently serves 12 EAS communities, in addition to other markets. He said he hears Lānaʻi residents’ needs.
“When we were here, starting two years ago, talking with the community about air service, the number one thing that they impressed upon us was the importance of reliability,” said Bonney. “So, while the schedule could probably be flown with two aircraft, we will bring at least five out to the Hawaiian Islands to ensure that we have the ability to always be reliable. The hallmark of small community air service absolutely has to be reliability. People use this service to get to their doctor's appointments, to go shopping, to see friends and family, and it's so incredibly disruptive when flights are either canceled or delayed.”
Pacific Air Charters President Marshall Ashley said his company has been a mostly charter operation for its more than 20-year history. They are now certified to operate commuter service and ready to expand into that area.
“We were hearing endless horrific anecdotes about delayed and canceled flights and issues with service,” said Ashley, referring to when their current management team took over four years ago. “We value our communities and we felt like we were in a position to alleviate some of that pain, and we’re looking for that opportunity.”
Ashley stressed the safety aspect provided by their twin-engine aircraft as opposed to Mokulele’s single-engine planes, and the experience level of Pacific Air’s pilots.
He said they haven’t met with the Lānaʻi community, but plan to work with residents to address their schedule needs if they’re awarded the contract.
Public comments on the Essential Air Service proposals are due on July 10 by emailing Scott.Faulk@dot.gov.
The USDOT said the new contract is expected to begin on Sept. 1.
