THE SENATE

S.C.R. NO.

152

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT RESOLUTION

 

requesting congress to enact enabling legislation to permit state regulation of interisland air carriers by an air carrier commission pursuant to act 332, session laws of hawaii 1993.

 

WHEREAS, interisland air transportation is of paramount importance to the State and its economy; and

WHEREAS, being an island State, Hawaii is unique among her sister states in having no major highway system connecting various points throughout the State; and

WHEREAS, residents and visitors must depend almost exclusively upon interisland air transportation to meet their mobility needs; and

WHEREAS, consequently, a safe, efficient, and economical interisland air transportation system is essential for the public safety and welfare; and

WHEREAS, of perhaps even more significance to the State's economy is the availability of frequent, reliable, and economical interisland air cargo transportation; and

WHEREAS, an increase in air shipping rates or a reduction in the number of flights to carry cargo interisland will undoubtedly have a detrimental effect on neighbor island farmers and result in higher prices for all commodities shipped by air, including food, medicine, machinery parts, and clothing; and

WHEREAS, accordingly, it is critical that Hawaii's interisland air transportation system continue to operate in a competitive environment to protect consumers from price gouging and unacceptable service levels; and

WHEREAS, the Legislature has long been concerned over maintaining a competitive environment for Hawaii's interisland air transportation system; and

WHEREAS, for example, such concern prompted the Legislature, through Act 332, Session Laws of Hawaii 1993, to establish a comprehensive process to regulate interisland air transportation; and

WHEREAS, Act 332 established an Air Carrier Commission having general supervision over all Hawaii air carriers providing air transportation and any related company; and

WHEREAS, Act 332 further provided that no person may engage in intrastate air transportation without having first been granted a certificate of public convenience and necessity by the Commission; and

WHEREAS, the general powers of the Commission include regulating air carriers through its investigative powers, establishing reasonable classifications of air carriers, and adopting rules to regulate those classes; and

WHEREAS, Act 332 recognized, however, that the federal Airline Deregulation Act of 1978 expressly preempts the states from enacting or enforcing any law, rule, or regulation "relating to rates, routes, or services of any air carrier having federal operating authority;" and

WHEREAS, furthermore, federal statutes and case law make clear that air travel between the Hawaiian islands is considered interstate or overseas air transportation; and

WHEREAS, Act 332 therefore made the establishment of an Air Carrier Commission contingent upon enactment of federal legislation permitting such a regulatory scheme; and

WHEREAS, the Legislature finds that the proposed merger between Hawaiian Airlines, Inc. and Aloha Airlines, Inc. will result in one air carrier dominating intrastate air traffic; and

WHEREAS, the Legislature is concerned that the loss of competition due to the merger could have a severely negative impact on residents of and visitors to Hawaii due to: an increase in air passenger ticket and cargo fares; a reduction in the frequency or availability of certain routes; and an increase in unemployment and its attendant costs to society, as the work force of the two airlines are consolidated; and

WHEREAS, in particular, the Legislature is concerned that the merger could negatively affect the struggling economies of the neighbor islands, by reducing visitor travel to the neighbor islands, as a result of increased ticket fares and reduced flights, and negatively affect commerce by increasing the cost of goods air shipped by neighbor island producers, as well as those shipped to neighbor island consumers; and

WHEREAS, given the potential negative impacts of the proposed airline merger on consumers, the State of Hawaii should have the authority to regulate intrastate air travel to protect the public's interests; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the United States Congress is requested to enact enabling legislation that would permit state regulation of interisland air carriers by an Air Carrier Commission pursuant to Act 332, Session Laws of Hawaii 1993; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and members of Hawaii's congressional delegation.

 

 

 

OFFERED BY:

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Report Title:

Enabling legis. to permit state reg. of interisland air carriers