IT looks like 2007 is off to a very good start for Guam. The petition for air cargo exemption for Guam, which was filed by Guam International Airport Authority back in February of last year, has been approved by the U.S. Department of Transportation.
While Congresswoman Bordallo lacked foresight and vision and was firmly set against petitioning DOT for expanded rights last year, Sen. Jesse Lujan played a singular and instrumental role in pressing the federal government for cabotage here on Guam, and it looks like all his hard work is beginning to pay off.
Now that air cargo exemption is the standard, Guam’s economy stands to reap considerable benefits. It is no secret that increased competition, whether foreign or domestic, is a good thing for our island — especially in the realms of transportation and commerce. It has been exceedingly expensive to ship items to or from our island due to its remote location and relatively small market demands. And these are the very reasons why DOT has accorded us cabotage for air cargo. With foreign airlines competing for cargo transport on our island, prices will invariably go down and quality of service will go up — that is the beauty of capitalism!
Certainly the air cargo exemption is a tremendous boon and augurs a favorable boost to our economy and its business community, but I agree with Senator Lujan that we are only half way there. DOT has recognized the economic disadvantages that Guam bears due to its isolation and locality and has thus accorded us rights similar to those enjoyed by Alaska and our neighbor Hawaii. But the economic disadvantages sustained by Guam that are cited by DOT are not just confined to air cargo — they also impact passenger transport.
Judging by the extremely high airfare prices charged to fly between the mainland and Guam, it is apparent that cabotage rights should be extended to passenger transport as well. Senator Lujan has insisted all along that Guam is deserving of full cabotage rights. He is right, and DOT, by granting us air cargo exemption, has conceded this. But I have a strong suspicion that where airlines like Continental Micronesia and Northwest were amenable to DOT’s issuance of air cargo exemption, they will not be so receptive to expanding cabotage to include passenger transport. These airlines have a secure and captive market here on Guam with no competition to contend with. Authorization allowing and inviting foreign carriers to vie with them for customers is not something they are going to accept willingly. Senator Lujan has a tough fight on his hands in extending cabotage to include passengers, let’s do what we can to support his efforts and make flying to the mainland affordable for us all!

NESTOR GOGUE
Agat, Guam