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HAWAII
HTA board wants secret evaluation process

The board of the Hawaii Tourism Authority is exploiting state law to allow its members to conduct a self-evaluation in secret.

Although the results of the evaluation will be made public by the authority, a state agency, the interviews will be done in private. At an HTA meeting Thursday, all board members agreed not to use written interviews, because the notes would become a public record.

The authority received legal advice on the matter from its attorney, Linden Joesting, a deputy attorney general.

Mike McCartney, chairman of the authority, said the intent of having secret interviews would be to promote honest discussion. If board members knew their comments would be public, their remarks would likely be self-congratulatory, and not critical, he said.

The tourism authority was slammed by a state audit last year and has been working to improve its accountability under a new chief executive, Rex Johnson. Also, Gov. Linda Lingle has recently named several new board members, including John Toner, Kyoko Kimura and Marsha Wienert, who is also becoming Lingle's tourism liaison.

The authority has a $61 million budget to manage and market Hawaii's No. 1 industry.

Hawaiian gets lease extension

Hawaiian Airlines said yesterday it has reached agreement with International Lease Finance Corp. on a second 30-day extension in which the aircraft lessor cannot take any action to repossess the four Boeing 767s currently leased by the airline.

The extension, which falls under a section of the U.S. Bankruptcy Code, previously was scheduled to lapse June 21. It has now been extended to July 21. Hawaiian and ILFC announced in May they had reached a restructured agreement but that pact still needs to be documented, as well as approved by Bankruptcy Court Judge Robert Faris.

Hawaiian, which last month signed a restructured agreement with lessor Ansett Worldwide, has yet to reach an agreement with Boeing Capital Corp., which leases Hawaiian 16 of its 27 planes. Boeing Capital and Hawaiian previously agreed to a June 27 extension under which no planes can be pulled back. That date has yet to be extended.

The airline, which currently is operating under a trustee, former Liberty House President and Chief Executive Officer John Monahan, filed for Chapter 11 reorganization bankruptcy on March 21.

HVCB plans mainland blitz

A Hawaii Visitors & Convention Bureau marketing team plans to meet with 285 national and regional media publications in 11 major U.S. cities in a blitz that will run from Monday through Friday.

The campaign is aimed at bolstering the relatively slow fall 2003 and spring 2004 tourism seasons.

"Hawaii is a 'hot' destination and offers all the qualities that travelers are looking for in today's world. It's exotic yet American, and remote yet considered secure," said Tony Vericella, president and chief executive of the nonprofit HVCB.

Local economists talk deflation

The Hawaii Economic Association tackles deflation at its monthly meeting Tuesday.

There will be an informal panel discussion on the topic, as well as interpretation of recent Federal Reserve statements and what they might mean for financial markets and monetary policy-making at 11:45 at the Plaza Club.

Panelists include Byron Gangnes, University of Hawaii associate professor of economics; Kevin Haseyama, vice president and financial risk manager for American Savings Bank; and Paul Brewbaker, senior vice president and chief economist of Bank of Hawaii.

The cost to attend is $23 for members and $28 for guests. For reservations, call Myra Brandt at 735-7500 or e-mail her at myra@brandts.com.