Mesa Air Group, the parent company of go! airlines, and Mokulele Airlines have announced that they will create a joint venture to form the second-largest interisland airline in Hawaii.
Under the terms of the agreement, Mesa will own 75 percent of the operation and Mokulele will own 25 percent. The airlines will be co-branded at ticket counters. Mesa’s go! is clearly the dominant partner in the new operation, with Mokulele’s management essentially saying that the deal was inevitable, the result of the recession and low passenger traffic. Both companies said they are reviewing staffing levels; layoffs are expected since the airlines offer overlapping service. Mokulele has about 160 Hawaii employees, go! has 330. Mokulele will also be giving up the advantage it touted over go!: its roomier and more luxurious plane
