Star Marianas rescinds termination notice

Gov. Arnold I. Palacios effectively intervened in the dispute between Star Marianas Air, Inc. and the Commonwealth Ports Authority with Star Marianas officially rescinding its notice to terminate inter-island flight service.

Yesterday, Star Marianas announced that it has rescinded its previous notice to discontinue scheduled air service, which was set to take effect on Oct. 15, 2024.

According to Star Marianas board chair Robert Christian, the decision comes after a constructive meeting held on Aug. 26 with Palacios, Lt. Gov. David M. Apatang, and their legal counsel.

“During the meeting, Gov. Palacios and his team demonstrated a deep understanding of the issues contributing to the long-standing dispute between STAR Marianas Air and the Commonwealth Ports Authority. The productive dialogue and the governor’s personal commitment to resolving these critical issues have significantly increased Star Marianas Air’s confidence in achieving a fair and sustainable solution at the local level. As a direct result of our meeting with Gov. Palacios, we have decided to continue our scheduled air services,” he said.

Christian added that Star Marianas is optimistic about the future development of the CNMI’s economy, particularly as inter-island transportation becomes more stable.

“We are hopeful that a constructive relationship between the CPA and its aeronautical users will be instrumental in attracting more airlines to utilize the airports in the CNMI, thereby expanding the local economy,” he said.

Robert Christian further states that Star Marianas Air remains committed to providing essential air services to the communities in the Northern Mariana Islands and Guam and looks forward to working closely with the Governor’s Office to ensure the continued success and growth of the CNMI

Saipan Tribune recached out to Star Marianas president Shaun Christian regarding the meeting and whether a resolve was reached between Star Marianas and CPA.

However, Shaun clarified that the meeting was only with the CNMI administration, but Palacios assured he would facilitate a meeting with CPA.

Last month, Star Marianas issued a letter to CNMI leaders informing them of its intent to cease its scheduled flight service for the islands of Saipan, Tinian, and Rota by October should no resolution is reached between Star Marianas and CPA regarding their long-standing battle over airport fees.

“Star Marianas Air, Inc. hereby provides notice of its intent to terminate all scheduled air service to/from the airports in Saipan (PGSN), Tinian (PGWT), and Rota (PGRO), effective Oct. 15, 2024, if a resolution to the current fee setting dispute with the Commonwealth Ports Authority (CPA) cannot be found. This difficult decision is driven primarily by the unsustainable airport fee structure imposed by the CPA, which renders continued service economically unviable,” the letter said.

Star Marianas, in its letter, urged the CNMI leadership to engage with the CPA and facilitate a dialogue to establish a transparent, equitable, and sustainable fee structure that ensures the continuation of vital air service to the community.

“We believe that immediate intervention is necessary to address this issue and ensure that our services can continue without disruption. We are prepared to work collaboratively to find a resolution that benefits all parties involved. Thank you for your attention to this critical matter,” it said.

CPA, in a previous board meeting, expressed that it is open to some sort of agreement with Star Marianas be it through an installment plan, or through discounts.

However, CPA remains adamant on collecting past due fees stating that Star Marianas owes the agency money for use of the Francisco C. Ada-Saipan International Airport.