STAND. COM. REP. NO. 1631

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 220
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred
H.C.R. No. 220 entitled: 

     "A BILL FOR AN ACT URGING THE AIRPORT DIVISION OF THE
     DEPARTMENT OF TRANSPORTATION AND THE DEPARTMENT OF BUDGET
     AND FINANCE TO WORK CLOSELY WITH AIR CARRIERS SERVING HAWAII
     TO DEVELOP STRATEGIES TO EFFECTIVELY REDUCE AIRPORT SYSTEM
     COSTS TO ACHIEVE LOW AND STABLE AIRPORT LANDING FEES, RATES,
     AND CHARGES,"

begs leave to report as follows:

     The purpose of this House Concurrent Resolution is to reduce
and stabilize airport user costs for airport carriers.

     Your Committee is aware that air transportation for our
island State is very essential for the travels of residents, for
the import and export of goods, and for the arrivals and
departures of millions of vacationing tourists, who serve as the
backbone of our economy.  Your Committee finds that low and
stable landing fees and other charges encourage present air
carriers to add more flights, and new carriers to provide air
service for our State.  Your Committee further finds that the
State and the air carriers must work closely together in
establishing the amounts of landing fees and other charges for
their mutual benefit.
     
     This House Concurrent Resolution requests the Department of
Transportation, Airports Division, and the Department of Budget
and Finance to work closely with the air carrier industry to

 
 
                                 STAND. COM. REP. NO. 1631
                                 Page 2

 
develop strategies to effectively reduce airport system costs,
and that these Departments report their findings and
recommendations to the Legislature no later than twenty days
prior to the convening of the Regular Session of 2000.

     Testimonies in support of this House Concurrent Resolution
were received from the Department of Transportation, the
Department of Budget and Finance, and the Airlines Committee of
Hawaii, representing 22 air carriers serving the State of Hawaii. 

     Your Committee has amended this House Concurrent Resolution
by making technical, nonsubstantive amendments for purposes of
style, clarity, and consistency. 

     As affirmed by the record of votes of the members of your
Committee on Transportation that is attached to this report, your
Committee concurs with the intent and purpose of H.C.R. No. 220,
as amended herein, and recommends that it be referred to the
Committee on Finance, in the form attached hereto as H.C.R. No.
220, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation,



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair