PACI Begins Charters, Eyes Commuter Service

image courtesy of PACI

By Jack Kiyonaga, Editor

On March 3, Pacific Air Charters Incorporated (PACI) announced that they have been approved for on-demand charter service in Hawaii, including for Molokai.

“Our mission at PACI is to offer customizable charter flights designed to meet the unique needs of our clients,” said CEO Marshall Ashley.

For these flights, customers can charter the entire plane for approximately $4,500 each way, explained Katherine Kalei, base manager for PACI. The company can’t, however, sell individual seats yet for commuter service.

“On-demand is far more expensive than if you’re working with the Essential Air Service (EAS) contracts [in commuter service] where you have a subsidy that will help keep the prices down,” said Kalei.

The announcement marks an important step in what could be a potential new commuter airline for Molokai. Molokai residents have endured devastatingly inconsistent flight service since Makani Kai Air merged with Mokulele Airlines in 2020 and Hawaiian Airlines stopped service to Molokai in 2021 – leaving the island with only one airline.

PACI filed their application to begin commuter flights with the U.S. Dept. of Transportation [DOT] back in June 2024. However, the company does not have an estimate on when that application could be approved.

“It’s taken much longer than we anticipated,” said Kalei. “A year’s timeline would be wonderful.”

In the meanwhile, PACI has put in applications for EAS contracts with the U.S. DOT for Kalaupapa, Lanai and Waimea, all of which Mokulele currently holds.

“We continue to submit the EAS proposals but they’re not going to give them to us until we have the commuter. But, we’re keeping ourselves in front of [the DOT],” explained Kalei.

PACI was beat out by Mokulele for an approximately $4 million EAS contract over two years to service Lanai in 2024. Now, they’re trying to gather resident support for their bids. PACI made a trip down to Kalaupapa last week to meet with patient-residents and workers to show them some of PACI’s planes and medical capabilities.

While Ho’olehua airport does not have an EAS contract currently, the Kalaupapa EAS contract stipulates 18 flights per week from Kalaupapa to Ho’olehua along with 12 weekly flights from Honolulu to Kalaupapa.

According to Ashely, the commuter airline service to Ho’olehua hinges largely on whoever holds this Kalaupapa EAS contract.

“You can’t compete against someone who is being subsidized,” Ashley said.

He also said he believes Molokai is currently too small of a market to sustain two competing airlines.

Commuter competition against Mokulele without the bolstering of an EAS contract could be difficult for PACI. Currently, the PACI fleet stands at three nine-seater planes, while Mokulele has 14.

Regardless, PACI is happy to start with their charter services, and grow from there.

“We are open for business,” said Ashley. “And we hope to see you around.”