Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Business and Economic Development and Transportation and Government Operations, to which was referred S.B. No. 1697 entitled:

beg leave to report as follows:

The purpose of this measure is to fund start-up operations of an integrated airline training center.

Your Committees received testimony in support of this measure from the University of Hawaii and Global Flyers Corporation. Your Committees also received comments from the Department of Business, Economic Development, and Tourism.

Your Committees find that the projected worldwide doubling of commercial aircraft will lead to a substantial increase in the demand for trained commercial pilots. Your Committees further find that a unique opportunity exists to establish Hawaii as a preferred source of training for new airline pilots in the Asia-Pacific region. Hawaii is ideally situated to take advantage of this opportunity because of its central-Pacific location, the presence of ideal flight training weather, excellent training facilities already in existence at Kalaeloa airport, participation by Alteon Training L.L.C. (the largest provider of airline flight simulator training), integrated courseware from Global Flyers Corp. that reduces training time and cost while also improving student success rates, the availability of experienced airline training managers to operate the program, and a unique cultural environment that will be comfortable for pilot trainees from the Asia-Pacific region. Your Committees believe that an investment in the start-up costs of this program will yield significant future benefits including the creation of new jobs and increased tax revenues.

Your Committees have amended this measure to clarify that appropriated funds shall be expended for the initial start-up costs associated with the program, and to require the Department of Business, Economic Development, and Tourism to establish benchmarks and prepare a detailed report of program progress.

As affirmed by the records of votes of the members of your Committees on Business and Economic Development and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1697, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1697, S.D. 1, and be referred to the Committee on Ways and Means.