Pacific Wings granted extension

By Frank Cho
Advertiser Staff Writer

The U.S. Department of Transportation has granted a request by interisland air carrier Pacific Wings to extend the period the public can comment on an application by Aloha and Hawaiian airlines for an antitrust exemption.

The decision, which was filed late Tuesday afternoon, vacated yesterday's deadline and gave Pacific Wings and others until Tuesday to file their comments.

Pacific Wings argued earlier this month that the deadline for the "answer period" should be extended from yesterday until Sept. 10 because it needs more time to study the airlines' joint request and assess the potential effects on its own operations. The DOT agreed in part, extending the deadline only to Sept. 3.

"This decision shows that the Department of Transportation in Washington does not share (Aloha and Hawaiian's) view that Pacific Wings is an insignificant competitor," said Greg Kahlstorf, president of Kahului, Maui-based Pacific Wings Airlines Ltd.

Federal transportation officials earlier this month accepted an application from Aloha and Hawaiian, the state's two largest interisland carriers, that would allow the them to coordinate an effort to reduce, for a limited time, excess air capacity in the market. The airlines said they hope the move will allow them to reduce expenses. How much it would save is not clear yet.

Both airlines have been losing millions of dollars since Sept. 11 and say they need the antitrust exemption to help them stem the losses.

A spokesman for Aloha Airlines declined to comment on the extension. A Hawaiian official said yesterday that the DOT's decision doesn't change anything.

"We think it is in everyone's best interest that this process move forward, and soon, but we don't think this will have any material effect on the outcome," said Keoni Wagner, a spokesman for Hawaiian.

Officials for both Hawaiian and Aloha earlier this month opposed the extension, saying at the time that Pacific Wings had been given adequate time to monitor the carriers' request and file a comment.

Federal officials said they plan to issue a decision on the exemption by the federally mandated Oct. 1 deadline.