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Monday, August 29, 2016
Molokai Ferry to Shut Down—Can’t Compete With Subsidized Airfares
By News Release @ 6:57 PM :: 5936 Views :: Maui County, Hawaii State Government

MAUI/MOLOKAI FERRY SERVICE

Ad from Pg 8 of Hawaii Boats and Yachts Magazine, September, 2016 edition

Hawaii's longest running interisland ferry service needs a new owner. Sea Link of Hawaii has been running since 1987 between Maui and Molokai (and on occasion to Oahu).

This vital service has been overlooked in recent years and needs a well connected new owner to secure government support to increase our ongoing service and financing for a new boat. 

Company has a valid PUC tariff for passengers and freight between Maui, Molokai, and Oahu. Google "Molokai Ferry" for an overview of our current operations. This has been an ongoing non invasive and whale friendly service to the residents of the state for years. 

Current survey value the Molokai Princess is $600K. We will sell with or without the boat. Financing available to a qualified buyer(s) with very strong ties to Hawaii.

  *   *   *   *   *

Future of the Ferry – Open Letter to Passengers 8/25/2016

From Sea Link of Hawaii

An open letter to passenger, captains, crew and all supporters of the Molokai Ferry,

Dear Friends and Neighbors,

After nearly 30 years, Sea Link of Hawaii, Inc. (“SLH”) must unfortunately suspend its water carrier service in Hawaii, including routes between Molokai and Maui, for economic reasons.

The exact date for the suspension of service has not been determined, but SLH anticipates the surrender of its license with the Public Utilities Commission (“PUC”) to be effective sometime in the next few weeks.

Any prepaid tickets will be refunded upon a ticket holder’s request.

SLH’s water carrier service is regulated by the PUC, and there are certain pricing and route requirements imposed upon all regulated water carriers.  Over the years, SLH has been fortunate to be able to continue its services, in part, due to certain grants and subsidies that enabled SLH to endure various economic conditions that have resulted in periods of low ridership.  However, SLH no longer has any grants and subsidies, and efforts to obtain new grants and subsidies have been unsuccessful.

Meanwhile, local commuter airlines that are receiving long-term federal grants in the millions of dollars are able to provide air transportation at a lower cost than SLH’s regulated pricing and have the ability to modify ticket pricing and schedules at will, allowing for more flexibility in adjusting to changing market demand.  Unfortunately, SLH is unable to successfully compete against unregulated air carriers receiving large federal grants.

SLH intends to announce the PUC’s approval of the SLH’s request to surrender its license if/when such approval has issued by the PUC.

It has been an honor to serve our neighbors in Hawaii for the past 29 years.

Yours Truly,

David Jung

President, Sea Link of Hawaii

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