Hawaii Superferry holds off on launch of Big Island service for one year

Hawaii Superferry holds off on launch of Big Island service for one year

Hawaii Superferry this afternoon announced that it is postponing the introduction of its second ship and the start of service to the Big Island for about one year because of the uncertain economic climate.

The company said it will delay putting a second ship into service for a year when the company anticipates the financial and economic climate will be more conducive to starting the new route. Superferry had earlier anticipated the second ship arriving in the Islands in March.

President and CEO Adm. Thomas Fargo said Hawaii Superferry is anticipating delivery of the second ship in Mobile, Ala., from shipbuilder Austal USA in late February 2009. The company will look at short-term opportunities for use of the ship prior to its induction into service in the Islands.

The second of Hawaii Superferry's two 113 m catamarans was launched at Austal USA's Mobile, Alabama, shipyard last month. The company is expecting to take delivery of it in Mobile in late February 2009 and says it "will look at short-term opportunities for use of the ship prior to its induction into service in the islands."

The Superferry got off to an unsteady launch last year when legal challenges and bad weather plagued the initial months of operation. A damaged boat and pier caused further interruptions but has in recent months grown more popular.

The interisland ferry service will continue its current schedule of service between the islands of O'ahu and Maui with its first ship, the Alakai.

Fargo said the company remains committed to serving the people and businesses of Hawai'i.

"Hawaii Superferry remains committed to serving the people and businesses of Hawaii," said Fargo. "We're encouraged by the increased ridership we experienced this summer and by the very positive feedback we've been receiving about our service. Postponing the introduction of our second ship will defer over $10 million in start-up costs and enable us to maintain our 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.

"We believe that our business plan is solid for the long run," continued Mr. Fargo. "Serving the islands, including the Big Island and Kauai, remains our goal and is very important to us. In the meantime, we will continue our focus of providing a reliable and responsible service between Maui and Oahu and preparations for the arrival of our second ship to ensure its successful launch."

"Postponing the introduction of our second ship will defer over $10 million in start-up costs and enable us to maintain our sound financial position," Fargo said. "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 O'ahu and Maui service."

Fargo said the company still intends to go forward with the long-term plan to expand service to the Big Island and Kaua'i. The company had planned to start with Kaua'i earlier but faced opposition from residents there.

"In the meantime, we will continue our focus of providing a reliable and responsible service between Maui and O'ahu and preparations for the arrival of our second ship to ensure its successful launch," he said.

Hawaii Superferry's first ship, the Alakai, seats up to 800 passengers and carries approximately 200 vehicles.

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