THE SENATE

S.C.R. NO.

13

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

CONCERNING THE PROPOSED MERGER OF HAWAIIAN AND ALOHA AIRLINES.

 

WHEREAS, longtime rivals Hawaiian and Aloha airlines recently announced a $200 million plan to merge into one company to be known as Aloha Holdings, Inc., ending decades of rivalry between Hawaii's two major airlines; and

WHEREAS, the proposed merger between the two carriers will leave Hawaii with a single interisland carrier for the first time in more than 50 years, creating a monopoly in the state of Hawaii, which will effectively drive up costs for interisland airline tickets for Hawaii's consumers as well as erode the quality of service; and

WHEREAS, according to industry observers, combining the two airline carriers would rank it tenth in size in the nation and would monopolize 90 percent of the local market; and

WHEREAS, the results of the proposed merger could be detrimental for those who are employed by Hawaiian or Aloha airlines, as the new company looks to streamline its operations, eliminate duplicative functions, and downsize its existing aircraft fleet, which likely will result in layoffs; and

WHEREAS, the proposed merger will also nearly monopolize freight operations in the state of Hawaii, resulting in higher rates for the daily delivery of essential goods and products to neighbor island and Honolulu consumers such as mail, fresh flowers, fish, newspapers, construction materials, and electronics and adversely affect small businesses in the state of Hawaii; and

WHEREAS, the American Society of Travel Agents has voiced its opposition to the proposed merger, calling it "anti-competitive" and stating the remoteness of Hawaii's geographic location makes it unlikely that new airline carriers will enter the market, resulting in fewer choices for consumers, higher fares, and a decline in the current level of service; 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 Hawaii State Legislature respectfully requests that the state Attorney General, the United States Department of Justice, and Hawaii's congressional delegation not support the proposed merger of Hawaiian and Aloha airlines; and

BE IT FURTHER RESOLVED that the state attorney general is requested to report findings and recommendations to the Legislature twenty days before the convening of the regular session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the state Attorney General, the head of the anti-trust division of the United States Department of Justice and to members of Hawaii's congressional delegation.

 

OFFERED BY:

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Report Title:

Interisland carrier monopoly; regarding the proposed merger of Hawaiian and Aloha airlines.