HONOLULU -- As inter-island airfares soar, many Hawaii travelers say they would welcome ferry service between the islands. The man ready to start ferry service in Hawaii was at the Legislature Tuesday to ask for what he said is the last piece of financing he needs to get going, a $40 million loan from the state.

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The Hawaii Superferry will look like the Euroferry, its sister ship that travels between Spain and Morocco.

Hawaii Superferry will carry nearly 900 passengers and 282 cars. It is designed to have lounges offering movies, three restaurants and a video arcade.

The first ship, being built now, is scheduled to begin service in early 2007.

Passengers KITV 4 News spoke with at Honolulu International Airport said they're excited.

"It would keep the prices down for travelers and give them an alternative," Kailua resident Terry Shishido said.

Pearl City resident Betty Urata said she'd be one of the first on board.

"I travel to Maui to visit my mom a lot and I could just bring my car over on the ferry. It will make a big difference," Urata said.

Hawaii Superferry Chief Executive Officer John Girabaldi told lawmakers Hawaii Superferry received its needed federal loan guarantee Friday. He said he still needs a $40 million loan from the state.

"It is the last financing piece that will couple with our $200 million of privately raised money," Girabaldi said.

The ferry terminal is already up and standing at Honolulu Harbor's Pier 19, but the company needs the $40 million to pay for passenger and vehicle ramps and other improvements both in Honolulu and at ferry terminals on the neighbor islands.

Traveling on the Hawaii Superferry will cost about half as much as inter-island airfares, according to company officials.

One-way fares between Oahu and Maui or Kauai would range between $50 and $60, depending on which day you travel. Big Island fares would range between $60 and $70.

The cost of sending your car would range between $55 and $65.

Travel time would be about three and a half hours.

Hawaii Superferry said it would repay the state's $40 million loan with money it expects to make in fares and charges.