HONOLULU, July 17, 2012 /PRNewswire/ -- Hawaiian Airlines today implemented a new fare structure for neighbor island travel that lowers ticket prices across all of its fare classes from 4 to 25 percent.

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The new rates, which are available for booking today on Flights to Hawaii, Hawaii Vacations & Travel - Hawaiian Airlines, are designed to stimulate increased kama'aina travel.

Under the new fare structure, the lowest fare for a one-way nonstop interisland flight (including taxes and mandatory federal fees) is $65 for travel from Honolulu to Kahului and Lihu'e.

The new structure's three lowest fares from Honolulu to Kahului, Lihu'e, Hilo and Kona are all lower than the previously published lowest web fare (see chart below).

In addition, the airline's parent company, Hawaiian Holdings, has signed a Letter of Intent to acquire turbo-prop aircraft with the aim of establishing a subsidiary carrier to serve routes not currently in Hawaiian's neighbor island system.

"We are committed to providing safe, frequent and reliable service that allows our residents to travel more easily between all the islands, and we believe the additional capacity and new fares will encourage that," said Peter Ingram, Hawaiian's executive vice president and chief commercial officer.The new fare structure complements the additional neighbor island capacity and routes Hawaiian introduced earlier this year. Over the past year, Hawaiian has increased capacity by 13 percent and created a Maui hub to increase service between the Valley Isle, Kaua'i and Hawai'i Island. The turbo-prop subsidiary will allow Hawaiian to further expand capacity with daily flights to rural areas.

Hawaiian has offered "Hawaiian Saver" fare sales over the last several months as a way to test customer response to a variety of pricing options, explained Ingram. The Hawaiian Saver fare, which has some restrictions, proved to be attractive to highly cost-conscious travelers. As a result, Hawaiian Saver fares will now anchor the airline's fare structure as a restricted "guaranteed lowest available fare." All other base fares have also been reduced to provide attractive pricing throughout the day on all of Hawaiian's 170 daily neighbor island flights.

"By offering a greater variety of pricing options across our flight schedule every day we hope to make it easier for people to take the extra trip they might not have taken if the lower fares weren't available," said Ingram. "Having said that, it will always be true that the best value is available to those who book early on HawaiianAir.com, and we encourage all of our customers to do that."