Hawai'i's airlines seek antitrust exemption

By Michele Kayal
Advertiser Staff Writer

Hawai'i's airlines are seeking an exemption from anti-trust laws in an effort to help them maintain service in the Islands and buoy them through what are expected to be extremely hard times for the entire U.S. airline industry, congressional representatives said yesterday.

Hawaiian Airlines and Aloha Airlines are hoping to be allowed to cooperate in their operations, said Jennifer Goto Sabas, chief of staff for Sen. Daniel Inouye, D-Hawai'i, though in what specific areas was unclear yesterday.

Collaborating on scheduling, for instance, could help maintain a consistent number of flights for residents and visitors without becoming a great a drain on the individual resources of each airline.

"With the dramatic drop in their ridership, both of them are coming upon some difficult times," Goto Sabas said. "The provision would allow them to have dialogue with each other and to maintain the schedule."

Under U.S. law, airlines are prohibited from communicating with each other on schedules, pricing or any other competitive issues. Any exemption would likely be temporary.

Hawai'i's airlines already have felt the bite of last week's terrorist attacks on the United States, losing as much as 30 percent of the traffic on some routes. Aloha Airlines announced a 26 percent reduction in its flight schedule, effective Monday, and expects to cut back on employees later this week. Hawaiian Airlines also is expected to announce similar moves, possibly as early as today, said company spokesman Keoni Wagner.

Hawaiian Airlines' chief executive officer, Paul Casey, could not be reached for comment. Aloha's chief executive officer, Glenn Zander, also was unavailable.

Goto Sabas said the Senate will begin hearings tomorrow on a bill expected to address financial assistance for American carriers as well as the antitrust exemptions for Hawaiian and Aloha, and possibly for all U.S. airlines. The goal is to get the bill to the Senate floor for a vote next week, Goto Sabas said.

A similar bill is being put together in the House, said Michael Slackman, spokesman for Rep. Neil Abercrombie, D-Hawai'i, and will also try to address the needs of Hawaiian and Aloha.

"We have been in touch with Aloha and Hawaiian and they have communicated their concerns," Slackman said. "This is not just an issue for the airlines in Hawai'i. It's something the big boys all over the country are concerned about, because they have visions of three-quarter empty planes sharing the same routes at the same times."

Hearings on those issues begin today, he said, and the hope is to bring the bill to a vote by the end of the week.

The airlines also could seek assistance from the state, Goto Sabas said. Casey and Zander met with Gov. Ben Cayetano on Monday.