WHEREAS, the events of September 11, 2001, weakened the State's economy and in particular hurt the State's air travel industry; and

WHEREAS, the threat of war looms as well as a concomitant blow to the local and national economies; and

WHEREAS, recent efforts to cut costs for interisland flights means less flights, more inconvenience, and potentially higher prices for interisland travelers; and

WHEREAS, Hawaiian and Aloha Airlines are working under a temporary federal antitrust exemption granted September 30, 2002, that allows them to coordinate seat capacity on some routes in the interisland market; and

WHEREAS, the one-year exemption was intended to provide both airlines the opportunity to adjust their interisland services in ways that will increase efficiency and reduce costs; and

WHEREAS, the U.S. Department of Transportation at any time has the discretion to amend, modify, or revoke its approval of all, or any portion of the exemption agreement if it is determined that the carriers have acted in a manner that no longer is in the public interest; and

WHEREAS, since the exemption took effect, many commuters and other business travelers are finding it difficult to secure interisland flights, particularly during the morning and evening commuter hours; and

WHEREAS, the U.S. Department of Transportation's order approving the exemption does not enable the carriers to coordinate individual route schedules; and

WHEREAS, the airlines' ability to share capacity as allowed by the exemption agreement is ineffective without the ability of both airlines to coordinate and share individual route schedules, and therefore may not be in the public's interest; and

WHEREAS, an extension of the exemption is necessary in the face of war and another likely economic downturn; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, that Hawaii's congressional delegation is requested to look into the expansion of the terms of the antitrust exemption agreement to enable Aloha and Hawaiian Airlines to share flight scheduling to better accommodate travelers during the morning and evening commute hours; and

BE IT FURTHER RESOLVED that Hawaii's congressional delegation is requested to look into extending the deadline for the antitrust exemption for another year; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the U.S. Department of Transportation, the Governor, and each member of Hawaii's congressional delegation.

Report Title:

Antitrust Exemption; Expansion; Flight Schedule Sharing