The interisland carrier today announced that it was restructuring its fare prices for 1997. The move was prompted largely by the Dec. 31 expiration of a 10 percent federal aviation excise tax on airline tickets.

Aloha's affiliated company Island Air, which operates flights to Molokai, Lanai and Hana and West Maui, also has reduced its fares substantially.

Competitors Hawaiian Airlines and Mahalo Air have made no decision on matching the new fares this morning.

"Hawaiian will always be competitive," said company spokesman Keoni Wagner.

Mahalo earlier lowered ticket prices for its neighbor island flights by 10 percent starting Jan. 1, due to the expiration of the federal tax, said Doug Caldwell, Mahalo's vice president of marketing.

In August, all three local airlines increased fares after President Clinton signed a bill reinstating the tax, which had lapsed in January during the heated budget battle in Congress.

In October, the local carriers also raised some ticket prices due to soaring jet fuel prices.

Under Aloha's new plan, one-way, unrestricted kamaaina fares are down 31 percent to $55 from the current $80.

The popular "T" fare for residents, which is available for limited seating on all flights, is 22 percent lower at $45 each way from the current $58.

Monthly commuter passes, for unlimited use, will drop 1.1 percent to $869 from $879.

Aloha said it's dropping its first-class, one-way fare 32 percent to $79 from the current $116; the new coach fare, used largely by tourists, is being cut 21.5 percent to $69 from $88.

At Island Air, one-way fares for local residents have been cut 24.6 percent to $55 from the current $73. The company's special $50, limited seating fares is being cut 10 percent to $45, while the commuter airline's monthly commuter pass drops to $869 from $879.

Tickets can be purchased starting today and are good for travel after Jan. 1.

Aloha, which operates 187 daily flights statewide, said the new fares and coupons will be good until the federal tax or other federal fees are reimposed.

All ticket purchases during the period of the lapsed tax will not be subject to future fare increases.

"We want to stimulate what is traditionally a slow time of the year for travel," said Glenn Zander, Aloha's president and chief executive.