Laxintl From United States of America, joined May 2000, 27312 posts, RR: 50 Posted (8 years 5 months 4 weeks 1 day 4 hours ago) and read 1626 times:
Hawaiian, Aloha ask for tax break
Tuesday, February 6, 2007
Hawaiian Airlines and Aloha Airlines are seeking state excise tax breaks that could total $12.8 million a year.
The state Senate Committee on Transportation and International Affairs yesterday advanced a bill that would exempt aviation fuel sold on O'ahu for interisland travel from state general excise and use taxes. The airlines contend Senate Bill 1034 will level the playing field between interisland carriers and carriers that fly from O'ahu to the Mainland and international destinations.
Currently, flights that purchase fuel in Honolulu International Airport's foreign trade zone aren't subject to state taxes, if they fly out of the state. Interisland carriers Aloha and Hawaiian want the same tax break. The biggest beneficiary of the tax break would be Aloha Airlines, which today said it would save $2.1 million a year.
LTBEWR From United States of America, joined Jan 2004, 13510 posts, RR: 17
Reply 2, posted (8 years 5 months 4 weeks 1 day 4 hours ago) and read 1608 times:
As inter-island air travel is such a critical part of the tourist industry and general life in Hawaii, the state legisgature there should lower or remove the aircraft fuel taxes to recognize the costs to major employers there.
Laxintl From United States of America, joined May 2000, 27312 posts, RR: 50
Reply 4, posted (8 years 5 months 4 weeks 1 day 4 hours ago) and read 1603 times:
I suppose its up to the Hawaiian consumer how much they want to subsidize airlines.
However this type of dual pricing is quite common around the world with domestic flights being subject to fuel taxation, while international or overseas flights in Hawaii's case are exempt , hence the term "bonded" and "non-bonded" fuel in the US.
And yes, it seems Go! should be able to take advantage of this also if it passes.
From the desert to the sea, to all of Southern California