Monday, May 12, 2008
Hawaii Wants Re-Regulation in Inter-Island Market
The Hawaiian legislature passed the Hawaii Interisland Airlines Regulation bill in an attempt to prevent another airline to go under because of price wars as Aloha cited in its Chapter 7 bankruptcy filing.
"By regulating the rates we can ensure that they have a reasonable rate of return and that the people of the state of Hawaii are serviced," Rep Bob Herkes, (D) Puna-Kona, who introduced the bill, told a local television station. But detractors noted that it would likely mean higher fares. The legislation calls for a newly created commission that would certify carriers to offer service in the markets. Hawaiian Airlines testified against the measure saying it is not the time for adding costs to already beleaguered airlines.