“Sometimes, you don’t need to hear their excuses or what they have to say for themselves because their actions already spoke the truth.” – WorkingWomen.com

1. Dear Governor Ige, Lieutenant Governor Tsutsui, Senate President Kouchi, House Speaker Souki, Chief
Justice Recktenwald, Associate Justice Nakayama, Associate Justice McKenna, Associate Justice Pollack,
Associate Justice Wilson, Members of the Maui Delegation to the Hawaii Senate and House of
Representatives, Members of the Hawaii Senate and House of Representatives, Mayor Alan Arakawa and the
Maui County Council,
The Hawaii Public Utilities Commission by House Bill 2250 HD1, Act 1 of the 2008 Special Session is
granted jurisdiction and authority to regulate intrastate air cargo carriers.
House Bill 2250 HD1, Act 1 of the 2008 Special Session established the regulation of Hawaii intrastate air
carriers. Act 1, Section 4 stated, “This Act shall take effect upon its approval; provided that section 2 shall
take effect upon the enactment of federal legislation permitting implementation of that section.”
Hawaiian Holdings, Inc. Annual Reports – 10K SEC Filings for 2014 and 2015 states, “Congress has not
enacted any legislation that would allow this legislation to go into effect.” Hawaiian Airlines is a subsidiary of
Hawaiian Holdings, Inc.
Federal legislation permitting implementation of Section 2 of Act 1, House Bill 2250 HD1 took effect on
November 9, 1977 by PUBLIC LAW 95-163, 91 STAT. 11278.
While TITLE 49 U.S. CODE §40102(a)(25)(A)(ii) tends to support Hawaiian Holdings, i.e., “interstate air
transportation means the transportation of passengers or property by aircraft as a common carrier for
compensation, or the transportation of mail by aircraft between a place in Hawaii and another place in Hawaii
through the airspace over a place outside Hawaii” regards, discussion of the Hawaii Supreme Court as to
“another place in Hawaii through the airspace over a place” see, Application of Island Airlines, Incorporated.
384 P.2d 536 (1963). TITLE 49 U.S. CODE § 40102(a)(27) states, “intrastate air transportation means the
transportation by a common carrier of passengers or property for compensation, entirely in the same State, by
turbojet-powered aircraft capable of carrying at least 30 passengers.”
Please refer to the following discussion and background material furnished.
Noted, Island Air (1963) predates the passage of P.L. 95-163 (1977) and codification in 49 U.S.C. §40102.
We respectfully request immediate action be taken to implement Act 1, House Bill 2250 HD1 (2008).
Thank you very much
Aloha
Respectfully,
Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates, LLC
1322 Lower Main Street A5
Wailuku, Hawaii 96793
Telephone: (808) 244-5425
Email: clifhasegawa@gmail.com
LinkedIn: https://www.linkedin.com/in/cliftonhasegawa

2. DISCUSSION
PUC Regulation of Public Utilities
Generally under Chapter 269 of the Hawai`i Revised Statutes (HRS), the Legislature granted the Public
Utilities Commission (PUC) general powers and duties for the regulation of “public utilities”. As charged by
the Legislature (see, e.g. HRS §269‐16), the PUC’s mission is to (a) ensure that regulated public utilities
provide their customers with adequate and reliable services in an efficient and safe manner at just and
reasonable rates while (b) providing such companies with a fair opportunity to earn a reasonable rate of
return. As directed and authorized by Chapter 269, the PUC regulates five categories of public utilities:
(1) transportation of passengers and freight (with transportation of freight governed by Chapters 269, 271,
and 271G), (2) telecommunications, (3) storage or warehousing of goods (when found necessary by the
commission), (4) private sewage disposal, and (5) provision of light, power, heating, cooling, water, gas, or
oil.
The PUC’s authority to regulate transportation currently excludes “aerial transportation
enterprise[s]” such as an airline or air cargo carriers.
_____________________________________
PUBLIC LAW 95-163
November 9, 1977
91 STAT. 11278
http://uscode.house.gov/statutes/pl/95/163.pdf
An Act To Amend Title XIII of the Federal Aviation Act of 1958
For purposes of this section, the term ‘interstate air transportation of property’ means—
“(A) the carriage by aircraft of property as a common carrier for compensation or hire in commerce
between a place in any State of the United States, or the District of Columbia, and a place in any other State
of the United States, or the District of Columbia (other than the carriage by aircraft of property by a common
carrier between any pair of points both of which are within the State of Alaska or Hawaii if such carriage is
part of the continuous carriage of such property and another common carrier provides, as part of such
continuous carriage, the carriage by aircraft of such property between any pair of points one of which is
within the State of Alaska or Hawaii and the other of which is not within the same State); or between places
in the same State of the United States (other than the State of Alaska or Hawaii) through the
airspace over any place outside thereof; or between places in the same territory or possession of the
United States, or the District of Columbia;
_____________________
UNITED STATES CODE

3. Title 49 U.S. Code § 40102 - Definitions
(a) General Definitions.—In this part—
(25) “interstate air transportation” means the transportation of passengers or property by aircraft
as a common carrier for compensation, or the transportation of mail by aircraft—
(A) between a place in—
(i) a State, territory, or possession of the United States and a place in the District
of Columbia or another State, territory, or possession of the United States;
(ii) Hawaii and another place in Hawaii through the airspace over a place
outside Hawaii;
(iii) the District of Columbia and another place in the District of Columbia; or
(iv) a territory or possession of the United States and another place in the same
territory or possession; and
(B) when any part of the transportation is by aircraft.
(26) “intrastate air carrier” means a citizen of the United States undertaking by any means to
provide only intrastate air transportation.
(27) means the transportation by a common carrier of“intrastate air transportation”
passengers or property for compensation, entirely in the same State, by turbojet-
powered aircraft capable of carrying at least 30 passengers.
1. Aloha Air Cargo’s aircraft fleet consists of two (2) AAC_Fleet_HeroBoeing 737-200 freighters, two (2)
Boeing 737-300 freighters, and three (3) Saab 340A Turboprops [Cargo Option] [Clarification Supplied]
Source: Aloha Air Cargo. http://www.alohaaircargo.com/about/ Web Accessed: December 28, 2016
Saab 340 The Versatile Turboprop. http://www.saabaircraftleasing.com/prod/datasheets/340Brochure.pdf
Web Accessed: December 28, 2016 [Note, supplied: Seating up to 33 passengers and/or Cargo]
2. Hawaiian Airlines operates 3 ATR-42 for flights within the State of Hawaii.
http://www.aircargonews.net/news/single-view/news/hawaiian-airlines-to-add-all-cargo-aircraft-to-
fleet.html Web Accessed: December 28, 2016
The ATR 42 is a twin-turboprop, short-haul regional airliner built in France and Italy by ATR (Aerei
da Trasporto Regionale or Avions de Transport Régional). ATR and Airbus are both built in
Toulouse, sharing resources and technology. The name “42” comes from the aircraft’s standard
seating, which varies from 40 to 52 seats. The ATR 42 came in six major variants. A STC is available
to convert all ATR 42 variants to all-cargo transport aircraft. Web Accessed: December 28, 2016.
http://worldwide-aircraft.com/services/aircraft/atr-42

4. 3. Transair is one of Hawaii’s largest Cargo Airlines. Operating since 1982, our fleet of three Boeing 737
and seven Bombardier SD3-60-300 aircraft fly daily to all major Hawaiian island destinations of Kauai, Maui,
Kona and Hilo with extended service to Lanai and Molokai. Web Accessed: December 28, 2016
The Short 360 seats up to 39 passengers and was introduced into service in November 1982. The
360/300 was also built in 360/300F freighter configuration. The 360’s power is supplied by two
Pratt & Whitney PT6A-65Rs. The PT6A turboprops are fully ICAO Stage 3 noise-compliant,
making the 360 one of the quietest turboprop aircraft operating today.
https://en.wikipedia.org/wiki/Short_360 Web Accessed: December 28, 2016.
____________________________________
Background
Our mission every year is to grow a profitable airline with a passion for excellence, our customers,
our people and the spirit of Hawai’i.
The State of Hawai’i is uniquely dependent upon air transportation. The 2008 shutdowns of air
carriers Aloha Airlines and ATA Airlines affected the State of Hawai’i, and its legislature responded
by enacting legislation that reflects and attempts to address its concerns. For example, House Bill
2250 HD1, Act 1 of the 2008 Special Session, establishes a statutory scheme for the regulation of
Hawai‘i neighbor island air carriers, provided that federal legislation is enacted to permit its
implementation. Congress has not enacted any legislation that would allow this legislation to go into
effect.
Source: Hawaiian Holdings Annual Report 2015 and Form 10-K Filed with The Securities And Exchange
Commission. Web Accessed: December 28, 2016.
https://newsroom.hawaiianairlines.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/249/files
/20163/Annual%20Report%202015.pdf
______
Our mission every year is to grow a profitable airline with a passion for excellence, our customers,
our people and the spirit of Hawai’i.
The State of Hawai‘i is uniquely dependent upon air transportation. The 2008 shutdowns of air
carriers Aloha Airlines and ATA Airlines affected the State of Hawai’i, and its legislature responded
by enacting legislation that reflects and attempts to address its concerns. For example, House Bill
2250 HD1, Act 1 of the 2008 Special Session, establishes a statutory scheme for the regulation of
Hawai‘i neighbor island air carriers, provided that federal legislation is enacted to permit its
implementation. Congress has not enacted any legislation that would allow this legislation to go into
effect.
Source: Hawaiian Holdings Annual Report 2014 and Form 10-K Filed with The Securities And Exchange
Commission. Web Accessed: December 28, 2016.
https://newsroom.hawaiianairlines.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/249/files
/20156/HA%20Annual%20Report%202014.pdf

5. HB2250 HD1- Establishes a statutory scheme for the regulation of Hawaii inter-island air carriers; provided
that federal legislation is enacted to permit implementation.
SECTION 1. The legislature finds that air transportation is uniquely important to the people of the State of
Hawaii. The construction of surface transportation systems linking the various islands of Hawaii on the
comprehensive basis that prevails elsewhere in the United States is impractical. Accordingly, the people of
the State of Hawaii must rely extensively on air travel for their basic daily personal transportation needs and
for the shipment of goods that are important to their daily lives. Similarly, visitors to the State must often
rely on local air travel services provided by Hawaii air carriers for transportation among the various islands.
This makes reliable air transportation among the islands of the State vital to the growth of the statewide
tourism industry.
The legislature finds that these concerns can best be addressed by the regulation of air services between
points in the State of Hawaii at the state level. The legislature finds that the current policies adopted at the
national level may be inappropriate to the unique environment of Hawaii interisland and local service and,
further, that policies adopted by the State of Hawaii in the regulation of this service will not impair
implementation of national regulatory goals, including safety regulation, which shall remain exclusively within
the jurisdiction of the Federal Aviation Administration.
Accordingly, the purpose of this Act is to establish a statutory scheme for state regulation of interisland air
carriers, to the extent permissible under the Constitution and laws of the United States.
SECTION 4. This Act shall take effect upon its approval; provided that section 2 shall take effect
upon the enactment of federal legislation permitting implementation of that section.
[Emphasis Supplied]
Source: http://www.capitol.hawaii.gov/session2008/bills/hb2250_hd1_.htm Web Accessed: December 28,
2016.
EXECUTIVE CHAMBERS, HONOLULU July 8, 2008
STATEMENT OF OBJECTIONS TO HOUSE BILL NO. 2250 [In part]
This bill is objectionable because there is a serious potential that the bill, if it becomes effective, will harm
consumers and the market. The bill will substitute regulation for competition, shield air carriers from
competitive forces, and thereby likely lead to higher costs, higher prices, and reduced quality of
service. The bill will make it more difficult for carriers to enter, serve new routes, alter their fares, or
introduce new services or pricing models, and will thereby reduce the carriers' incentives to operate efficiently
and compete. The underlying premise for the bill that regulation is necessary to ensure the
maintenance of inter-island air transportation services is not substantiated by the fact that the four largest
interisland routes are among the top domestic city pairs, based on passenger traffic within the United States.
For the foregoing reasons, I am returning House Bill No. 2250 without my approval.
Linda Lingle Governor of Hawaii
Source: http://www.capitol.hawaii.gov/session2008/bills/gm897_.pdf Web Accessed: December 28, 2016.

6. 7/8/2008 S
Veto overridden - 2/3’s vote: Ayes, 19; Aye(s) with reservations: none . Noes, 3 (Hemmings,
Slom, Trimble). Excused, 3 (Bunda, Inouye, Whalen).
7/8/2008 H
Veto overridden by 2/3's vote with Ayes; Noes Representative(s) Ching, Finnegan,
Marumoto, Meyer, Pine, Ward; and Excused Representative(s) Belatti, Berg, Bertram, Saiki,
Shimabukuro, Thielen, Tokioka.
7/8/2008 S
Received from House (Hse. Com. No. 835) motion to override veto that was approved and
carried by a 2/3 vote by the members of the House.
7/10/2008 H
Received from Senate (Sen. Com. No. 749) motion to override veto that was approved and
carried by a 2/3 vote by the members of the Senate.
7/10/2008 H Act 1, 2008 Special Session, on 07-08-08, veto overrride.
7/11/2008 S Veto override, Special Session 2008, Act 1 on 07-08-08.
Source:
http://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=HB&billnumber=2250&year=2008
Web Accessed: December 28, 2016.
_____________________
UNLEASHING INNOVATION: THE DEREGULATION OF AIR CARGO TRANSPORTATION
• Mercatus Center, George Mason University, December 15, 2014
• By Kenneth Button and David Christensen
• https://www.mercatus.org/publication/unleashing-innovation-deregulation-air-cargo-
transportation Web Accessed: December 28, 2016.
“Deregulation of the airline industry occurred in two stages: the first happened with the passage of
Public Law 95-163 deregulating interstate air cargo transport in 1977; this was followed a year later
by the Airline Deregulation Act of 1978 deregulating the air passenger industry.”
Proudly Serving Hawaii – Hawaiian Style