LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

Aloha & Hawaiian Seek State Tax Break

Thu Feb 08, 2007 2:52 am

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.


Full article at;
http://the.honoluluadvertiser.com/ar...le/2007/Feb/06/bz/FP702060318.html
From the desert to the sea, to all of Southern California
 
ikramerica
Posts: 13762
Joined: Mon May 23, 2005 9:33 am

RE: Aloha & Hawaiian Seek State Tax Break

Thu Feb 08, 2007 3:03 am

Seems fair. Go should be exempt too, and Island Air, or other carriers shouldn't be exempt.
Of all the things to worry about... the Wookie has no pants.
 
ltbewr
Posts: 12390
Joined: Thu Jan 29, 2004 1:24 pm

RE: Aloha & Hawaiian Seek State Tax Break

Thu Feb 08, 2007 3:06 am

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.
 
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aloha73g
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Joined: Mon Jul 07, 2003 6:30 pm

RE: Aloha & Hawaiian Seek State Tax Break

Thu Feb 08, 2007 3:11 am

It makes perfect sense. I hope it passes.

Quoting Ikramerica (Reply 1):
Seems fair. Go should be exempt too, and Island Air, or other carriers shouldn't be exempt.

All carriers flying interisland would be exempt. Just to be clear, AQ and HA are not saying go! shouldn't be exempt....they are just the two carriers which are pushing the measure publicly.

-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: Aloha & Hawaiian Seek State Tax Break

Thu Feb 08, 2007 3:12 am

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

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