Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, August 26, 1997

HawTel must resubmit
rate-hike request

The state Public Utilities Commission has denied GTE Hawaiian Tel's request to consider a rate-increase proposal in a pending case designed to encourage local telecommunications competition.

But the PUC said the proposal could be considered in another case specifically set up to evaluate the increase.

The panel told GTE the purpose of the first case was not to decide on specific rates. Among its purposes, the commission said, was to consider generally whether GTE needs to rebalance rates.

GTE had requested public hearings so people could comment on the rate proposal, which would substantially increase the cost of basic phone service while decreasing interisland toll rates. The commission said public hearings would be set after GTE files a request in the actual rate case.

Court hands developer
victory on Kona lands

A state court has upheld the reclassification of 1,000 acres of Big Island land for a residential and resort development.

Kaupulehu Developments, a partnership half owned by Barnwell Industries Inc., got the favorable ruling for its proposed North Kona project, Barnwell said today.

Kaupulehu last year had received approval from the state Land Use Commission to reclassify the oceanfront acreage from conservation to resort/residential.

But opponents of the project appealed the commission's decision to state court.

The partnership still needs county zoning approvals before it can start the project. Honolulu-based Barnwell, an oil and gas exploration company, has controlling interest in the partnership. Cambridge Hawaii, composed of U.S. and Canadian investors, is the other Kaupulehu partner.

Eva Air, Continental
sign marketing pact

TAIPEI -- Eva Airways Corp. of Taiwan said today it agreed to join in a five-year alliance with Continental Airlines Inc., the fifth largest U.S. airline.

The Taiwan airline, which has three weekly Taipei-Honolulu flights, said the code-sharing alliance will effectively increase its U.S. routes to 22 from five. The code-sharing deal allows passengers to book flights on either airline using one reservation.

The alliance will enable the airlines to share resources, save costs and improve services, Eva said.

Eva said it expects the alliance, which will start early next year, to add about 5 percent in revenue from expanded services. Continental, based in Houston, said the alliance will enable the airline to build a presence in Southeast Asia.

In other news ...

NEW YORK -- Shares of Novell Inc. rose 11 percent today on speculation that International Business Machines Corp. is poised to take over the network software company.