Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from William Greene - Morgan Stanley.
William Greene – Morgan Stanley
I’m wondering if you can talk a little about, a little bit more color on the RASM. How much of your third quarter is already booked. You sort of talked of a little bit about this, there is a lot of uncertainty around this, and yet your growing capacity, but you have given some pretty negative RASM outlook. So can you sort of talk a little bit about the underlying assumptions there that led to that outlook?
Mark Dunkerley
Yes certainly, bookings are taking place far closer on our Transpacific business, and has customarily been the case, InterIsland has always been a very late booking market. So, when we talk about uncertainty, we just don’t have a great deal of forward visibility beyond about a month to six weeks.
The second point that I would make is that the growth that we are seeing year-over-year is largely the result of the fact that Aloha and ATA collapsed last year. We actually grew in the fourth quarter and a little bit into the first quarter and so it’s not as if we’re growing now, it’s actually fact achieved more of the annualized effects of us moving into the space vacated by Aloha and ATA.
Then the third thing I would say in general is that, we are seeing some discounting out there in the marketplace that is generally being started by our competitors. It’s a very competitive business. We obviously have to remain competitive with that.
Pete, I don’t know if there’s anything you want to add more about the outlook.
Peter Ingram
I think the only thing I might add to that is that if you are comparing year-over-year, some of the variation you see from period-to-period has to do with what happened last year; and I think some of the price increases that were going in place really didn’t take hold until into the third quarter last year and some of the month’s of the quarter I think we’ve got a tougher comp than we did, maybe in part of the second quarter.
William Greene – Morgan Stanley
Okay, I don’t want to put words in your mouth, but the tone I sense is that at best you’re describing the environment as stable. Certainly you’re not suggesting a lot of improvement sequentially, maybe you disagree with that.
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