WHEREAS, Hawaii continues to cope with the economic effects of the September 11, 2001, terrorist attacks while anticipating more economic setbacks from an impending war with Iraq; and

WHEREAS, air travel throughout the islands was perhaps hit the hardest as fear of flying greatly depressed the industry; and

WHEREAS, major interisland carriers have made significant cutbacks in salaries, jobs, ticket coupons, and flights in an effort to cut costs and make interisland flights profitable; and

WHEREAS, the demise of the flight coupon, a staple of island travel for more than 30 years, may be the most tangible symbol of the dramatic change that has consumed the Hawaii airline industry in the past year; and

WHEREAS, coupled with rigorous new security measures, it also effectively ends the era of last-minute, jump-on-the-next-flight excursions that made interisland travel as effortless as catching the bus; and

WHEREAS, eliminated coupons and less flights make taking an interisland flight much more difficult, particularly for the average interisland commuter and frequent business traveler; and

WHEREAS, though these changes may help to bolster the business of the interisland carriers, consumers and frequent business travelers are left with less options and less flights; and

WHEREAS, the lack of seat availability and increased prices have had a significant negative impact on interisland business activity; and

WHEREAS, the Legislature may be willing to support the interisland airline industry with tax credits, waivers, and other legislative measures to facilitate the industry; and

WHEREAS, though the Legislature acknowledges the need for airlines to be profitable, the Legislature may condition existing or future public benefits which are extended to this industry upon the industry's willingness to expand interisland flight availability; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, that the Department of Business, Economic Development, and Tourism is requested to convene a task force to analyze the economic impacts of current limited interisland flight availability on visitor industry traffic, daily commuters, and frequent business travelers; and

BE IT FURTHER RESOLVED that the task force make recommendations on how the interisland carriers may structure their business models to conform to Hawaii's unique multi-island, economic situation while considering impacts to commuters and frequent business travelers residing on the neighbor islands; and

BE IT FURTHER RESOLVED that the task force members include representatives from interisland carriers, appropriate county designees, frequent and business flyers and commuters, and other members invited to participate by the Director of Business, Economic Development, and Tourism; and

BE IT FURTHER RESOLVED that the task force submit a report on its findings and recommendations to the Legislature not less than twenty days prior to the covening of the 2004 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Director of Business,

Economic Development, and Tourism, Aloha Airlines, Hawaiian Airlines, and the Mayors of each county of the State.

Report Title:

Interisland Carrier Task Force; DBEDT