Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.C.R. No. 27, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to ease the difficulties experienced by inter-island travelers and commuters in scheduling airline flights. Specifically, this measure requests Hawaii's Congressional delegation to ask the United States Department of Justice to:

A representative of Hawaiian testified in support of the intent of this measure.

Hawaii's airways act as the State's highways in the sky, allowing citizens and tourists alike to travel between the islands. Hawaiian and Aloha are two air carriers that provide this necessary inter-island air service. Without these transportation services, commuting or traveling between islands would be almost impossible, since no ferry system exists between islands.

Your Committee finds that recent global events, including the terrorist attacks of September 11, 2001, and the war with Iraq have weakened the State's economy and devastated Hawaii's air travel industry. In an attempt to alleviate some of the impacts these events have had on the airline industry, the United States Secretary of Transportation was authorized by the President of the United States to grant antitrust immunity to agreements between air carriers providing air transportation within a single state.

Although an Inter-Island Cooperation Agreement (Cooperation Agreement) exists between Hawaiian and Aloha which has been granted immunity from anti-trust laws, this Cooperation Agreement has not been effective in allowing Hawaiian and Aloha to be profitable in their respective inter-island operations and may result in further flight restrictions. Your Committee notes that, currently, specifically discussing flight schedules between Aloha and Hawaiian is not granted immunity from anti-trust laws and that this measure attempts to address this problem to allow Hawaiian and Aloha to remain solvent, while still maintaining air transportation services for the residents of this State.

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 S.C.R. No. 27, S.D. 1, and recommends that it be referred to the Committee on Consumer Protection and Commerce.