The ripples caused by last week’s airline shake-up have reached Washington, D.C., where today a panel of industry representatives will address Congress on the challenges faced in the Hawai‘i market.
Representatives from the state’s airline industry — including David Banmiller, president of Aloha Airlines, and Les Murashige, chief operating officer of Island Air — will field questions from the Senate Committee on Commerce, Science, and Transportation.
The hearing will examine the current status of the Hawai‘i air service market, the implications of Aloha’s bankruptcy declaration, service to rural communities in the state, and how Congress might better respond to the turbulence experienced of late.
Aloha filed for Chapter 11 bankruptcy protection March 20, and a week and a half later terminated its passenger service operations. ATA Airlines followed with its own bankruptcy filing April 2, and by the next day had discontinued all flights.
In the absence of two major carriers, the remaining interisland and trans-pacific airlines have worked to accommodate thousands of stranded passengers. On Friday, the state tourism agency responded by spending $5 million to charter planes and help get people where they need to go.
In addition, the state and counties have jumped to the aid of more than 2,000 Hawai‘i residents who lost their jobs.
Aside from the short-term impact of the airlines’ dissolution, many industry experts have speculated about the long-term effects within Hawai‘i as well as whether this event could be the canary in the coal mine for the industry at-large.
Sen. Daniel Inouye, D-Hawai‘i, chairs the Commerce, Science, and Transportation Committee and commented last week that the islands’ unique geography and rural communities have presented challenges for the air service industry.
“Aloha’s declaration of bankruptcy and the end of its passenger service have driven that point home,” Inouye said. “Also, the state has experienced problems with air service to small, isolated communities among the islands over the past several years.”
Inouye will deliver an opening statement at the hearing, as will Rep. Mazie Hirono, D-Hawai‘i. Other members of the Hawai‘i congressional delegation have been invited to testify or to submit a statement.
Panelists to address the committee include James C. May, president and CEO of Air Transport Association; Michael W. Reynolds, acting assistant secretary of transportation for aviation and international affairs at the U.S. Department of Transportation; and Vincent K. Snowbarger, deputy director for operations at Pension Benefit Guaranty Corp.
Mesa Airlines spokesman Paul Skellon said CEO Jonathan Orstein “will not, on this occasion, be present at the hearing.”
The hearing is available via webcast at www.commerce.senate.gov today starting at 8:30 a.m. Hawai‘i Standard Time.
• Blake Jones, business writer/assistant editor, can be reached at 245-3681 (ext. 251) or bjones@kauaipubco.com.eached at eedmands@kauaipubco.com
