STAND

STAND. COM. REP. NO.942-02

Honolulu, Hawaii

, 2002

RE: H.C.R. No. 38

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.C.R. No. 38 entitled:

"HOUSE CONCURRENT RESOLUTION OPPOSING THE PROPOSED MERGER BETWEEN HAWAIIAN AIRLINES, INC. AND ALOHA AIRLINES, INC,"

begs leave to report as follows:

The purpose of this concurrent resolution is to declare the Legislature's opposition to the proposed merger between Hawaiian Airlines and Aloha Airlines.

Testimony in support of this measure was submitted by the American Society of Travel Agents, La'ieikawai Association, Inc., Citizens for Competitive Air Travel, the Representative of the 4^th District, and eleven concerned citizens. Testimony in opposition to this measure was submitted by the Hawaii Tourism Authority, Hawaii Air Cargo, Inc., Air Line Pilots Association Council 80-Aloha Airlines, and TurnWorks, Inc.

Your Committee has amended this measure by deleting its contents and replacing it with the following provisions:

(1) The Legislature expressing its concern over the proposed merger of Hawaiian Airlines and Aloha Airlines; and

(2) The Legislature requesting the Attorney General and the United States Department of Justice to determine whether any reasonable alternatives to the proposed merger exist that would preserve a multicarrier market, and, if such alternatives exist, to disapprove the merger.

Your Committee has further amended this measure by changing the title to read:

"EXPRESSING the hawaii state legislature's CONCERN OVER THE PROPOSED CONSOLIDATION OF THE HAWAII INTERISLAND AIR TRANSPORTATION MARKET BY MERGER OF HAWAIIAN AIRLINES AND ALOHA AIRLINES INTO A SINGLE PRINCIPAL CARRIER, AND REQUESTING THE ATTORNEY GENERAL AND THE UNITED STATES DEPARTMENT OF JUSTICE TO DETERMINE WHETHER REASONABLE ALTERNATIVES TO THE PROPOSED MERGER EXIST TO PRESERVE A MULTICARRIER MARKET AND, IF SO, TO DISAPPROVE THE MERGER."

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 38, as amended herein, and recommends that it be referred to the Committee on Transportation in the form attached hereto as H.C.R. No. 38, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

		____________________________ LEI AHU ISA, Chair