Stella Moana & Company To: From: Subject: Date: Cathy Mei, Managing Director Bobbi McLin, Account Director Switch to Hawaiian Airlines October 5, 2010 This memo explains why Hawaiian Airlines should be the company’s primary airline for its business trips to Hawaii. Hawaiian Airlines will save us more money than our current provider, Continental Airlines. Hawaiian has recently received high honors as an overall carrier. The rest of this memo will describe those honors, compare and contrast Hawaiian and Continental Airlines, and explain the benefits Stella Moana & Company can have by switching to Hawaiian Airlines. Recent achievements by Hawaiian Airlines Hawaiian Airlines has been well-recognized for its outstanding performances over the years. According to its annual report for 2009, it ranked in the nation’s top spots among different categories: #1 carrier for overall service quality and performance for the second time in three years #1 on-time airline for its sixth consecutive year, with 94.7 percent of its flights arriving as scheduled #1 carrier for fewest flight cancellations, reporting only two cancellations out of 6, 392 flights #2 carrier for fewest mishandled bags Comparisons between Hawaiian and Continental Hawaiian has lower fares than Continental. For example, Hawaiian’s prices for the month of October averaged $299 for economy class. Continental’s economy class prices averaged $1273 for October. In addition, all of Hawaiian’s first-class fares are less than $1000. Continental’s first-class fares average over $2000. Our company could potentially save close to $6000 a month just by buying tickets with Hawaiian. All of Hawaiian’s flights to Hawaii are nonstop. Continental only offers one direct flight to Hawaii out of Los Angeles. The rest of Continental’s flights will take you as far as Houston, Texas, and then from Houston to Honolulu. The total travel time for these flights is 16 hours. Hawaiian’s flights have a travel time of six hours at most. Traveling for excessive hours can poorly impact employees. We don’t want our employees to feel drained by the time they reach their destination. Also, the wasted hours of traveling on Continental could be put to better use. Our employees could use those hours to spend more time with clients, inquire about further project developments, or even have a moment to experience Hawaii. Hawaiian has excellent in-flight service. All of their flights serve breakfast, lunch or dinner, plus snacks and soft drinks for free. Continental only serves snacks on their flights to Hawaii. Hawaiian offers personalized in-flight entertainment systems called digE players. These are portable devices that contain newly released movies, network television shows, music videos, and audio channels. Continental just shows a movie on three different screens in the main cabin. Our employees start working hard as soon as they arrive. I think it’d be nice to give them an airline that provides food and entertainment before they land. Benefits of Hawaiian Hawaiian has Visa credit card programs available for businesses. These have an annual fee of $50. Continental offers a similar MasterCard program, but for an annual fee of $395. While both airlines let you earn one mile for every $1 spent on the credit cards, Hawaiian gives you the chance to earn up to five. Hawaiian is partnered with over 250 stores, restaurants and hotels that will give you up to five miles for every dollar spent at their business. By signing up for Hawaiian’s Visa, we could use the miles to earn free flights, and even redeem awards for hotels, cars, dining and shopping. These “HawaiianMiles” aren’t only available through Hawaiian’s Visa card. We can take advantage of these just by signing and setting up an account. These miles will allow us to purchase roundtrips through not only Hawaiian Airlines, but also Delta Airlines, Continental Airlines, and Virgin Atlantic. We could use them for a variety of hotels in Hawaii, all Marriott hotels, and even some Las Vegas hotels that include $75 worth of gaming chips. Car rentals, gift certificates to restaurants, and even rounds of golf are also examples of rewards that we can use for ourselves or even our clients. We make business trips to Hawaii 35+ times a year. Hawaiian offers a “Preferred Affiliate” program to organizations that travel to Hawaii a minimum of 20 roundtrips per year. This program would be perfect for us. Benefits of this program include: Exclusive access to discounted web fares Validity for both business and leisure travel Three HawaiianMiles for every dollar spent on HawaiianAir.com/Affiliate Redeemable miles for flight awards on Hawaiian Continental offers no such program for businesses that travel to consistent locations. Conclusion After reading this memo, I hope you will begin purchasing tickets from Hawaiian Airlines for our business trips and look into the programs I mentioned. Below, I’ve listed how to apply or sign up for them. If you have any questions or would like to discuss this further, please call my office at ext. 1313. Hawaiian Miles -- Go to HawaiianAir.com, click on ‘Manage’ at the top and then click on HawaiianMiles. There is a ‘Join Now’ link you can click on that will take you to an enrollment page that’s easy to fill out. Hawaiian Airline’s Visa Signature Card – Go to HawaiianAir.com/ApplyVisa or call 1-800932-2775 and mention priority code UABG2H. Preferred Affiliate Program – Call Hawaiian’s North America Passenger Sales at (414) 2938107 or email HawaiiSales@HawaiianAir.com for more information. Memo word count: 1211 words