Hawaii Superferry postpones launch of 2nd ship

Tuesday, October 28, 2008

By JAYMES SONG, Associated Press Writer

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HONOLULU —

Hawaii Superferry Inc. announced Tuesday it has pushed back the introduction of its second ship and the 2009 scheduled launch of service between Oahu and the Big Island for about one year because of the slumping economy.

The company said it will continue Oahu-Maui service with its first vessel, the 350-foot Alakai, which was launched in August 2007.

Hawaii Superferry CEO Tom Fargo said postponing the introduction of the second ship will defer more than $10 million in startup costs and enable the company to maintain its "sound financial position."

"Given today's economic uncertainties, this decision is both prudent and provides us with additional time to develop this market, while continuing to grow our successful Oahu and Maui service," said Fargo, a retired Navy admiral who served as head of the U.S. Pacific Command.

The ship is being built by Alabama-based Austal USA and is expected to be delivered in February. It was supposed to launch in May 2009.

Hawaii Superferry said it will examine another use for the vessel until it enters service. The company anticipates the financial climate in one year "will be more conducive to starting the new route."

Fargo said the company remains committed to serving Hawaii, which relies heavily on air travel for getting from one island to the next.

Hawaii's tourism-driven economy has been rocked by the global economic crisis. According to the latest state figures, Hawaii welcomed 461,051 visitors last month, a decline of 19.5 percent from September 2007.

Each catamaran can accommodate 836 passengers and about 200 vehicles. The Alakai currently operates one morning roundtrip voyage daily between Oahu and Maui and a roundtrip afternoon voyage four days a week.

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On the Net:

Hawaii Superferry: http://www.hawaiisuperferry.com/