Okay, my two cents worth.

The "new" airline is actually Mesa, DBA go!, www.iflygo.com.
While the new low fares will be good for Hawai'i I think they will be short lived. The cards are stacked against go! and it doesn't seem likely they'll make a 'go!' of it. (pun intended )

1. There are already 3 airlines that provide interisland service. There are only just so many customers to go around. And, go! isn't connected with any mainland carrier to feed them tourists. Their hope is to find a niche flying locals.

2. This is far from the first time someone has tried to invade the skies of Hawai'i. HA and AQ have never stood for outside competition and I don't think they will allow it this time. Their M.O. is to run the new guy out of town. To date they have been very sucessful in doing just that.

3. A little insider infomation from a reliable source I'm not allowed to reveal has it that Mesa is not in very good financial condition (okay, so most of the airlines industry is hurting). This source holds a good portion of Mesa's aircraft portfolio and knows just how far in arrears the company is on its lease payments.

With Mesa's financial condition and the airline business climate in Hawai'i in general it doesn't seem too likely that they will succeed.