Honolulu Record, September 2, 1948, vol. 1 no. 5, p. 3
From Airlines It Controls
Ways and means of keeping the Hawaiian Airlines in its present capacity as the only certified air carrier in the Territory is under consideration by the Inter-Island Steam Navigation Co.
Stanley C. Kennedy, president of Inter-Island, in a statement to a local daily, said that the directors of the steamship company have been studying plans to divorce the two companies so that they will be "independent organizations."
Inter-Island controls 90 per cent of the Hawaiian Airlines stock.
The new Inter-Island planning follows a strongly worded report made recently by Examiner Thomas E. Wrenn of the Civil Aeronautics Board.
Mr. Wrenn, who conducted hearings here last March, stated in his report:
"The board has never been faced with a clearer instance of monopoly or control of transportation facilities."
This was said in reference to air and surface transportation of Hawaiian Airlines and its parent company, the Inter-Island Steam Navigation Co.
In his statement to the press last week, Mr. Kennedy said: " . . .the directors (of Inter-Island) have concluded that it is in the best interest of the Inter-Island stock-holders that the two companies be completely divorced."
He said that Examiner Wrenn had recommended "the granting of a temporary certificate for additional service" solely on the grounds that Hawaiian Airlines is Inter-Island controlled. Mr. Wrenn recommended that Trans-Pacific Airlines, Ltd., be permitted to fly passengers, mail and property for three years over routes between the Hawaiian Islands.
Hawaiian Airlines, Ltd., has opposed the applications of Trans-Pacific Airlines, Ltd., and Trans-Air Hawaii with the argument that it alone can handle all air transportation needs here.