Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 10, 1 October 1997 — FUNDS: Govenor Cayetano waives landing fees; airlines to save millions [ARTICLE]

FUNDS: Govenor Cayetano waives landing fees; airlines to save millions

By Paula Durbin In an effort aimed at boosting the state's sagging tourism industry, Govemor Cayetano recently announced a two-year waiver of fees to land at airports throughout Hawai'i, effective Sept 1 . Under state law, the Office of Hawaiian Affairs, on behalf of Native Hawaiians, is entitled to 20 percent of all revenues ffom ceded lands controlled by the State of Hawai'i, and 35 percent of airport operations statewide sit on ceded lands. Last year, the Federal Aviation Administration ruled that landing fees could only be used for airport improvements, and not to satisfy the state's legal obligation to OHA. But according to OHA Administrator Randall Ogata, the FAA ruling does not relieve the state of its obligation to pay OHA 20 percent of the revenue raised from ceded lands at the airport. "There is no requirement placed on the state that

it must satisfy its obligation to OHA out of the airport fund," said Ogata. i "The obligation to pay OHA is f unchanged." The govemor justified the suspension of landing fees with a cash surplus in the airport revenue fund, reported in the hundreds of mil-

lions, resulting from the cancellation of improvement projects. "In spite of the surplus," insisted Ogata, "the state continues to hold in escrow approximately $1 1,000,000 due OHA as of June 30, 1997." Governor Cayetano hopes the airlines will schedule more flights to bring more visitors to the state, but the current flight schedule seems to be meeting the demand. Meanwhile, airline officials are hailing the govemor's moratorium on fees whieh, over the two-year period, will save their eompanies $72,000,000. Despite the savings, some carriers such as Northwestem, have canceled flights, and others, including Aloha Island Air, have raised prices. Legally, the airlines cannot be asked for anything in retum for the windfall, but a tourism industry advertising campaign has urged the major carriers to contribute. Some companies, such as Hawaiian Airlines, have announced they will participate. "Along with the landing fees, the governor waived the

20 percent due OHA without even consulting us." said Ogafa. "Although a few of the airlines are going to participate in the marketing campaign, most of them are going to pocket OHA's | money. How does that help Hawai ' i ' s economy?" ■

C £ The FAA ruling does not relieve the state of its obligation to pay 0HA 20 percent of the revenue raised from ceded lands at the airport.