HONOLULU -- Aloha and Hawaiian airlines are asking the
Transportation Department to give them antitrust immunity through
Oct. 1, 2003, to coordinate and reduce capacity on interisland
The immunity would not give the airlines permission to
coordinate or discuss flight schedules and fares, although the
agreement does provide for a "balancing payment" if the cuts were
to give one of the carriers a "disproportionate" share of
The carriers, who submitted their application July 31, said the
agreement also includes a guarantee that capacity coordination
would not eliminate service on any city-pair.
Without the short-term immunity on capacity, the airlines said,
the interisland flights "will continue to be unprofitable and thus
Neither airline earned a net profit on its overall interisland
operations in 1999 or 2000, even though those were two of the most
profitable years for the U.S. airline industry, they said.