Travel Weekly's Hawaii E-Letter: January 14, 2002 January 11, 2002 Share 1 -- TURNWORKS, the company attempting to merge Hawaiian and Aloha airlines, is promising it will cap interisland fares at $78 each way for two years with subsequent increases over then next three years pegged to the consumer price index. Turnworks revealed the plan in a proposal submitted to the state attorney general's office, which will decide if the merger can pass an anti-trust test. A deputy attorney general said the office was no where near the point of looking at fare structures yet and could not comment. THE PROPOSAL ALSO said the new airline would guarantee Hawaii residents 10% of one-way inter-island seats at $55 or less and 20% of the one-way seats at $60 or less with yearly increases pegged to the Consumer Price Index. The proposal carries a loophole, though: The carrier could raise fares to cover costs such as insurance, fuel and security measures. Frequent flyer accounts would be protected as well as tickets bought before the merger for travel after the merger.THE STATE of Hawaii is spending $59 million to repair and upgrade its cruise ship ports in Honolulu, Nawiliwili on Kauai, Hilo on the Big Island and at Kahului on Maui. Most of the improvements, except for the pier at Kahului harbor, which already is under construction, are in the design phase and should be complete in two years, according to Jadine Urasaki, deputy director of the state transportation department.SULLIVAN PROPERTIES is offering travel agents a 15% commission on stays of four nights or more at six condominium properties in the west Maui area. The commission is good on stays booked through April 30. Call (888) 669-0324.THE ASTON KAANAPALI SHORES on Maui finished a $5 million lobby renovation. The condominium resort offers a fourth night free through June 30 on rates from $175 a night to $395 a night.THE PACIFIC BEACH HOTEL in Waikiki is giving guests one seafood and prime rib dinner for two and a fourth night free through March 31 when they book a package at the hotel through Pleasant Hawaiian Holidays.