Editorials
Friday, September 24, 1999

Hawaiian Airlines’
new interisland fleet

The issue: Hawaiian Airlines announced it will purchase 13 new Boeing 717-200 planes, replacing its entire interisland fleet.
Our view: The announcement is a sign of health in an industry that is important to the state's economy.

HAWAIIAN Airlines, which has had a troubled financial history, is striding boldly into the next millennium with its announcement that it will spend $430 million on 13 new Boeing 717-200 planes, replacing its entire interisland fleet.

John W. Adams, chairman of Hawaiian's board of directors, said the purchase caps three years of growth at the airline and reflects its strong balance sheet. It's a healthy sign for Hawaii's economy, which could use some encouragement.

Paul J. Casey, Hawaiian's president and chief executive officer, said the 717s are 25 percent more fuel-efficient and cost less to maintain than the company's fleet of DC-9s, which is more than 20 years old.

They are designed for short-haul, high-frequency service like Hawaiian's interisland flights. Casey expects to save $200 million in operating expenses over the first 10 years of operation.

In another encouraging move, Hawaiian's interisland competitor, Aloha Airlines, recently announced plans to enter the mainland-Hawaii market by opening service to Oakland, Calif. Hawaiian also has flights to the mainland and the South Pacific.

Hawaii's two main interisland airlines play important roles in the state's economy. The fact that Hawaiian has embarked on this major aircraft purchase is reassuring.

Clinton’s
tax-cut veto

The issue: President Clinton has vetoed the Republican tax-cut bill.
Our view: The bill is based on a projected federal budget surplus that may never materialize.

To the surprise of no one, President Clinton has vetoed the Republican-passed $792 billion tax cut bill, saying it would "turn us back to the failed policies of the past" at a time when the nation is enjoying economic prosperity."

He called on Congress to enact "tax relief we can afford" by year's end, but the likelihood is that tax-cut legislation is dead for this year. Tax cuts are probably destined to become an election issue, with Democrats and Republicans blaming each other for this year's failure to pass anything.

House Speaker Dennis Hastert said lawmakers are open to compromise, "but we will not work with the president to raise taxes, raid the Social Security trust fund or pile on more debt on the American people."

The president has managed to be on both sides of this issue. He has his own tax-cut proposal, but at the more modest $300 billion level, which he says is all the nation can afford while protecting Social Security and Medicare at the same time -- and leaving room for his own programs.

Both parties are banking on projections of a $2.9 trillion surplus over the next decade to finance their tax cuts and other proposals. Unfortunately, this may turn out to be a pipe dream.

The projected surplus is based on a deal made by the Clinton White House and congressional Republicans in the so-called Balanced Budget Act of 1997. The bargain was that Congress would steadily reduce discretionary spending starting in 1999 until the budget was balanced in 2002.

This year the first installment on the spending cuts came due, and Congress isn't meeting it.

Hastert, in an attempt to meet the spending caps, even decided to fund the 2000 census as an "emergency." Rather than tighten their belts, the Republicans have gone on a spending spree. The way they're going, there will be no surplus.

That won't stop the politicians from posturing. They want to have their cake and eat it too. One day it will all catch up with them -- and us.

Ford Island plans

The issue: Congress has approved plans for the development of Ford Island in Pearl Harbor.
Our view: Ford Island is assuming new roles.

THE Navy has ambitious plans for the development of Ford Island in Pearl Harbor, and now Congress has given its approval. Once the airport for the naval base, Ford Island is taking on new roles, aided by the recent completion of the bridge linking it with the mainland of Oahu.

The legislation allows private developers to finance and build housing for 700 military families and 1,000 single personnel. The Navy would rent the units from the developers.

The project is expected to generate more than $500 million in construction and spin-off activity over 12 years. Also planned are shops, a Navy museum and outdoor recreational facilities.

Approval came Wednesday as the Senate passed a $289 billion defense authorization bill. The House acted last week. President Clinton is expected to sign the bill soon.

Senator Inouye, who has worked with Rep. Neil Abercrombie to move the project through Congress, called the action "the first important step in carrying out the plan."

In a separate defense spending bill, the Senate approved $8 million for an environmental and economic analysis of the Ford Island plan, but more approvals are needed in the course of the appropriations process.

With the retired battleship Missouri, the Arizona Memorial and the museum that is being planned, Ford Island is becoming the main repository of Pearl Harbor's history.

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Published by Liberty Newspapers Limited Partnership

Rupert E. Phillips, CEO

John M. Flanagan, Editor & Publisher

David Shapiro, Managing Editor

Diane Yukihiro Chang, Senior Editor & Editorial Page Editor

Frank Bridgewater & Michael Rovner, Assistant Managing Editors

A.A. Smyser, Contributing Editor