STAND. COM. REP. NO. 1762

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.C.R. No. 220
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred H.C.R. No. 220, H.D. 1, entitled:

     "HOUSE CONCURRENT RESOLUTION URGING THE AIRPORT DIVISION OF
     THE DEPARTMENT OF TRANSPORTATION AND THE DEPARTMENT OF
     BUDGET AND FINANCE TO WORK CLOSELY WITH AIR CARRIERS SERVING
     HAWAII TO DEVELOP STRATEGIES TO EFFECTIVELY REDUCE AIRPORT
     SYSTEM COSTS TO ACHIEVE LOW AND STABLE AIRPORT LANDING FEES,
     RATES, AND CHARGES,"

begs leave to report as follows:

     The purpose of this measure is to request the Department of
Transportation, Airports Division, and the Department of Budget
and Finance to work closely with the air carrier industry to
develop strategies to effectively reduce airport system costs,
and report their findings and recommendations to the Legislature
no later than twenty days prior to the convening of the Regular
Session of 2000.

     Testimony in support of this measure was received from the
Department of Transportation, the Department of Budget and
Finance, and the Airlines Committee of Hawaii, representing
twenty-two air carriers serving the State of Hawaii. 

     Your Committee is aware that air transportation for our
island State is essential for the travels of residents, for the
import and export of goods, and for the arrivals and departures

 
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                                   STAND. COM. REP. NO. 1762
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of millions of vacationing tourists, who serve as the backbone of
our economy.  

     Your Committee finds that low and stable landing fees and
other charges encourage present air carriers to add more flights,
and new carriers to provide air service for our State.  Your
Committee further finds that the State and the air carriers must
work closely together in establishing the amounts of landing fees
and other charges for their mutual benefit.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for the purpose of style. 

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee concurs with the intent
and purpose of H.C.R. No. 220, H.D. 1, as amended herein, and
recommends its adoption in the form attached hereto as H.C.R.
No. 220, H.D. 1, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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