THE SENATE	S.C.R. NO.	121
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

REQUESTING HAWAII'S CONGRESSIONAL DELEGATION TO PROPOSE AMENDMENTS TO THE AIRLINE DEREGULATION ACT TO EXEMPT HAWAII from the UNITED STATES' PREEMPTION OF STATE ECONOMIC REGULATION OF INTERSTATE AIR TRANSPORTATION.

     WHEREAS, the Federal Aviation Administration has exclusive responsibility for the safe and efficient management of the navigable air space of the United States pursuant to the Federal Aviation Act; and

     WHEREAS, the United States Congress deregulated domestic air transportation pursuant to enactment of the Airline Deregulation Act of 1978 (Public Law No. 95-504); and

     WHEREAS, the Airline Deregulation Act of 1978 amended the Federal Aviation Act to prohibit states, political subdivisions of a state, or political authority of at least two states from enacting or enforcing a law, regulation, or other provision having the force and effect of law related to the price, route, or service of an air carrier providing interstate air transportation, including foreign air transportation, interstate air transportation, or the transportation of mail by aircraft; and

     WHEREAS, the rationale of the Airline Deregulation Act of 1978 is to ensure maximum reliance on competitive market forces in order to best further efficiency, innovation, and low prices as well as the variety and quality of air transportation services (Morales v. Trans World Airlines, Inc. 504, U.S. 374 (1992)); and

     WHEREAS, the Morales opinion adopted the standard that state enforcement actions having a connection with or reference to airline rates, routes, or services are pre-empted; and

     WHEREAS, Alaska was specifically granted in statute an exemption from the Airline Deregulation Act under title 49 United States Code section 41713, which provides in part that the federal preemption provisions of the Act do not apply to air transportation provided entirely in Alaska; and

     WHEREAS, Hawaii should have the ability to regulate the price, route, or service of an air carrier for the portion of service providing transportation entirely in Hawaii, which requires a statutory exemption similar to Alaska; and

     WHEREAS, Hawaii needs such an exemption to ensure that stable and continuing air service is accessible to all areas of the State, particularly the small, rural airports; and

     WHEREAS, Hawaii is unique among all the states because Hawaii is an island state in which air transportation is often the only practical form of intrastate transportation, and Hawaii residents fly frequently among the islands to visit family and friends; and

     WHEREAS, Hawaii has only one major interisland air carrier that has no formidable competition; therefore, regulation of interstate air transportation is necessary to limit monopoly pricing and ensure service to less profitable routes; now, therefore,

     BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that Hawaii's Congressional delegation is requested to propose amendments to the Airline Deregulation Act to exempt Hawaii from the United States' preemption of state economic regulation of interstate air transportation; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to Hawaii's Congressional delegation.

OFFERED BY:

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Report Title: 

Airline Deregulation; Hawaii Exemption