Now on the Hot Seat: Superferry President and CEO Tom Fargo
November 19th, 2008 by Jeanne Mariani-BeldingWelcome to the Hot Seat.
Joining us live for the next hour to answer your questions is Hawaii Superferry’s president and CEO retired Adm. Tom Fargo.
Adm. Fargo will answer your questions regarding Hawaii Superferry operations and more live from 2 to 3 p.m.
Hawaii Superferry’s was recently in the news regarding its decision to delay the start of Big Island service for a year and cutback on Maui runs — yet another reminder of the tough economy ahead.
Got those questions ready? Just a quick reminder of our Hot Seat ground rules: Please keep your questions concise and on point so we can get through as many of them as possible; and let’s keep the conversation civil — no personal attacks please.
Let’s chat.
Tags: Fargo, Mariani-Belding, Superferry
November 19th, 2008 at 2:20 pm
Aloha Admiral Fargo, and welcome to the Hot Seat.
To get us rolling, here’s a question sent earlier via e-mail from Barbara:
As a president and CEO here in Hawaii, what is your take our economy? Today’s headlines look absolutely grim, frankly.
November 19th, 2008 at 2:25 pm
What is the situation with Kauai (protesters) as it pertains to your business?
November 19th, 2008 at 2:27 pm
Aloha everyone, thanks Jeanne for having us on the Hot Seat today.
Thanks for the question Barbara,
We are experiencing the same economic conditions you are seeing in the country and rest of the world. Japan is in recession, we are probably in recession depending on your definition. Tourism is down which impacts the airlines, hotels and retailers. It's going to take a while to rebound. So this is a time where we all pull together to help each other through a tough patch and try to make good decisions such that the community will come out of this stronger.
November 19th, 2008 at 2:27 pm
Due to the cut back in services between the islands and putting the additional ship on hold, are you planning on raising the service fees? If so, by how much? Also, since fuel prices have gone down does this play in the future revenue or service fee projections?
November 19th, 2008 at 2:33 pm
I would like to know if there has been any problems with the whale migration this year? Were there any near misses or close calls, and how are the whale detection instruments working out?
November 19th, 2008 at 2:33 pm
This one comes via email Joe M.:
Ask Tom for an update if and when Kauai will finally if ever see and actually use the Superferry. Also, ask Tom for ridership figures daily, weekly, monthly. Please request numbers of individuals to include vehicle types who are using Superferry. What does the future really hold for the Superferry?
November 19th, 2008 at 2:33 pm
Jo:
What is the situation with Kauai (protesters) as it pertains to your business?
_____________________
Providing service to the people of Kauai has always been a goal of HSF and we are optimistic we'll be able to do so. With the draft EIS scheduled for completion in January 2009 and all of the data for more than 7 months of operations between Oahu and Maui, everything there is to know will be available to the public. In passenger intercept surveys 99 percent of riders indicate they would recommend it to their family and friends. It would appear that there is a strong sentiment within Kauai for our service.
November 19th, 2008 at 2:33 pm
It's great to see that we have an alternative for inter island travel. Is business picking up or have you also seen a decline in ridership because of the economy? What islands are you currently servicing?
November 19th, 2008 at 2:36 pm
I want to ask you about emotional support service animals. I was told by your corporate office yesterday that although I have a letter from my doctor for my rat as an emotional support service animal, that I couldn't bring him on board.
I asked to see where the rules showed me this in writing and she was supposed to send it to me, but didn't. She also told me to read the tariff, which I did and on page 14 as I read it --I should be allowed to take him with the doctor letter. Can you show me in writing otherwise? Thank you.
November 19th, 2008 at 2:39 pm
What ever happened to the other superferry? Are you still planning on having two here in Hawaii?
November 19th, 2008 at 2:40 pm
Randy:
Due to the cut back in services between the islands and putting the additional ship on hold, are you planning on raising the service fees? If so, by how much? Also, since fuel prices have gone down does this play in the future revenue or service fee projections?
____________________________________
We have not been passing the fuel surcharge along to our passengers and non-commercial vehicles since we started expanded operations in April and have no plans to for the foreseeable future. Our fees are actually approved by the Public Utilities Commission (PUC) which has provided some flexibility in adjusting fares within their approved boundaries. Our expectation is that we will make minor adjustments within this range based on market conditions, but it is clearly to our advantage to keep our prices low and competitive, and we believe they are. Plus we don't charge for bags, surfboards, or other recreational items.
November 19th, 2008 at 2:41 pm
Do you have contracts with the military to hull equipment, personnel and supplies to the outer islands? How much of your business is supported by the military? On another note, do private businesses contract out with you to ferry equipment to and from the islands?
November 19th, 2008 at 2:44 pm
John:
I would like to know if there has been any problems with the whale migration this year? Were there any near misses or close calls, and how are the whale detection instruments working out?
____________________________________
HSF executes the most comprehensive whale avoidance policy of any ocean operator in the state and one that is supported by the Hawaiian Islands Humpback Whale National Marine Sanctuary Advisory Council. Like any ocean operator, we can't guarantee that an incident will never occur, but we can guarantee that we are taking extensive preventative measures to avoid such an incident. You may have seen the recent comprehensive article in the Advertiser talking to our whale avoidance technology and procedures both day and night. If you’re interested, our whale avoidance policy is available on our web site at http://www.HawaiiSuperferry.com.
November 19th, 2008 at 2:54 pm
Has there been any thought or discussion on working with travel agencies to do interisland packages? Something on the lines of; stay on Oahu for 2 days, travel to Maui on the Superferry and stay there for two days.
November 19th, 2008 at 2:55 pm
This one comes via email Joe M.:
Ask Tom for an update if and when Kauai will finally if ever see and actually use the Superferry. Also, ask Tom for ridership figures daily, weekly, monthly. Please request numbers of individuals to include vehicle types who are using Superferry. What does the future really hold for the Superferry?
______________________________
I think I addressed the Kauai timing and opportunity in my previous answer.
Ridership over the summer ramped up right on our first year projections to a total of about 37,000 passengers in July. The numbers fell off as projected in the September travel shoulder and then bounced back up in October, where we carried on average 280 people a trip. To date, we've carried over 180,000 passengers and 50,000 vehicles. The vehicle mix includes personal vehicles, and two basic classes of commercial vehicles; large carriers such as Loves Bakery, Fed EX, Freight Forwarders and significant numbers of small business trucks. Passengers to date have been approximately 85 percent kamaaina with 50 percent repeat travelers. One of the reasons we're particulary optimistic is we are just starting to gain traction with the tourist markets and expect to be in full swing in the spring as the tourist packages we've been working on are available.
November 19th, 2008 at 2:57 pm
Lisa:
November 19th, 2008 at 2:33 pm
It’s great to see that we have an alternative for inter island travel. Is business picking up or have you also seen a decline in ridership because of the economy? What islands are you currently servicing?
___________________________
We've seen a little bit of a slow down but it has not been dramatic, I think largely because we are relatively inexpensive, especially for families. We are currently sailing 7 roundtrips to Maui from Oahu.
November 19th, 2008 at 3:03 pm
Bonnie:
November 19th, 2008 at 2:36 pm
I want to ask you about emotional support service animals. I was told by your corporate office yesterday that although I have a letter from my doctor for my rat as an emotional support service animal, that I couldn’t bring him on board.
I asked to see where the rules showed me this in writing and she was supposed to send it to me, but didn’t. She also told me to read the tariff, which I did and on page 14 as I read it –I should be allowed to take him with the doctor letter. Can you show me in writing otherwise? Thank you.
____________________
This is the first time we've had this specific question so we'll have to do a little more research. Obviously our tarrif can't cover every possible situation but our intent of course is to meet both spirit and the intent of both the law and our tarrif. Please contact Lani Olds, lani.olds@hawaiisuperferry.com, and I'll have a conversation with her in advance of your email.
November 19th, 2008 at 3:06 pm
Tina:
November 19th, 2008 at 2:39 pm
What ever happened to the other superferry? Are you still planning on having two here in Hawaii?
________________
The second ship is 92% complete and fully painted out in Hawaii Superferry colors. We were equally disappointed that we had to postpone our service to the Big Island, but this was a prudent business decision in an uncertain economic climate. We are anxious to get the second ship here as soon as possible because it's a significant part of our future business plan.
November 19th, 2008 at 3:08 pm
What new technologies for energy efficiency and customer service is HSF implementing?
November 19th, 2008 at 3:09 pm
Billy:
November 19th, 2008 at 2:41 pm
Do you have contracts with the military to hull equipment, personnel and supplies to the outer islands? How much of your business is supported by the military? On another note, do private businesses contract out with you to ferry equipment to and from the islands?
_______________________
Our emphasis has been and will remain that of establishing a regularly scheduled ferry system for the residents, visitors and businesses of Hawaii. That's how we make this a successful business. It's the volume of passengers and vehicles. Certainly we will support our local military. As you may remember, Alakai, in conjunction with the National Guard, provided disaster relief last year during the floods on Maui.
November 19th, 2008 at 3:10 pm
What are the rules regarding things put on top of the vehicle going on the ferry, if they don't fit in the car?
November 19th, 2008 at 3:10 pm
In light of everything that happened with the protest and EIS, if you would have been at the helm from the beginning what would you have done differently? Could things have been handled better?
November 19th, 2008 at 3:13 pm
Tamale:
November 19th, 2008 at 2:54 pm
Has there been any thought or discussion on working with travel agencies to do interisland packages? Something on the lines of; stay on Oahu for 2 days, travel to Maui on the Superferry and stay there for two days.
__________________________
Hi Tamale,
We are working with a wide range of businesses here, including hotels, car rental companies, and golf courses to put packages together. We have a number of Kama'aina Staycations in place right now that get people to a Neighbor Island for a couple of nights of relaxation. These are all on our website so please take a look, and there will be more!
November 19th, 2008 at 3:17 pm
Angel:
November 19th, 2008 at 3:10 pm
What are the rules regarding things put on top of the vehicle going on the ferry, if they don’t fit in the car?
______________________________
Hi Angel,
As long as it does not exceed 8 feet in height, the sky's the limit! That's because the majority of the vehicle deck is limited to 8 feet. However, if you've got something that exceeds 8 feet we can also book you along with the large commercial customers, but the rates are higher above 8 feet.
November 19th, 2008 at 3:18 pm
Where is the second ferry now? Is it making money, and if it does to do you really expect your investors to allow you to take it out of a profitable operation and bring it here?
November 19th, 2008 at 3:23 pm
Dan:
November 19th, 2008 at 3:08 pm
What new technologies for energy efficiency and customer service is HSF implementing?
_________________________
HI Dan,
Fuel efficiency has been a top priority and we have reduced fuel consumption by 30% per roundtrip since starting operations. We have one of the most technologically superior bridge and navigations suites in the country that allow us to operate efficiently and maneuver the ship very quickly and precisely. With respect to customer service, the vast majority of our customers book online and gain all the relevant information and boarding pass before they ever get to the terminal. We are working with our extensive audio visual system to provide both educational opportunities as well as news. And of course you have full internet connectivity with your laptop and cell phone connectivity throughout the majority of the voyage.
November 19th, 2008 at 3:24 pm
BTW if you ever do go to Kauai again remember...
Maui -> Oahu -> Kauai -> Oahu -> Maui
That's the only way it would ever work!
November 19th, 2008 at 3:27 pm
Mitchel:
November 19th, 2008 at 3:18 pm
Where is the second ferry now? Is it making money, and if it does to do you really expect your investors to allow you to take it out of a profitable operation and bring it here?
_______________________
Hi Mitchel,
As I mentioned earlier the second ship is over 90% complete at the shipyard in Mobile, Alabama. Although commercial leasing can be profitable, it is not nearly as attractive to the company and its investors as a full up high-speed ferry system here in Hawaii.
November 19th, 2008 at 3:28 pm
We’re out of time. Thanks for joining us this hour for our conversation with Tom Fargo, president and CEO of Hawaii Superferry. A special thanks, of course, to Tom Fargo for taking the time to answer questions from our readers.
Be sure to watch for excerpts of this community conversation in this week’s Sunday Focus section of The Advertiser.
Stay tuned to see who next week’s guest will be on The Hot Seat.
November 19th, 2008 at 3:29 pm
Thanks very much for the opportunity to answer your questions. Special thanks to Jeanne for the invitation. Mahalo and have a great holiday season!
Aloha,
Tom
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