Effort to establish airports corporation advances

Subscribe Now Choose a package that suits your preferences.
Start Free Account Get access to 7 premium stories every month for FREE!
Already a Subscriber? Current print subscriber? Activate your complimentary Digital account.

Another attempt to consolidate management and planning for Hawaii’s airports is making its way through the state House of Representatives.

Another attempt to consolidate management and planning for Hawaii’s airports is making its way through the state House of Representatives.

The measure was first brought to the Senate last year by the late Hawaii Island Sen. Gilbert Kahele. That legislation died during conferencing.

This year’s bill, Senate Bill 658, was introduced by Sen. Lorraine Inouye, D-Hilo, Hamakua, Kohala, Waimea, Waikoloa, Kona, and would establish a Hawaii airport corporation comprised of a governor-appointed board of directors.

The board would consist of one representative each from Oahu, Maui, Kauai and the Big Island as well as a chief executive officer. It would manage operations for Hawaii’s 15 state airports.

SB 658 states that the primary motivation for creating such an entity is that airport “planning, management, marketing, and capital development functions” are spread across multiple state agencies, with long-term decision-making occurring only during the legislative session.

This causes delays in capital projects, Inouye said, citing the “bad bathrooms” at Honolulu International Airport as an example of projects that stumbled because of slow timelines.

“Things like that, they have to go out to bid and it takes a while; the bureaucracy comes in,” she said. “So with the corporation, the whole idea is … getting away from the bureaucracy.

“With the corporation, at least they understand they’re going to be managing airports, and what we’re saying is that when we come to Honolulu International, we want to be in competition with other nice airports.”

Having a more efficient system of airport management also could benefit small airports such as Hilo’s, which currently is the statewide loss leader.

“There are no profits made, so a lot of times there’s no improvements,” Inouye said. “It’s kind of piecemeal.”

Airport revenues come from airport users — namely, airlines and concessionaires.

At the start of this session, Inouye told West Hawaii Today the airport corporation was one of her main priorities. Hawaii is one of three states without a separate airport body.

Last year’s bill called for an airport authority, but Inouye said there was no fundamental difference between the rebranding as an airport corporation.

“It’s almost one and the same,” she said.

She said international airports such as Toyko’s Narita and Haneda airports are managed by a similar corporation system.

The measure has been opposed by labor groups such as the Hawaii Government Employees Association. In written testimony during Senate hearings, executive director Randy Perreira stated having multiple agencies involved in airport management was a way to “collectively protect the public interest.”

“The public benefits from the involvement of the Department of Health with respect to addressing environmental concerns, the Board of Land and Natural Resources with respect to protecting public lands and the Department of Human Resources Development with respect to enforcing the civil service law to render impartial service to the public,” he wrote.

Most submitted testimony has been in support of the plan, with some agencies such as the DOT proposing changes that would include a procurements officer on the board.

Inouye said she felt good about the bill’s chances of being passed.

“I’m very pleased,” she said. “Let’s have nice airports; I think our travelers deserve that.”

Email Ivy Ashe at iashe@hawaiitribune-herald.com.