Posted on: Tuesday, July 23, 2002

Local airlines to seek exemption

Gov. Ben Cayetano yesterday issued a formal declaration that will allow Hawaiian and Aloha airlines to submit a joint application for a limited antitrust exemption to the federal government.

Cayetano said a limited cooperation agreement between the two airlines is necessary. They must now submit their application to U.S. Transportation Secretary Norman Mineta for review.

Federal antitrust laws normally would prohibit the competitors from cooperating. But, as part of an aviation security measure passed after the Sept. 11 attacks, Congress created a limited antitrust exemption that applies to certain airlines.

Cayetano's declaration said the proposed agreement is limited to coordinating airline capacity.