Airline Competition: Cargo Airline Has Enhanced Competition in Hawaii but Faces an Uncertain Future

Pursuant to a congressional request, GAO reviewed the basis for the Federal Aviation Administration's (FAA) revision of its interpretation of turnaround service in Hawaii, focusing on determining how American International Cargo's (AIC) November 1995 entry into the Hawaiian inter-island air cargo market with relatively noisy Stage 2 aircraft has affected--and how its potential future exit could affect--competition in Hawaii's air cargo markets.