HONOLULU -- A group calling itself Citizens for Competitive Air
Travel presented to Hawaii Gov. Ben Cayetano a petition bearing
20,000 signatures opposing the proposed merger of Hawaiian and
Aloha airlines.
The group held its first press conference at the state capitol
after forming about a month ago. Following the press conference
they delivered the petitions to the governor's office.
The group was started by several Hawaiian Airlines pilots but
has grown to a broader range of about 150 members including two
former lieutenant governors and one former chairman of the state
Democratic Party.
The group is opposing the merger because they fear it will
create a monopoly on interisland air service, forcing prices up and
service down.
"When there's only one game in town, guess what they're going to
do?" said Kevin Jones, a member of the group and a frequent
business traveler in the islands.
A spokeswoman for TurnWorks, the company attempting to merger
the two airlines, said the company would not comment on the
petition.
She did say the financial situation of both airlines "will
become apparent with the filing of a 300-plus page proxy with the
Securities and Exchange Commission," this week. Hawaiian, Aloha and
TurnWorks are seeking the merger because they say both airlines are
on the ropes, are hurting each other even more and will not survive
without it.
But Jay McLaren, a Hawaiian Airlines pilot present at the state
capitol press conference, said neither Hawaiian nor Aloha airlines
have attempted other remedies besides a merger to help themselves
out of their current economic slumps.
"With this merger they've gone straight from A to Z without
exhausting any of their alternatives," McLaren said.
Some of those alternatives, said McLaren, are taking advantage
of provisions in the Aviation Security Act that allows Hawaii
airlines -- with Transportation Department approval -- to share
information on flight schedules.
"So if Hawaiian leaves at 6 a.m. for Maui, Aloha could leave at
6:30," said McLaren.
Greg Brenneman, the head of TurnWorks, has said the two airlines
are currently wasting money and bleeding themselves to death
because they offer flights at the same time to the same places with
planes that are half full and losing money.
That scheduling exemption from antitrust law will expire in
August, said McLaren, but it could be extended.
Another way the airlines could save money is by cutting labor
costs, said McLaren.
"In general, it's known that Aloha employees make more than
those at Hawaiian, so Aloha could trim a little bit," said McLaren.
"It would be better to cut back on wages than to cut jobs, which is
what would happen with a merger."
The two airlines could take advantage of federal loan
guarantees; the state of Hawaii could offer them loans and both
airlines could offer an employee ownership program, said
McLaren.