LIHU’E – It was like preaching to the choir. The state Senate and House are both moving resolutions in opposition to the proposed merger of Hawaiian Airlines and Aloha Airlines into one carrier. The people of Kaua’i, both for themselves
LIHU’E – It was like preaching to the choir.
The state Senate and House are both moving resolutions in opposition to the proposed merger of Hawaiian Airlines and Aloha Airlines into one carrier.
The people of Kaua’i, both for themselves and through elected county councilmembers, voiced strong opposition to the proposed merger at a meeting called last night by two state Senate committees.
“I am totally against it,” said Councilmember Bill “Kaipo” Asing. “And I’ll tell you why. I believe in competition,” he said. “Competition is a must. Competition is good for us.”
“The only thing worse than the merger is both airlines go out of business,” said County Councilmember Bryan Baptiste, adding that the Kaua’i people who have been calling him on the issue worry most about higher fares, fewer seats, staff cutbacks at the airlines leading to a “domino” effect of related-industry job losses, and even less cargo space for diversified crops and other goods for export off the island.
It would make no sense to have fully staffed hotels on the island if there aren’t enough flights coming to the island to put people in the hotels, he added.
Martin Rice of Kapa’a asked how the airlines and outside company proposing the merger could even proceed when faced with all the federal and state anti-trust (lack of competition) issues.
“I am just totally opposed to the merger,” said Gini Stoddard of Kapa’a, adding that a strike in a one-carrier market would leave Neighbor Island residents in the same position Kaua’i was in after Hurricane ‘Iniki: stuck with no way to get anywhere.
Rodney Kimura, state deputy attorney general, said even if his office and the U.S. Department of Justice anti-trust examiners found no need to oppose the proposed merger on grounds of elimination of competition, citizens could still bring an anti-trust lawsuit in an attempt to stall the planned merger.
Both state and federal anti-trust experts are examining the proposed merger documents, and are weeks away from making decisions, Kimura said.
Around 20 people, including County Council Chair Ron Kouchi and Councilmember Randal Valenciano, gathered at the Historic County Building County Council chambers for the fourth of four Neighbor Island meetings of state Senate committees seeking public input regarding the proposed merger.
State Sen. Ron Menor (D, Waipahu, Crestview, Mililani), chair of the Senate Committee on Commerce, Consumer Protection and Housing, said Kaua’i was the only venue where councilmembers attended and testified.
When issues came up about whether or not legislative resolutions or public input will matter when anti-trust decisions are to be made, Kimura commented that if Aloha, Hawaiian and Turnworks, the entity proposing the merger, are truly good corporate decisions, the public and lawmaker input will be listened to, and important.
The Kaua’i Chamber of Commerce has no official position on the merger matter, with President Mamo Cummings saying the Chamber doesn’t have enough information to take an informed position.
Legislation moving in the state Legislature would extend the life of a state Air Carrier Commission, which if given authorization from the U.S. Congress could be in position to regulate interisland airfares and other matters.
Senators encouraged councilmembers to pass resolutions opposing the merger, and encouraging the U.S. Congress to pass legislation enabling the Air Carrier Commission to regulate interisland airfares.
Before the 2002 state Legislature, there are several resolutions pertaining to the proposed merger.
House Concurrent Resolution 38 and House Resolution 21 both remain before House committees, and both urge the state Legislature to formally oppose the merger.
Senate Concurrent Resolution 33, which will be heard on Tuesday, March 12, also states opposition to the merger, and is signed by a majority of the 25 senators.
“The loss of competition due to the merger will have a severely negative impact on residents of and visitors to Hawai’i, and therefore is not in the best interest of the public’s safety and welfare,” reads a portion of House Resolution 21, like the concurrent resolution authored by state Rep. Helene H. Hale (D, Puna, Ka’u)
Senate Bill 313, Senate Draft 2, which has successfully moved to the state House, proposes continuance of the Air Carrier Commission that has some regulatory control over interisland airfares, services and practices.
It was introduced by Sen. Jonathan Chun (D, east, south and west Kaua’i, Ni’ihau) and Sen. Cal Kawamoto (D, Waipahu, Pearl City), and could possibly be used to regulate a single carrier.
Under current law, the Air Carrier Commission is set to expire Sunday, June 30, 2002. In order for it to have teeth, though, it needs federal enabling legislation.
Staff Writer Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
House hearings on merger to be aired
Ho’ike is set to air the state House Economic Development & Business Concerns Committee hearing on the proposed merger of Hawaiian and Aloha airlines.
The committee heard testimony on measures opposing the merger.
The hearing held yesterday will be rebroadcast on Ho’ike. Check the public access station’s schedule for the time of the airing.Kauaians ‘totally against’ air-merger plan
