Honolulu Star-Bulletin Local News
Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, August 27, 1996


Interisland air fares rise
as tax takes effect

Interisland air fares went up 10 percent today as a federal tax of that level kicked into effect after being suspended since the end of last year.

On Aloha Airlines and Hawaiian Airlines, the basic Hawaii-

resident fare went to $45.10 each way, from $41. On smaller Mahalo Air's flights, the Hawaii-resident fare went to $39.60, from $36.

Aloha and Hawaiian both ran tax-related coupon sales, allowing buyers to travel for $42 through Dec. 31 or $45 through June 30. The sales ended yesterday.

The airlines had rolled back their ticket prices to reflect the absence of the tax, which Congress had failed to restore. President Clinton signed a bill last week that reinstated the tax, effective today.



Aloha Tower developer
misses payment to state

The developer of Aloha Tower Marketplace has missed its deadline to pay the state, and now the mortgage lender is expected to pay.

The developer, Aloha Tower Associates, owes nearly $593,000 in back rent and other expenses.

Ronald Hirono, executive director of the state board overseeing the waterfront development, said he now expects the mortgage lender Mitsui Trust and Banking Company to foot the bill.

The state had notified Aloha Tower Associates on Aug. 15 that it needed to pay the money by yesterday's deadline.

Mitsui Trust had loaned the developer $60 million to build the marketplace and is now in the process of selling its loan because it said the developer failed to make loan payments.



For more local, national and international business news,
see the Hawaii Inc. section in today's Honolulu Star-Bulletin.




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