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The Honolulu Advertiser
Posted on: Sunday, January 20, 2002

ISLAND VOICES
Merger will help Hawai'i stay strong

By Sen. Daniel Inouye

Over the years, our Island carriers have experienced good and bad times, and even have required the filing of bankruptcy protection. Each has prospered, struggled and survived.

Hawai'i needs a single flagship carrier, Sen. Dan Inouye said.

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Unfortunately, the economic realities of late have worked against Aloha and Hawaiian with the final blow coming with the aftermath of the Sept. 11 attacks. Through it all, I have encouraged both carriers to keep their eye on the primary goal — to ensure reliable and affordable interisland air transportation for our residents and visitors. To achieve this goal, Hawai'i needs a stable, healthy flagship carrier to move its residents between islands, and capitalize on lucrative Mainland markets that would in turn help support the interisland operation.

There are many hurdles to overcome at the state and federal levels. At home, the state must have assurances of sufficiency of schedules and affordability of ticket prices. Union seniority issues and pay equity must be reconciled.

At the federal level, the Departments of Justice and Transportation must sanction the transaction and have a level of comfort that a Hawai'i flagship carrier is the best means of ensuring an interisland transportation system, as well as greater competition for routes between Hawai'i and the Mainland.

I know that this merger announcement has elicited many emotions among some of Hawai'i's traveling public ranging from shock and sadness to anger and frustration. These are all valid, especially when change of this magnitude occurs.

However, I believe that one financially healthy Hawai'i carrier offers much more stability for the future than two weakened and struggling ones. It is also our best hope to keep the controlling ownership and management in Hawai'i, rather than Atlanta, Dallas or Chicago. If the latter should occur, we will no longer have the luxury of arguing for continued service to the smaller, less profitable destinations.

It will simply become a matter of dollars and cents, rather than a sense of community obligation. A new entrant may always enter the market. It may do so today or after the merger is completed.

Change is never easy. However, I believe we must embrace this change as an opportunity, rather than turn a blind eye to the carriers' financial troubles and simply hope that the problem will go away. I commend Aloha and Hawaiian for their courage to face the realities, and their commitment to Hawai'i to make the tough decision, after years of vigorous competition, to join forces to ensure a strong, stable flagship carrier for Hawai'i's future.

I hope you will give it a chance.

Daniel Inouye is the senior U.S. senator representing Hawai'i.