THE SENATE

S.C.R. NO.

43

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

ENCOURAGING ALL STATE AGENCIES TO DO EVERYTHING POSSIBLE TO FOSTER COMPETITION IN THE INTERISLAND AIR TRANSPORTATION MARKET.

 

WHEREAS, as an island state, Hawaii residents depend heavily on air transportation to travel between islands; and

WHEREAS, the State of Hawaii has a compelling interest in ensuring that residents and visitors are able to travel freely between islands, without being subject to exorbitant fares and irregular or inconvenient schedules; and

WHEREAS, there are many small, rural airports that serve important segments of the State's population, which must continue to be served with air transportation; and

WHEREAS, many State residents also depend on the local airlines to carry valuable and perishable cargo between islands; and

WHEREAS, there is no reliable ferry service to transport persons between islands; and

WHEREAS, for over fifty years the State of Hawaii has been served by two local air carriers, Aloha Airlines and Hawaiian Airlines; and

WHEREAS, in December, 2001, Aloha Airlines and Hawaiian Airlines announced plans to merge into a single corporate entity; and

WHEREAS, if the proposed merger is approved under federal and state antitrust law, all Hawaii residents and visitors will be forced to depend on a single airline to meet their interisland travel needs; and

WHEREAS, following federal deregulation of the airline industry, the State has no authority to influence rates, routes and services of any airline, and Hawaii will also lack outside disciplinary forces that typically come from competitors in the marketplace; and

WHEREAS, without marketplace competition or state regulation, the merged airline entity will have monopolistic power to set rates, routes, and services; and

WHEREAS, it is absolutely critical that another airline enters the interisland service market, in order to foster competition and better serve Hawaii's residents and visitors; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that all government agencies are encouraged to take all necessary steps to foster competition in the interisland air transportation market; and

BE IT FURTHER RESOLVED that the Governor and the Department of Transportation are encouraged to offer counter space and other facilities at Hawaii's airports to potential airline market entrants so that any market entrant will enjoy the same benefits and facilities as Hawaii's current interisland carriers; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor of the State of Hawaii and the Director of Transportation.

 

 

 

OFFERED BY:

_____________________________

Report Title:

Encourages all state agencies to do everything possible to foster competition in the interisland air transportation market.