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.
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