The twin failures of Aloha Airlines and ATA Airlines could increase the cost of flying to the Mainland by at least $100 each way as less competition makes it possible for remaining carriers to raise prices.

Higher prices and fewer flights will likely also hurt tourist arrivals.

ATA ceased operations yesterday, three days after Aloha ended passenger service. The dual closings eliminated one-seventh of the air capacity between Hawai'i and the West Coast, more than 1 million passenger seats a year.

The stoppages will mean 500,000 fewer travelers to Hawai'i this year, state officials estimated. That could cost the state millions of dollars in lost taxes, landing fees and airport rents.

"This is a dark week for Hawai'i travel," said Jack Richards, president and chief executive officer of Pleasant Holidays LLC, one of the largest tour operators serving Hawai'i.

The ATA and Aloha closures stranded nearly 10,000 passengers in the Islands and many more on the Mainland, forcing most to seek alternative flights at double prices or more.

On Monday, Aloha stopped flying and laid off 1,900 employees. ATA laid off 58 of its workers in Hawai'i.

ATA's closure also prompted Aloha to lay off another 150 of its 1,200 workers in its contract services unit, which provided customer service, baggage service, ticket agents and ramp agents for ATA. Aloha's contract services unit was not affected by the shutdown of Aloha's passenger service.

ATA's exit will have broad consequences for Hawai'i's economy and the local tourism industry.

ATA had brought in about 770,000 passenger seats a year from the West Coast, making it the third-largest trans-Pacfic carrier behind United Airlines and Hawaiian Airlines. Aloha flew 340,000 passenger seats on its flights between the West Coast-and Hawai'i last year, according to state officials.

As a discount carrier, ATA initiated many of the fare cuts on West Coast-to-Hawai'i routes in recent years and its loss will make it easier for its competitors to drive up ticket prices.

HIGHER FARES AHEAD

Steve Danishek, owner of Seattle-based TMA Travel Inc., said consumers who used to pay $300 to $400 for a roundtrip ticket between the West Coast and Hawai'i can expect to pay from $500 to $600 over the next several months.

Right now, a stranded passenger could end up paying as much as $1,100 to fly back because the few seats left are in first class or are being sold at the published fare, he said.

"This is almost like Christmas (prices) in spring," Danishek said. "This is going to be good news for the airlines, but this is bad news for the consumer."

Punchbowl resident Leigh Tamura flew to Las Vegas on ATA on Wednesday, only to be greeted by an airline employee who informed him that ATA had shut down and that his return flight on Sunday was canceled. Tamura said he had paid about $392 for the roundtrip flight.

He said his travel agent, Rachel Shimamoto, couldn't find a flight back until Tuesday. The flight, on Delta Air Lines, includes a stop in Salt Lake City and will cost $1,500.

"Right now, I'm at the Golden Nugget (casino) losing money," Tamura said in a telephone interview yesterday. "Maybe I can win back my air fare."

Passengers aren't the only ones who are going to lose. Carriers like Aloha and ATA pay the state millions of dollars a year in general excise taxes, landing fees and airport rents.

According to federal bankruptcy court filings, Aloha owes the state $1.3 million, while ATA owes the state nearly $500,000.

Marsha Wienert, state tourism liaison, said ATA's grounding is going to affect Hawai'i's tourism industry more than Aloha's shutdown.

Aloha handles about 4.5 percent of the visitor traffic from the Mainland and its loss could be absorbed by the existing carriers, she said. ATA's share of the market is about 10.5 percent, which is difficult to absorb, especially when fuel costs have soared, she said. "When you add another 10.5 percent of the market, that becomes a very large number and we don't have the capacity and existing seats in the market to accomodate those visitors," Wienert said.

HELPING THE STRANDED

State officials and travel industry executives went into high gear yesterday to cope with the latest airline industry crisis.

Hawaiian Airlines added a new roundtrip flight from Honolulu to San Francisco to carry affected ATA passengers, and American Airlines made seats available to ATA customers. United said it will fly additional flights starting today to ease the backlog.

Southwest Airlines, which has a code-share agreement with ATA, said 30,000 to 40,000 of its customers will be affected by the ATA failure. The customers, who are booked for travel through Aug. 22, will be given the choice of a refund or being moved to other airlines serving Hawai'i.

Southwest spokeswoman Brandy King said Southwest will pay the difference in costs for customers rebooked on other airlines.

King said Southwest is seeking new code-share partners for service to Hawai'i and other routes previously handled by ATA.

Local hotels also provided stranded ATA passengers with discount rates while they waited to get on their return flights.

For instance, Marriott Resorts Hawaii said hotel guests traveling on ATA can stay for half price for up to three days beyond their original check-out date. Non-guests affected by the ATA stoppage will get to pay the kama'aina rate at Marriott hotels.

"In my years in the travel industry, I've never seen anything like this," said Kevin Wilmore, director of Albuquerque, N.M.-based Blue Sky Tours, a major tour wholesaler. "It's kind of shocking to have two airlines go this route in less than a week."

There's more to come, said Aloha chief executive officer David Banmiller.

At a bankruptcy court hearing two days before ATA announced it was shutting down, Banmiller predicted further turmoil in the nation's airline industry.

"We just happen to be at the beginning," he said. "You haven't seen the end yet."