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Hawaiian Holdings Management Presents At Deutsche Bank 2012 Aviation And Transportation Conference (Transcript)

On top of that, we’re in the midst of implementing a growth strategy and diversifying our business. We’re roughly two times the size we were five years ago as measured by revenue.

In the strategy, on top of the business model has several advantages. And I believe these are sustainable competitive advantages, just being focused on Hawaii doing one thing that’s important. We’re growing into regions where the demand for the Hawaii Vacation is growing and we’ll look at some of those numbers in a bit. As the leisure carrier, we’re less sensitive to economic downturns, and we’re enjoying economies of scale as we grow.

Let’s take a quick look at our fleet. We have narrow body and wide body aircrafts totaling 43 today. We operate 18 Boeing 717s in our inter-island network with about 123 seats. And it’s the perfect airplane for short-haul, high-frequency flying. The airplane is durable, it has good economics. And it should get us through the decade, if not further.

We’re transitioning our wide body fleet by retiring 767s and adding Airbus A330s to our longer haul services. Currently we have 15 767s worth about 264 seats and nine A330s with 294 seats. The 767 is a fine airplane, but the A330 gives us about 30 more seats, a bit more range and a better cargo capabilities. In 2015, our transition will look like this, we’ll have 22 A330s, and nine 767s.

So, let’s take a look at the network broadly. I know you can’t read this. But the point here is that we have a lot of reach. We’re on the East Coast of the US, we were in the Far East. Also note how everything connects to Hawaii, that’s the point, we’re a destination carrier, and we’re converging in the middle.

So, let’s break the network down. First, we have the neighbor island it’s about quarter of our revenues. It’s a unique, very high frequency, very short-haul market. We have a very strong competitive position with over 85% seat-share. Several routs in this network or among (inaudible) to the US, it surprised me to learn when I came to Hawaii and that we operate a 170 round-trips in the network each day. And as an example, Honolulu to Maui, we operate 32 round-trips per day, very busy.

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