Merger opponents mobilize

By Susan Hooper
Advertiser Staff Writer

Opposition to the planned merger of Hawaiian and Aloha airlines continued to grow yesterday, with state Sen. Ron Menor saying he expects to introduce a resolution today opposing the deal and calling for a public hearing.

Testimony from the upcoming hearing likely would be forwarded to federal and state attorneys, Menor said.

Government approval of the merger rests with the U.S. Department of Justice and the state attorney general's office, both of which are reviewing the deal for possible antitrust violations. The Airline Deregulation Act of 1978 virtually eliminated any role for state legislatures in opposing an airline merger, beyond resolutions and informational hearings or briefings.

Menor, D-18th (Waipi'o Gentry, Wahiawa), said the carriers have not made a "persuasive and effective case" for the merger. In addition, he said, senators still have questions about whether the merger, which will create the only major interisland airline in the state, will harm consumers.

Menor, chairman of the Senate Commerce, Consumer Protection and Housing Committee, expects the public hearing on the merger to be held within the next few weeks. The hearing would give airline executives another opportunity to make their case for the merger and would allow for comments from "a broad cross section of the public," he said.

Sen. Cal Kawamoto, D-19th (Waipahu, Pearl City), who heads the Senate Transportation, Military Affairs and Government Operations Committee, is expected to co-sponsor the anti-merger resolution.

The public hearing likely would be held by Menor's and Kawamoto's committees and by the Senate Committee on Tourism and Intergovernmental Affairs, Menor said.

Last week the three Senate committees held a four-hour informational briefing on the merger.

Also last week, the Senate's three Republicans introduced two resolutions opposing the merger and sent a letter to the U.S. Department of Justice, asking it to block the merger.