Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Higher Education, to which was referred S.B. No. 1697, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to assist the University of Hawaii (UH) through its Honolulu Community College (HCC), in the development of the aviation industry and expansion of aerospace training and research in Hawaii by appropriating funds for start-up costs for an integrated airlines training center.

The Chancellor of HCC and Global Flyers Corporation testified in support of this bill. The Department of Transportation and Department of Business, Economic Development, and Tourism supported the intent of the measure.

Over the past 15 years, UH has been seeking to develop and expand programs in the aerospace training and education fields. HCC has been at the forefront of this drive and has established a well-respected training program for aviation mechanics. Recently, HCC also began to develop training programs for airline pilots. Although negotiations were ongoing with Boeing Commercial Airline Company (Boeing) to develop advanced maintenance and pilot training programs, the events of September 11, 2001, put all efforts on hold.

Your Committees find that the airline industry, particularly in the Asia-Pacific region, is expected to experience rapid growth over the next couple of decades with the worldwide fleet of airline aircraft expected to double by 2022. It has been estimated that this will result in nearly 6,000 additional aircraft needing approximately 250,000 new pilots. It has also been estimated that at least 60,000 new pilots will be needed for servicing the Asia-Pacific region alone.

Your Committees note that with Boeing's innovative expansion into the area of servicing the training needs of their clients through a new company called Alteon Training, LLC (Alteon), the interest of Alteon and Global Flyers Corporation (a pilot staffing group), and the strong investment interest of a number of Asian businesses and countries, the time appears right for increased development of aviation training programs.

Although your Committees understand concerns raised regarding the amount of the investment in the development of training facilities, this small investment may account for millions of dollars in returns to the State's economy and is an investment worth further consideration.

As affirmed by the records of votes of the members of your Committees on Transportation and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1697, S.D. 2, and recommend that it pass Second Reading and be referred to the Committee on Finance.