On Maui, merger news doesn’t bring overwhelming disappointment

The Maui News
March 18, 2002

By CLAUDINE SAN NICOLAS
Staff Writer

WAILUKU — Reactions to the apparent foiled takeoff of a local airline merger ranged from resignation to happiness, and neither Maui officials nor airline employees expressed overwhelming disappointment Sunday.

The least enthusiastic assessment was made by the chairman of the state House Transportation Committee.

“I believe one of the airlines will probably fold, or they’ll have to sell to someone else,” said Rep. Joe Souki, D-Maalaea, Waihee, Kapalua, Waiehu, Honolua, Wailuku.

“It’s ironic but I fear we’ll end up with one airline — and a weakened one” at that, he said.

On Saturday, Hawaiian Airlines announced it would not extend an April 18 deadline for completing a merger with Aloha Airlines. Aloha reacted Sunday by saying it could not accept Hawaiian’s merger proposal, in part because of the competitor’s power bid to lead a new airline.

Resigned to the apparent collapse of an Aloha-Hawaiian merger, local leaders said isle travelers and visitors must continue to support both major isle carriers.

Maui County economic development coordinator, Roz Baker, said her concern has been that residents can continue to get reasonably priced airfares.

“This is really an essential service for the county,” she said. “Hopefully the two airlines can continue to be strong.”

Baker added that commenting on a proposed merger has been difficult from the get-go since county officials haven’t been privy to the business details.

But Souki was privy before Saturday’s announcement by Hawaiian to information that the merger would be called off.

“Of course, I was surprised when I first heard about it,” he said.

State Sen. J. Kalani English, D-Wailuku, Kahului, Upcountry, and Rep. Chris Halford, R-Makena, Ulupalakua, Kula, Pulehu, Kihei, both said they preferred to have two competing airlines.

“I think they’ll be viable if they concentrate on customer service,” English said of the airlines.

Souki indicated he has patronized the competing carriers equally over more than two decades of travel.

“I have friends on both sides,” he explained.

Hawaiian pilot Kirk McBride, a member of the Citizens for Competitive Air Travel group, disagreed with Souki’s opinion about the eventual elimination of one airline.

McBride said merger opponents have suggested that each airline should seek means to economic survival other than merger. He said the carriers have not explored options such as financial reorganization or application for federal loans.

“Neither of these airlines have anything to crow about,” said McBride, referring to an alleged failure to seek alternate measures to operate separately.

Hawaiian pilot Dennis Tearn said he was happy the merger apparently will not take place.

“I haven’t met an employee who isn’t happy,” Tearn said.

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