Palacios supports cabotage exemption waiver

“I support anything that is going to improve air connectivity in the Marianas region.”

These were the words of Gov. Arnold I. Palacios when asked whether he supports efforts made to get a cabotage exemption waiver for the Marianas.

Last month, in an attempt to lower airfare costs in the Marianas, Delegate James Moylan (R-Guam) and Delegate Gregorio “Kilili” C. Sablan (D-Saipan) led the introduction of H.R. 8786, a piece of legislation that would provide a special cabotage exemption for foreign carriers seeking to fly from Guam to another U.S. port.

This would allow for competition for certain routes, which in turn should lead to more competitive pricing which ultimately benefits the consumers.

Senate President Edith DeLeon Guerrero (D-Saipan) and House Speaker Edmund S. Villagomez (Ind-Saipan), for their part, have also written to the Mariana Islands Legislature Association urging the adoption of a resolution pushing for a regional cabotage exemption.

In an interview with Palacios, he said he supports the intent behind a regional cabotage exemption.

“Yes, of course, [I support] anything that is going to improve air connectivity to the Commonwealth, Guam, and the region. But we have to be very realistic like Congressman Moylan and Kilili said, it’s a heavy lift and it’s going to be a long term [plan],” he said.

Palacios said for the meantime, however, dialogue should continue between the Marianas and United Airlines to lower the cost of travel between the CNMI and Guam.

“For the short term, we must continue our dialogue with United to see if they can help. I’ve asked them to please, make this site navigable for everybody. That’s the difficulty, you must be tech savvy to navigate [it]. But it should be available to everybody, whether you pay online or at the counter,” Palacios said.

Under current federal law, a foreign carrier can’t transport passengers or cargo from one U.S. port to another.

Currently, United Airlines is the only domestic carrier that provides routes between Guam and the CNMI, as well as Guam and Hawaii.

If H.R 8786 were to become law, a foreign carrier could provide services between Guam and the CNMI, Guam and Hawaii, or even consider a route between Guam and one of the contiguous states.

“This is an issue which has been building, and with all additional concerns being raised recently, from United’s pet policy to and from Guam, and the ending of the native bird repatriation program, along with $500 airfare costs between Guam and Saipan, something needs to be done,” stated Moylan.

“This is going to be a massive undertaking, but we are ready. Just as the unions protect the domestic ships industry, we will face solid challenges from many entities, particularly from the incumbent carrier. This is also an issue which will be a marathon and not a sprint. In other words, it needs to build some momentum and will take time. We have and will continue to build an education campaign on why H.R. 8786 is so important for the Marianas,” added Moylan.

Based on research of the average costs of domestic travel, leaving from the Guam International Airport to any airport across the nation is considered the most expensive route.

During Quality-of-Life Panel discussions, which are part of the House Armed Services Committee, and which seek ways to improve the quality of life for servicemembers living away from home, the top concern for those residing in Guam is the cost of airfare.

“Servicemembers, along with island residents, face challenges trying to attend weddings, funerals, or graduations in the mainland. The same goes with former residents wanting to fly back. Competition is the only way we will get the costs to reduce, and that is the intent of this legislation,” Moylan.

“I also want to emphasize that this measure is in no way a testament to the efforts of United Airlines Guam management, staff, and flight crew. They continue to go above and beyond by being a community partner while providing exemplary service both in flight and on the ground and I thank them for their hard work. This issue is about decisions made on a corporate level in Chicago,” added Moylan.

In their request to MILA, the CNMI legislature said if U.S. Congress will not authorize essential air service for the CNMI, then it’s imperative that the U.S. should enact legislation to authorize a regional exemption to the cabotage laws or administrative waiver to allow foreign air carriers to fly between the CNMI and Guam.

Arnold I. Palacios