Airline merger draws fire at Maui hearing

By Timothy Hurley
Advertiser Maui County Bureau

WAILUKU, Maui — The proposed merger of Aloha and Hawaiian airlines last night took a beating at a state Senate hearing attended by about 50 people, many of them airline employees wearing anti-merger buttons and T-shirts.

Sens. Ron Menor, D-18th (Mililani, Waipahu, Crestview), and Cal Kawamoto, D-19th (Waipahu, Pearl City), presided over the third of four Neighbor Island hearings as they prepare for Senate consideration of a resolution they authored describing the merger as "anti-competitive'' and "not in the best interest of the public.''

The proposed merger would take effect by April 18.

Guy Lawrence, a 21-year Hawaiian Airlines employee, was among those at the hearing predicting disaster if regulators approve the merger. He said the action would lead to higher fares, fewer choices, layoffs and disruptive labor disputes.

He urged regulators to make a judgment independent of the analysis and promises offered by airline leaders.

"They stand to make too many millions off of this,'' he said.

Sandy Baz, a Maui Economic Opportunity Inc. official, said his organization and other Maui nonprofits are worried about how the merger will affect their ability to serve a constituency that is living on three different islands. He said MEO's travel costs could increase by more than $100,000 a year.

Baz said the experiences of such mergers on the Mainland have shown that ticket prices go up and service goes down.

Not everyone spoke against the merger. Aloha pilot Wendell Payne said he wholeheartedly supports the plan because the market wasn't supporting both airlines.

"From where I see it, one of these airlines was going to go out of business anyway,'' he said. "And if one of them goes out of business, 3,000 people will be on the street, not just a few.''

Payne said the state may have to suffer a bit, but the new airline will emerge with the power to boost Hawai'i's economy by bringing in more money and high-paying jobs.

Lynne Woods, executive director of the Maui Chamber of Commerce, said her organization has taken no position because there isn't enough information to make an educated decision.

While some in the visitor and farm industries are hopeful the new airline will generate more Mainland flights, others are worried about the potential negative effects of a monopoly stranglehold on the intra-island market, she said.

The next hearing will be tomorrow on Kaua'i.