Tuesday, April 1, 2008

HI Superferry: "Pot calling the Kettle Black?"

Quote of the day from Aloha Air CEO David Banmiller:

"I mean we have support for the Superferry whose business model is broken, we have support to go buy a hotel resort or something, so any missconception we weren't out there turning over every rock, talking to state and federal officials and investors and airlines is simply an error."

With both cases the Governor sought government intervention in the free market to be assisted by the Legislature for new "special privilege" law of a company-specific nature. In both cases, the biggest problem to the company is the rising cost of fuel. In both cases, the Governor believes that government actions can overcome primarily microeconomic problems within a company. In both cases the Governor has missed what the primary obstacle is within the company.

For Aloha Air, that was the need for Working Capital right now to pay employees and to pay for fuel. Her proposals and in the Legislature did not immediately address that. For HSF, the vessel design and fuel consumption over the long routes proposed are actually their biggest internal commercial problems, of which the Governor and the Legislature never appear to have recognized.

Both involve the development of the single biggest economic problem Hawaii has seen in decades, the cost of fuel and Hawaii's overpopulated, unsustainable reliance upon 90% outside sources of energy. Meanwhile, the Legislature lets plenty of good energy and sustainability bills (and I don't mean the 5 or so "special privilege" bills) languish with inaction.

Couple of good articles today:
From Lee: http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080401/COLUMNISTS02/804010371

From Derrick: http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080401/NEWS01/804010367

Aloha, Brad

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