****Docket number for this case is OST-2006-25612. ****
I ask that the DOT rule in favor of the HAL petition on the basis that this department must reaffirm the institution of property rights. HAL owns its planes and hires its employees without subsidy from the ASG, and it has the right to charge what it wants for its investment into the capital and labor that makes aviation to a remote location like American Samoa possible.
This is the foundation of free enterprise: The expectation of a company to reap the full rewards for the property that they build over time and despite risk drives people to venture into the unknown. Without this motivation, people would not have invented computers, air conditioners, washers/dryers, and all the other countless inventions that have saved us from the backbreaking labor of the past.
However, Governor Togiola’s executive order only serves to reinforce the idea that government can and should dictate the price mechanism of the free market. That if only enough constituents disagree or feel injured from the market price that government through democracy could vote the market price down. In my opinion, this is no different from a dictator ordering prices down upon whim.
We know what is really causing high airfares. US Cabotage laws that prohibit foreign competition, ASG excise taxes on fuel and overtime payments to ASG Customs and Immigration officials.
Instead of focusing its efforts on these issues, the local government thinks that attacking a private company with baseless rhetoric such as “predatory profits” and “highway robbery” is the best course of action. If the rule of law is not applied in American Samoa, then it will be wild-wild-west style politics that determines who gets to do what and at what price and that the only way to do business in AS is to buy some politician a fautasi boat for his district [in reference to McDonalds of AS buying a fautasi boat for the Governor's traditional district, Sua ma Vaifanua -- not included in original testimony].
NOTE: The U.S. federal government's Department of Transportation has a PDF of the above testimony over here while the DOT's profile of this testimony is here.
