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House urges Northwest to reconsider flight cutbacks
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Posted on Feb 20 2009
The House of Representatives has passed a resolution requesting Northwest Airlines to reconsider its decision to reduce the number of flights from Japan to Saipan.
Under H.R. 16-76, the House of Representatives said it would work to create a dialogue between the airlines, the Marianas Visitors Authority, and the Commonwealth Ports Authority “…to find a compromise and feasible solution to prevent further reduction of flights and seats from Japan.”
Northwest Airlines recently announced it would cease its daytime flights from Osaka and cease its nighttime flights from Narita at the end of May. Daytime services from Narita will also see a reduction of 116 seats.
Based on a 75 percent load factor, the CNMI stands to lose $51 million and $168 million in direct and indirect opportunity for fiscal year 2009, the resolution stated. If unable to recover the loss of the air seats, the Commonwealth stands to lose an annual $108 million and $356 million in direct and indirect revenue.
Moreover, with such a decline the CNMI stands to lose 1,383 public and 1,546 private jobs “creating detrimental and extremely devastating effects to the already frail economy of the CNMI.”
And with the tourism market standing to lose the Chinese and Russian markets due to the new visa waiver regulations requiring tourists from those countries to enter with a visa, the Japanese market is more important to the Commonwealth than ever, the resolution stated.
During the House session this week, other members assured Rep. Tina Sablan that the CNMI government has already begun a dialogue and discussion with the airline. Sablan said she felt the resolution was asking the airline to feel sorry for the CNMI.
“What are we going to offer? Are we just asking them to feel sorry for us?” she said.
Rep. Diego Benavente, who authored the resolution, said the House is limited to what it can offer, but wanted to show support for the dialogue and negotiations.
Once Sablan was assured the resolution was meant to show support for a dialogue, she voted in favor of the measure.
“I am absolutely supportive of trying to work out a solution that will meet the needs of both the airline and the community,” she said yesterday.
