Wednesday, March 18, 2009
Truth be told, the Superferry wasn’t so super
The following is from “Maui Observer” and is posted with permission. Check out the numbers in the accompanying table.
What is the real reason that the Hawaii Superferry is leaving?
It would seem that the real reason that the Hawaii Superferry company is stopping operations is that their financial model is NOT working. They seem to be using the Supreme Court decision as an excuse and as a potential basis for a suit against the State. The failure to attract enough passengers/vehicles, even with severely discounted fares, seems to be the real rationale for the HSF withdrawal from the Hawaii inter-island market. The investors are probably thankful that they have been given an excuse to immediately cease operations.
The Superferry Company claimed to the PUC that it would have a capacity for 866 passengers (50% break-even would be 433), and a capacity to carry 282 vehicles (50% break-even would be 141). If it is NOT attracting enough passengers and vehicles, it will be unable to cover its expenses.
It was claimed by Hawaii Superferry Company that their financial break-even point was to be able to travel at 50% of vessel capacity. The financial break-even assumed higher ticket prices (rather than the discounted fares now being offered), and it required a "fuel- adjustment surcharge" that is NOT being imposed. They have failed to attract sufficient ridership.
| HAWAII SUPERFERRY -- RIDERSHIP | |||||
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| Passengers(Break-even = 433) |
| Autos (Break-even = 141) |
| Commercial Vehicles |
| NOVEMBER 2008 | 18,890 |
| 5,100 |
| 621 |
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| DECEMBER 2008 | 16,590 |
| 4,868 |
| 586 |
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| JANUARY 2009 | 13,312 |
| 3,718 |
| 622 |
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| 3 Month TOTAL | 48,792 |
| 13,686 |
| 1,829 |
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| NOVEMBER-2008 Approximate Average per one-way transit | 249 |
| 67 |
| 8 |
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| DECEMBER-2008 Approximate Average per one-way transit | 207 |
| 61 |
| 7 |
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| JANUARY-2009 Approximate Average per one-way transit | 166 |
| 46 |
| 8 |
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| 3 MONTH Approximate Average per one-way transit | 207 |
| 58 |
| 8 |
Ridership Source: Numbers from the Wednesday, March 18, 2009 Honolulu Advertiser.
http://www.honoluluadvertiser.com/article/20090318/NEWS09/903180408
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