Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs, and Government Operations and Economic Development, to which was referred S.C.R. No. 88 entitled:

beg leave to report as follows:

The purpose of this measure is to request a study on the price setting mechanisms and strategies of Hawaii's interisland air carriers.

Offering comments on the measure was the Department of Business, Economic Development, and Tourism.

Your Committees find that this measure is designed to protect both Hawaii's consumers and tourist industry by ascertaining the various causes that contribute to the high price of airfare that Hawaii's citizens and out-of-state tourists must pay for interisland travel. High interisland fares negatively impact the State's economy in the form of lost revenue as interisland passenger numbers continue to decline due, in part, to high ticket prices. The collection and analysis of this important data will enable the Legislature, members of the public, and the interisland airline industry to work together in a collaborative process in making informed decisions regarding this issue.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs, and Government Operations and Economic Development that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 88 and recommend its adoption.