HOUSE OF REPRESENTATIVES

H.R. NO.

21

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

 
   


HOUSE RESOLUTION

 

EXPRESSING this body's CONCERN OVER THE PROPOSED CONSOLIDATION OF THE HAWAII INTERISLAND AIR TRANSPORTATION MARKET BY MERGER OF HAWAIIAN AIRLINES AND ALOHA AIRLINES INTO A SINGLE PRINCIPAL CARRIER, AND REQUESTING THE ATTORNEY GENERAL AND THE UNITED STATES DEPARTMENT OF JUSTICE TO DETERMINE WHETHER REASONABLE ALTERNATIVEs TO THE PROPOSED MERGER EXIST TO PRESERVE A MULTICARRIER MARKET AND, IF SO, TO DISAPPROVE THE MERGER.

WHEREAS, Hawaii's residents and visitors depend almost exclusively on air travel for their interisland passenger transportation needs; and

WHEREAS, Hawaii's residents, visitors, and businesses are also highly dependent on the availability of frequent, reliable, and economical interisland air cargo transportation; and

WHEREAS, this body finds that the maintenance of a safe, reliable, stable, and cost-effective interisland air transport system for Hawaii is best accomplished through a competitive market environment; and

WHEREAS, for several decades, Hawaii's interisland air transport system has functioned in a competitive market environment and has served Hawaii well; and

WHEREAS, the merger of Hawaiian Airlines, Inc. and Aloha Airlines, Inc. would result in the consolidation of virtually all of Hawaii's interisland air passenger and cargo business to one carrier; and

WHEREAS, the proposed merger and its potential effect on the residents and the economy of Hawaii, particularly those of the Neighbor Islands, is of great concern to many of Hawaii's residents and to this body; and

WHEREAS, proponents of the merger have maintained that the merged airline would enhance the interisland air transport market and that the merger represents the best alternative to realize this body's goal of a continued safe, reliable, stable, and cost-effective interisland air transport system; and

WHEREAS, opponents of the merger have maintained that reasonable alternatives to the proposed merger exist, such as the temporary anti-trust exemption to coordinate flight schedules, security arrangements, and airline operations and that the Legislature should oppose creation of a monopoly in interisland air transport; and

WHEREAS, this body recognizes that the proposed merger is subject to scrutiny by the Attorney General and the United States Department of Justice for compliance with state and federal antitrust laws; and

WHEREAS, this body understands that the sentiment of the Hawaii community with respect to the proposed merger is a significant factor in the decisions of federal and state antitrust regulators on whether to approve, approve with conditions, or disapprove the proposed merger; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, that this body formally expresses its concern over the proposed consolidation of the Hawaii interisland air transport market by the merger of Hawaiian Airlines and Aloha Airlines into a single principal carrier; and

BE IT FURTHER RESOLVED that this body does not generally view the creation of a monopoly in the interisland air transport system by merger as beneficial to the health and well-being of Hawaii's people unless no reasonable alternatives to the merger exist; and

BE IT FURTHER RESOLVED that the Attorney General and the United States Department of Justice, as part of their evaluation of the proposed merger, are requested to determine whether reasonable alternatives to the proposed merger exist by which a competitive multicarrier interisland air transport market may be maintained, and if reasonable alternatives do exist, to disapprove the proposed merger; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the members of Hawaii's Congressional delegation, the Governor of Hawaii, United States Department of Justice, United States Secretary of Transportation, Chairperson of the Federal Trade Commission, Attorney General, Chief Executive Officer of Aloha Airgroup, Inc., and the Chief Executive Officer of Hawaiian Airlines, Inc.

 

 

 

 

 

Report Title:

Proposed Merger Between Hawaiian Airlines and Aloha Airlines.