Hawaiian Holdings, Inc. (HA): This Little Airline Has Big China Plans

However, entering China is particularly important because of the size of the opportunity. Beijing has a population of more than 20 million, as does Shanghai. Hong Kong, Guangzhou, and Chengdu (the other three cities listed as opportunities by Hawaiian’s management) are slightly smaller, but still very populous by U.S. standards. Hawaiian is beginning with three flights a week from Beijing, but within a few years China could potentially support four to five flights per day to Hawaii. Moreover, by becoming a first-mover in the Chinese market, Hawaiian Airlines will have an opportunity to build its brand identity and become the preferred airline for travel to Hawaii.

Foolish bottom line
We’re still more than a year away from Hawaiian Holdings, Inc. (NASDAQ:HA) Airlines’ first flights to China. However, the China market has huge potential for Hawaiian, and will play a major role in the company’s growth. Right now, the company’s stock has been beaten down by weaker than expected performance in the past few quarters. However, management gave investors a clear sign of its commitment to profitability on Wednesday by announcing the termination of service to Manila, which had been unprofitable. With a responsive management team and big growth opportunities in China and elsewhere, Hawaiian Airlines is likely to deliver strong long-term stock performance. That’s why I’m viewing the stock’s recent dip as a nice buying opportunity.

The article This Little Airline Has Big China Plans originally appeared on Fool.com is written by Adam Levine-Weinberg.

Motley Fool contributor Adam Levine-Weinberg owns shares of Hawaiian Holdings. Adam Levine-Weinberg has the following options: Long Oct 2013 $6 Calls on Hawaiian Holdings. The Motley Fool has no position in any of the stocks mentioned.

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