Report Title:

Essential Air Service Carriers

 

Description:

Appropriates funds to subsidize essential air service providers by paying them an unspecified dollar amount for each essential air service passenger served, subject to the availability of funds.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

2057

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   

A BILL FOR AN ACT

 

relating to essential air SERVICE carriers in hawaii.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that essential air service carriers in Hawaii provide important functions for small communities in the rural and outlying districts of some islands. There are several Hawaii communities affected, including Hana, Maui; Kaluapapa and Hoolehu on Molokai; Lanai City, Lanai; and Kamuela on the Big Island of Hawaii. Residents in these areas depend on essential air service carriers to get to medical appointments, and connect to the larger airlines in Kahului, Hilo, Kona, and Honolulu airports for business, family activities, and vacations. The planes also bring in needed tourist revenues, supplies, mail, and other essentials of daily life.

The future of essential air service subsidies remains in doubt because the federal government is considering repealing the subsidies which make these air services viable. The loss of federal subsidies will negatively affect many residents, including persons who live in communities having regular air service who have relatives living in communities whose air service depends upon essential air service subsidies. One Hawaii based, scheduled essential air service carrier, Pacific Wings, has already announced flight reductions on its Hana-Kahului route.

The purpose of this Act is to support essential air service providers by appropriating funds to provide state subsidies for them. The amounts appropriated are intended to reflect a subsidy of $         for each passenger served.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2002-2003, for Hawaii based, scheduled essential air service carriers providing service to outlying, remote, or rural communities in Hawaii. The amount paid to each carrier shall be determined according to a formula of $         for each passenger served, subject to availability of funds.

SECTION 3. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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