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The Honolulu Advertiser
Posted on: Monday, March 31, 2008

Lawmakers still hopeful, vow support for workers

By Treena Shapiro
Advertiser Government Writer

Hawaii news photo - The Honolulu Advertiser

Gov. Linda Lingle

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Even after Aloha Airlines said its final flight for passengers will come tonight and 1,900 employees will be let go, some government officials are holding out hope that the airline's six-decade history really isn't drawing to a close.

The state Senate was already set to vote today on a bill that would exempt local carriers from the general excise tax on jet fuel, a measure lawmakers still hope can help the second-largest local carrier in the state. Legislation that would help the company was introduced after Aloha filed for bankruptcy on March 20.

"We don't want to say 'aloha oe,' and that's it," said Senate Ways and Means chairwoman Rosalyn Baker, D-5th (W. Maui, S. Maui).

Baker said the Senate will go ahead and hear the tax exemption bill and expects that it will pass, as it would help all local carriers by putting them on a level playing field with other carriers.

Another bill scheduled for a hearing tomorrow would offer the airline loan guarantees, but could be amended depending on what the airline needs after it goes before the bankruptcy court today.

"I don't think any of us want to give up on the notion that maybe something could be done to make Aloha look more attractive as an investment or purchase," Baker said.

Gov. Linda Lingle yesterday issued a press release saying she would petition the bankruptcy court to prevent the immediate shutdown of Aloha's flights until the airline shows it has exhausted all possible options for continuing operations.

CONCERN FOR WORKERS

All government officials reached yesterday were particularly concerned for the approximately 1,900 Aloha employees who stand to lose their jobs, and a rapid response team has been activated to help them explore their options.

"I think one of the things we'll have to determine is what happens to their pension, transitional healthcare and other kinds of things, as well as trying to help find additional jobs and job opportunities," Baker said.

The Rapid Response Team, like the one sent to help the employees facing layoffs at Molokai Ranch, will help Aloha employees evaluate their job skills and determine what kind of assistance they might need. Led by the Department of Labor and Industrial Relations, the team will explain benefits and programs such as unemployment insurance, health insurance coverage, job placement services and training opportunities.

"We fully understand the urgency Aloha's decision has created for the employees and their families, and we will do everything we can to assist the employees during this very difficult time," Lingle said.

Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), who has a reservation on Aloha this morning, said, "I'd just like to say it's a sad day for our state and I feel badly for the many employees and their families and the uncertainty they're now facing in their personal lives."

Hooser said he expects the Senate to continue to find ways to help all the interisland carriers, including Aloha if it manages to pull through in some form.

"I don't think we should take anything off the table at this point," he said.

HOPING FOR A BUYER

And, while the legislative session is just a month away from adjournment for the year, Senate President Colleen Hanabusa and House Speaker Calvin Say have agreed to waive internal deadlines if there is something they can do to help.

"Right now, we have to wait and see if there's anything that can be done that might attract a buyer of the whole airline," said Hanabusa, D-21st (Nanakuli, Makaha).

"We're hopeful that something will come up (after the bankruptcy court hearing today)," she said.

House Majority Leader Kirk Caldwell, D-24th (Manoa) agreed with the senators. "There's always a slim hope that maybe the court will come up with something that would allow another chance for Aloha Airlines," he said.

First and foremost, he said, the state needs to make sure that the airline employees are taken care of and that they are able to move smoothly into new jobs.

He noted that the state also has to make sure that there is as little impact on tourism as possible. "I'm sure there will be some fallout from the closing," he said.

The state's best bet is to address any dislocation quickly and smoothly, he said.

On the airline itself, Caldwell said, "It's a story of success in Hawai'i that many people can relate to. They were kind of the underdog and everyone was fighting and rooting for Aloha."

MEMORIES AND SUPPORT

Maui Mayor Charmaine Tavares issued a press release yesterday expressing concern for the 500 Aloha employees on Maui. The airline is the island's 11th-largest private employer.

"The loss of Aloha Airlines' passenger service is a blow to our economy, lifestyle and welfare of all affected," she said. "Time will tell just how severe the ripple effect will be, especially for the Neighbor Islands."

U.S. Congresswoman Mazie Hirono also sent out a release and pledged, "At the federal level, I will work with our Congressional delegation to explore all options available to provide assistance to workers who are losing their jobs and to ensure fair competition in our vital inter-island air service market."

U.S. Sen. Daniel K. Inouye sent a statement that reminisced about serving as a volunteer staff member in 1947, when Aloha Airlines was called Trans-Pacific Airlines.

"I wish to commend CEO Dave Banmiller for working round the clock and pursuing every possible angle. He did everything he could," Inouye said. "The goal right now is to provide for as smooth a transition as possible for the traveling public and for the transport of cargo."

WEB SITE FOR TRAVELERS

State tourism liaison Marsha Wienert said the state has started a gohawaii.com/alohaairlines Web site to help those who need immediate help with existing travel plans with Aloha. All the county visitor bureaus also are involved and will assist if necessary, she said.

Wienert believes Hawaiian, go! and Island Air will be able to accommodate those flying interisland in the near-term, especially since today is the end of spring break for the public schools and the University of Hawai'i.

"April and May are normally not as busy as other months of the year," she said. "I believe we have the capacity to accommodate all the visitors who choose to come and have a great vacation here."

Reach Treena Shapiro at tshapiro@honoluluadvertiser.com.