[Congressional Record Volume 142, Number 97 (Thursday, June 27, 1996)]
[Extensions of Remarks]
[Page E1198]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  ADD CARRIER COMPETITION TO PASSENGER AIR ROUTES BETWEEN PAGO PAGO, 
                       AMERICAN SAMOA AND HAWAII

                                 ______
                                 

                       HON. ENI F.H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                        Thursday, June 27, 1996

  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to introduce legislation 
which will add carrier competition to the passenger air routes between 
Pago Pago, American Samoa and Honolulu, HI.
  Mr. Speaker, the experience of the people in the territory I 
represent is a good example of the difficulties we Pacific Islanders 
face in establishing regular and reliable air transportation at a 
reasonable rate for passengers, vital cargo, and mail.
  American Samoa is comprised of a remote group of islands located in 
the South Pacific Ocean. The territory is approximately 2,200 miles 
from the closest State in the United States, which is the State of 
Hawaii. With millions of square miles of open ocean surrounding our 
islands, air transport is not simply a faster way for travelers to get 
from point to point, it is often the sole and only feasible means to 
bridge our isolation.
  Because American Samoa is a remote destination, the U.S. Department 
of Transportation, in an effort to assure at least minimal air service, 
designated Pago Pago, American Samoa as an EAS--essential air service--
community on October 26, 1979. This designation recognizes that 
American Samoa is a remote location in need of air service on a regular 
basis to ensure that certain necessities are available.
  The U.S. Postal Service averages between 27,000 and 30,000 pounds of 
mail per week for local residents. Among other vital cargo carried on 
this route are medical supplies such as Hepatitis B serum, hemodialysis 
supplies, insulin, samples requiring laboratory testing, and blood 
packs for rare blood types. Because ocean shipping can take up to 2 
months, perishable food items such as bread, vegetables, dairy 
products, and meat must come in by air.
  Currently, there is only one airline providing service between 
American Samoa and Honolulu. This airline reported an operating profit 
of 50 percent on the route for 1995, by comparison, an operating profit 
of 10 percent is considered good on other domestic routes. The American 
Samoa Government has tried for years to attract a second air carrier to 
the route, but history has shown that our market can only support one 
carrier at a time. After looking at the route, each potential carrier 
has determined that there is insufficient passenger traffic for two 
airlines and each has declined to enter the market.
  This scenario provides the sole air carrier with a virtual monopoly 
and affords the carrier the opportunity to charge excessive rates.
  The legislation I am introducing today, if enacted into law, will 
direct the Secretary of Transportation to solicit proposals from air 
carriers which are willing to provide a certain minimum level of 
service between American Samoa and Honolulu. The figures show that the 
route can be self-sustaining and does not require a subsidy when served 
by a single carrier. Based on the proposals received, the Secretary 
will, in consultation with the Governor of American Samoa, select one 
carrier to provide the service. The award of the air service route will 
be for a period not to exceed 2 years, and may be renewed.
  American Samoa's economy has been hampered and our people have been 
inconvenienced for too long because of the lack of adequate air service 
to connect us to the national air transport system. I believe that this 
legislation will inject competition into this limited market, and I 
look forward to seeing this bill enacted into law.

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