[ OUR OPINION ]
THE anti-trust exemption granted to Hawaii's two interisland airlines delivers them a significant tool in their efforts toward financial stability. The venture can work well for the companies and for consumers, who are almost completely dependent on the airlines for travel and cargo movement between islands. Airline exemption
can help consumers, too
THE ISSUE Hawaiian and Aloha are given a waiver from anti-trust laws that will let them coordinate capacity levels on key routes.
There appear to be enough safeguards in the U.S. Department of Transportation's guidelines for the exemption, which will allow Hawaiian and Aloha airlines to coordinate the number of seats they provide for key interisland routes. The airlines will not be allowed to arrange flight schedules or fares, and have pledged that the exemption will not result in eliminating service to their five largest markets -- Lihue, Kona, Hilo, Kahului and Honolulu.
Further, the waiver requires the airlines to submit monthly reports detailing traffic, average fares, loads and yields. The reports to the DOT also will be monitored by the governor -- who has the option to withdraw support for the exemption -- to assure the airlines are not unreasonably restricting travel and are maintaining the best interests of Hawaii consumers. The governor says when appropriate he will make public as much of the data in the reports as possible to satisfy those concerns.
The plan would permit each airline to calculate separately the number of seats it will need in a specific month, then pool their totals. From that amount, each company will take half and distribute the capacities on particular routes. If one airline sells more than 50 percent of the total number of seats, it will compensate the other for them. As the airlines now operate, they often have flights on the same routes departing within minutes of each other with empty seats on both aircraft. The companies say the exemption will help them save on fuel costs, landing fees and maintenance expenses.
The exemption likely will result in fewer flights to some airports and some restructuring of ticket prices. Both companies have said they are struggling financially with the unprofitable interisland market and had attempted a merger, which was called off earlier this year. The waiver may help them streamline services and determine how to make reasonable profits to keep both in business. The federal and state government should keep close watch of the situation with the public's interest in the forefront. If the companies emerge from the year-long exemption period more financially secure, consumers eventually will benefit.
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