SIDA shutdown adds to airport's concession woes

By Sean Hao
Advertiser Staff Writer

Wayne Greenleaf, an operations employee with TheCab, at the former SIDA airport office on Kalewa Street, now operated by TheCab. SIDA shut its doors and laid off its drivers Saturday. Deborah Booker • The Honolulu Advertiser

Phone calls to the 40-year-old State Independent Drivers Association offices went unanswered yesterday, and company officials were unavailable for comment.

However, TheCab President Howard Higa confirmed that SIDA had abruptly closed its doors, laying off about 100 cab drivers.

"I think it's a sad story. In the end, SIDA management didn't give adequate advanced warning," he said. "I thought there could have been more communication."

With its closing, SIDA leaves unpaid some $783,572 owed to the state in back rent and interest payments under a contract, terminated in January, to run taxis at Honolulu International Airport.

Department of Transportation spokesman Scott Ishikawa said the state hopes to recoup at least $54,000 of that under a security deposit made by SIDA.

Any remaining debt is a further blow to the airport, which has seen at least one other large concessionaire fall behind on state payments. Last month, duty-free retailer DFS Group agreed to pay the state $25 million to cover some of the $49 million owed in delinquent rent.

Like those of DFS, SIDA's problems can be traced in part to a sharp drop in tourism after the Sept. 11 attacks.

In January, the company owed the state $670,000 under terms of a seven-year contract that expired that month. At that time, Edwin Matsumoto, SIDA's chief executive officer, blamed the decline in visitors for the company's inability to make timely payments to the state.

The shortfall also prevented SIDA from bidding on the new airport contract. The contract was awarded in February on an interim basis to TheCab.

SIDA's airport office at 439 Kalewa St. was included in the deal. However, Higa said he had allowed SIDA to continue to operate from there until it found a new office.

When SIDA closed on Saturday, TheCab took over SIDA's offices and picked up about 80 former SIDA drivers, Higa said. TheCab offered many of them a break on stall rent at the airport for the current month, he said.

Among the SIDA drivers affected is 28-year cab driver Neo Teocson. He said he was among about 100 taxi operators notified late Saturday that the company was shutting its doors. Teocson, who considers his $3,000 in stock in the privately owned company now worthless, said he doesn't expect the company to reopen.

"I think that SIDA is finished," he said. "It's kaput."

Before SIDA's shutdown, Higa said he had discussed purchasing the company's assets with Matsumoto. However, those talks were abandoned after the discovery of the depth of SIDA's debts, he said.

In addition to being contacted by SIDA drivers, Higa said he has heard from several local travel agencies and tour operators that purchased thousands of dollars of pre-paid taxi trip coupons from SIDA that are no longer valid.

With the addition of the SIDA drivers, TheCab now has more than 800 cabs, making it the largest taxi company in the state, Higa said. There are 1,367 registered taxi cabs in Honolulu, according to the city's Division of Motor Vehicle Licensing and Permits.

Aloha State Cab Inc. said yesterday that former SIDA drivers were welcome to apply for work with the cab company.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.