Thursday, June 22, 2006

FROM TERRIBLE SERVICE TO TYRANNY

Hawaiian Airlines is not public property. They bought the planes, paid the wages, stored the fuel, and maintained all the equipment. They took the risk that no one else around here wanted to take and still managed to survive in our market against other competitors. High prices may hurt our pocketbooks, but what is the alternative? Rowing our canoes to Hawaii?

If Togiola and his experts from the mainland are so certain that they can get an airline to outperform HAL, why does HAL have to leave our market for that to happen? Why can’t this hypothetical airline compete against HAL instead?

The answer: Aloha Airlines.

Whatever Togiola has up his sleeves can’t make it in this market because HAL will match them pound for pound. That’s what competition does. If Togiola can find somebody to offer $500 roundtrip tickets here, HAL will follow suit. Yet such price wars would be unsustainable in a market with a very low-seat occupancy rate like ours. Togiola’s contender would literally fall out of the sky.

My only conclusion is that Togiola wants HAL to leave so that his new airline will be the new monopoly, and he would benefit in some way from it. If this is the case, we would have traded terrible service from HAL for Togiola’s tyranny.

1 Comments:

At 9:07 PM , Blogger Stuart K. Hayashi said...

Hey Taliphone,

You are very bold making these charges about the intentions of a high-ranking official. I never impugn the motives of any regulationist politician unless I have documented proof of malfeasance. When the official says that these accusations are unfounded, will you have a great deal of documentation to show that indeed such is happening? Such documentation is your protection.

The situation you have described sounds like that movie you said was one of your favorites, The Aviator. Perhaps more people would understand the airline market better if they saw this film?

Has Hawaiian Airlines testified in front of American Samoa's government about this controversy?

 

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