HI HB2308

Establishes a reimbursement program administered by the Hawaii Tourism Authority to reimburse airlines for costs of adding new direct flight routes from airports without existing Hawaii service to untapped visitor markets.

Reimburses 1% of direct operational costs for US or Canadian-based carriers (capped at $300,000 per one-way flight) and 1.5% for other international carriers (capped at $450,000 per one-way flight).

Eligible costs include crew labor, fuel, aircraft lease costs, food and beverages, and aircraft cleaning; excludes taxes, landing fees, maintenance costs, and administrative overhead.

Limits reimbursement to the first calendar year of operation and requires airlines to file certification and cost projections with the Hawaii Tourism Authority before commencing service.

Appropriates $2,000,000 from general revenues for fiscal year 2012-2013 and sunsets the program on December 31, 2013.