2 airlines oppose NMI’s air expansion petition

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Posted on Apr 20 2009
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Two U.S. air carriers—Delta Airlines and United Airlines—have opposed the CNMI’s petition with the U.S. Department of Transportation to grant Japanese and Chinese airlines unilateral access to the CNMI.

Both carriers did not object to eliminating restrictions for Australia airlines but did object to access for Chinese and Japanese carriers.

“The right to serve points in the CNMI, particularly Saipan, is of sufficient value to carriers of both countries that their respective governments negotiated specific terms regarding service to the Commonwealth,” United Airlines stated.

However, the CNMI government in its reply motion said neither airline took into consideration the Covenant agreement between the Northern Marianas and the U.S. government, specifically: “[t]he Government of the United States will give sympathetic consideration to the views of the Government of the Northern Mariana Islands on international matters directly affecting the Northern Mariana Islands,” acting Attorney General Gregory Baka wrote, adding economic obligations for the CNMI were also not considered.

Baka noted that United has not served the CNMI since its Osaka-Saipan service ran from approximately 1994 to 1996.

The Covenant Sections 603(d), 701, and 904 make the CNMI’s case stronger than other similar locations and situations, Baka said.

“Yet the essential point is that this is not a reward for foreign carriers, but an incentive to serve geographically-disadvantaged isolated communities lacking external land-based transportation,” he added.

In the original petition, Baka noted that compared to Guam, the CNMI faces more challenging economic circumstances due to the loss of the garment industry; lack of a U.S. military presence; lower level air service; a greater loss of tourism revenues; and infrastructure shortfalls.

Baka also pointed out the Covenant agreement between the CNMI and the United States requires the U.S to encourage foreign countries to treat the Commonwealth as a developing country, with respect to exports and trade.

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