Resolution on interisle flights in works

By Kelly Yamanouchi
Advertiser Staff Writer

Problems with interisland flight schedules continue to trouble residents, and legislators want Hawai'i's congressmen to look into expanding the antitrust agreement that allows the state's two major carriers to coordinate seat capacity.

But the state attorney general warned that expanding the agreement could lead to violations of the antitrust law.

Aloha Airlines chief executive Glenn Zander also said he had doubts about whether an expansion of the agreement would win approval.

"To re-create the exemption would actually require new federal legislation," he said. "This is likely impossible."

Zander said further that it is unclear whether an expansion would help address the problem of insufficient flights between islands.

Zander acknowledged that the interisland flight market in December, the first month of the reduced flight schedules, "was in shambles, and I've certainly apologized for that." But he said it has improved since then.

Keoni Wagner, Hawaiian Airlines spokesman, said the carrier supports an extension of the agreement and is "open to any and all ideas."

The Senate Transportation Committee amended a proposed resolution yesterday originally intended to seek the congressional delegation's help to extend the agreement that now allows Hawaiian and Aloha to coordinate capacity on certain interisland routes and to coordinate schedules as well.

"The way it is now, I would argue that the airline industry went to hell when it was deregulated," said Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui).

State Attorney General Mark Bennett said in testimony, however, that expanding the agreement to allow the carriers to coordinate schedules could allow them to skirt antitrust rules. He also noted that Gov. Linda Lingle has not yet decided whether to support an extension of the agreement.

The exemption granted last September to Hawaiian and Aloha allows the carriers to coordinate capacity on routes between Honolulu and Lihu'e, Kahului, Kona and Hilo through Oct. 1, 2003.

The Senate committee accepted the attorney general's cautionary advice against too broad an expansion. Specific wording for the resolution will be submitted in the next few days.

The resolution could end up stating that the governor must initiate a request for an extension or an expansion. It could also limit discussion under a broader agreement to operating flights for longer periods each day, starting flights earlier and ending them later.

Bennett said he had doubts that a system "where carriers say, 'We'll take Hilo, you take Kahului,' " could ever be in the interest of consumers.

"There clearly is a problem," Bennett said, noting that he recently had trouble getting a representative on a flight from a Neighbor Island for a meeting.

"I don't know what the answer is.... I don't know what I can tell you is the solution to all of these issues to get the Neighbor Islands the service that they need," he said.

Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.