Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1697, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide funding for start-up operations of an integrated airline training center in Hawaii.

Your Committee finds that in a memorandum of understanding between the University of Hawaii Board of Regents and Alteon, a global corporation that serves the training needs of Boeing's airline clients, there was an understanding to develop an ab initio training program for pilots. The program will aim to provide quality commercial aviation training and certify approximately one hundred pilots per year.

The business plan for the program calls for an approximately $11,000,000 start-up investment. The China Aviation Development Foundation has offered $5,000,000 in aircraft and flight training equipment, and Taiwanese executives have expressed strong interest in providing $4,000,000 in start-up loans. This measure would cover the remaining start-up costs, which are for expenses as a one-time investment and would enable the University of Hawaii to serve as a catalyst to start the integrated airline training center.

Upon further review, your Committee amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1697, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1697, S.D. 2.