HOUSE OF REPRESENTATIVES

H.C.R. NO.

105

 

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

 

STATE OF HAWAII

PROPOSED

 

 

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

strongly urging the United States Congress to enact federal legislation to allow Hawaii to regulate air carriers operating between islands in the State UNDER Chapter 261C, Hawaii Revised Statutes.

 

 


     WHEREAS, as an island state where the counties are separated by many miles of open ocean, the State of Hawaii is critically and uniquely dependent upon air transportation services as the only efficient way to transport passengers, both residents and visitors alike, between the islands of the State; and

 

     WHEREAS, today, many residents commute daily between islands by air and are thus highly dependent for their livelihood on convenient, reliable, safe, and affordable air transportation services; and

 

     WHEREAS, air transportation is also the only way to move many locally produced goods, including newspapers, produce, and other perishable items, to their ultimate island destinations for sale in a timely manner; and

 

     WHEREAS, for approximately the last 60 years, interisland air transportation in Hawaii has been provided largely by two carriers, Aloha Airlines ("Aloha"), and Hawaiian Airlines, Inc. ("Hawaiian"), who vigorously competed against each other; and

 

     WHEREAS, on December 19, 2001, due in large part to the tragic events of September 11, 2001, and the devastating effect these events had on the airline industry, Aloha and Hawaiian announced that they considered merging into a single airline to be owned under a new holding company to be called Aloha Holdings, Inc.; and


     WHEREAS, the Legislature was concerned that the proposed merger of Aloha and Hawaiian would eliminate competition for interisland air transportation services and create the potential for a monopolistic market that would dictate fee structure, flight schedules, and levels of service that would adversely affect Hawaii's already high cost of living; and

 

     WHEREAS, with the recent demise of Aloha, concerns regarding a single, dominant air carrier for Hawaii's interisland transportation needs have once again been raised; and

 

     WHEREAS, although additional air carriers have entered Hawaii's interisland market including go! Airlines, Mokulele Air, Pacific Wings, and Aloha Island Air, these carriers do not currently have the lift capacity to adequately address Hawaii's interisland transportation needs; and

 

     WHEREAS, concerns over the ability of a single air carrier to dominate intrastate air traffic is not new to the Legislature as the same fears prompted the Legislature to enact Act 332, Session Laws of Hawaii 1993 ("Act 332"), which was codified as Chapter 261C, Hawaii Revised Statutes, which established an Air Carrier Commission to regulate interisland air travel, contingent upon federal enabling legislation permitting such a scheme; and

 

     WHEREAS, the federal Airline Deregulation Act of 1978 preempts states from regulating interstate air transportation and air transport between points within a state, including between two islands in Hawaii, is also considered interstate air transport by virtue of the air carriers' receiving certification to operate such services from the United States Department of Transportation; and

 

     WHEREAS, only enactment of federal legislation will permit Hawaii to regulate interisland air carriers; and

 

     WHEREAS, the Legislature finds that in light of the recent events regarding the bankruptcy and closing of passenger service of Hawaii's second largest interisland carrier, Aloha, the need again arises for federal legislation to be enacted to allow Hawaii to regulate interisland air carriers; now, therefore,


     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the Senate concurring, that the Legislature strongly urges the United States Congress to enact federal legislation to allow Hawaii to regulate air carriers operating between islands in the State through the implementation of state regulatory statutes; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States, the Speaker of the United States House of Representatives, the President of the United States Senate, the United States Secretary of Transportation, the Governor, and to the members of Hawaii's Congressional delegation.

 

 

Report Title: 

Hawaii Regulation of Air Carriers; Federal Legislation; Monopoly