[§261E-12]  Rates, fares, and other charges of air carriers.  (a)  In the transportation of passengers, every Hawaii air carrier shall:

     (1)  Provide safe and adequate service, equipment, and facilities for the transportation of the passengers; and

     (2)  Establish, observe, and enforce just and reasonable:

          (A)  Rates, fares, and charges;

          (B)  Regulations and practices relating to rates, fares, and charges; and

          (C)  Regulations and practices relating to:

              (i)  The issuance, form, and substance of tickets;

             (ii)  The carrying of personal, sample, and excess baggage;

            (iii)  The facilities for transportation; and

             (iv)  All other matters relating to or connected with the transportation of passengers as determined by the commission.

     (b)  In the transportation of property, every Hawaii air carrier shall:

     (1)  Provide safe and adequate service, equipment, and facilities for the transportation of the property; and

     (2)  Establish, observe, and enforce just and reasonable:

          (A)  Rates, charges, and classifications;

          (B)  Regulations and practices relating to rates, charges, and classifications; and

          (C)  Regulations and practices relating to:

              (i)  The manner and method of presenting, marking, packing, and delivering property for transportation;

             (ii)  The facilities for transportation; and

            (iii)  All other matters relating to or connected with the transportation of property as determined by the commission.

     (c)  All charges made for any service rendered by any Hawaii air carrier in the transportation of passengers or property or in connection with the service shall be just and reasonable and every unjust and unreasonable charge for the service or any part thereof shall be prohibited and declared to be unlawful.

     (d)  Any person or body politic may make a complaint in writing to the commission that any rate, fare, charge, rule, or practice, in effect or proposed to be put into effect, is or will be in violation of this section.  Whenever, after hearing, upon complaint or in an investigation on its own initiative, the commission determines that any individual rate, fare, or charge, demanded, charged, or collected by any Hawaii air carrier, or any rule or practice whatsoever of the Hawaii air carrier affecting the rate, fare, or charge or the value of the service is or will be unjust or unreasonable, the commission shall determine and prescribe the lawful rate, fare, or charge or the maximum or minimum rate, fare, or charge thereafter to be observed, or the lawful rule or practice thereafter to be made effective.

     (e)  In the exercise of its power to prescribe just and reasonable rates, fares, and charges for the transportation of passengers or property by Hawaii air carriers and to prescribe classifications, rules, and practices relating thereto, the commission shall give consideration, among other factors, to the following:

     (1)  The effect of the rates upon the movement of traffic by the Hawaii air carrier or carriers for which the rates are prescribed;

     (2)  The need, in the public interest, of adequate and efficient transportation service by the carriers at the lowest cost consistent with the furnishing of the service; and

     (3)  The need for revenues sufficient to enable the carriers, under honest, economical, and efficient management, including the operation of service at reasonable load factors, to provide the service.

     (f)  The commission shall establish and thereafter periodically adjust the recognized level of the fare, rate, or charge.  The commission may adjust the recognized level by increasing or decreasing it, as appropriate, by the percentage change in the aggregate cost per available seat mile of similarly situated carriers for fares and per available ton mile for general commodity rates.

     (g)  The commission shall have no authority to find that any fare, rate, or other charge for service established by any Hawaii air carrier is unjust, unreasonable, or unjustified or to suspend the fare, rate, or other charge on the basis that the fare, rate or charge is too low or too high if the fare, rate, or charge is not more than five per cent higher or ten per cent lower than the recognized level of the fare, rate, or charge.  Separate recognized levels shall be established and thereafter periodically adjusted on a peak and off-peak basis for first class fares, normal economy fares, tour basing fares, group fares, kamaaina fares, and for general commodity rates.  The commission shall have no authority to find that a contract freight rate is unjust or unreasonable. [L Sp 2008, c 1, pt of §2]