STAND. COM. REP. NO.3351

Honolulu, Hawaii

, 2002

RE: S.C.R. No. 152

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs, to which was referred S.C.R. No. 152 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING CONGRESS TO ENACT ENABLING LEGISLATION TO PERMIT STATE REGULATION OF INTERISLAND AIR CARRIERS BY AN AIR CARRIER COMMISSION PURSUANT TO ACT 332, SESSION LAWS OF HAWAII 1993,"

beg leave to report as follows:

The purpose of this measure is to request the United States Congress to enact enabling legislation to permit state regulation of interisland air carriers by an air carrier commission pursuant to Act 332, Session Laws of Hawaii 1993.

Your Committees received comments on this measure from the Department of Transportation and Hawaiian Airlines.

The federal Airline Deregulation Act of 1978 prohibits states from regulating the routes, rates, or services of airlines operating in interstate commerce. Federal statutes and case law make clear that air travel between islands within Hawaii is considered interstate travel, and therefore the State cannot regulate its interisland carriers.

The State's powerlessness with regard to interisland air travel is troubling, because over 95% of persons traveling between islands do so by air. In addition, most perishable cargo is shipped between islands via air.

Although the proposed merger between Hawaiian airlines and Aloha airlines has been terminated, the concern it caused among government officials and the community underscores our State's reliance on interisland air travel.

Act 332 was enacted in 1993 to give the State some measure of control over interisland air travel, but Act 332 cannot be implemented without federal enabling legislation to exempt Hawaiian interisland air travel from the federal Airline Deregulation Act of 1978.

Your Committees believe that it makes no sense to classify interisland air travel as interstate travel. Furthermore, your Committees feel strongly that the State of Hawaii should have the authority to regulate interisland air travel, which is vital to the health, welfare, and safety of our residents. Therefore, your Committees support this measure, and strongly urge our Congressional representatives to do everything possible to support federal enabling legislation.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 152 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs,

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DONNA MERCADO KIM, Chair

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CAL KAWAMOTO, Chair