Of regional issues in Micronesia

It is good to dream of regional approaches to matters of mutual concerns affecting all island governments in the Micronesian region. However, we sometime employ the cart before the bull syndrome by offering political solutions to substantive economic matters or simply allow issues to wither in inactivity “after all is said and done”.

For instance, there is a resoluton before the Association of Pacific Islands Legislatures to establish a regional airline. Is APIL thinking strictly endorsement of an airline or financing a regional carrier with contributions from each island government? Has any international airline expressed an interest in this regard (amid the Asian Crisis) even willing to absorb financial losses to the tune of more than $3 million annually?

Even if APIL successfully endorses another airline other than Continental, this decision involves a process with a certain federal agency, an issue that is negotiated on a bilateral basis. We may submit APIL’s resolution but what difference would it make in pushing for a change of an earlier agreement with Continental Airlines?
This is what we refer to as a political solution to an economic issue that involves bottomline figures that are critically reviewed at the end of each month. Our ego may be bruised but that doesn’t mean we can brave arrogance over the welfare of the traveling public or years ofsacrifice by Continental.

We’re not out to rally sympathetic support for Contnental Airlines. But it must be understood that Continental isn’t immuned to the ravages of the Asian Crisis or any other airline serving the CNMI from Asian destinations. It is a business firm that soars when its revenue take an upward spiral, takes a low flight when revenue decreases. It is strictly business.

It is unfortunate that the entire region is adversely affected by the Asian Crisis forcing Continental Airlines and other commuter airlines here to downsize business operations. Such a decision is the very nature of a business operation–work the clock to make profits but must begin downsizing when the market can no longer support daily flights on certain routes. And not when the revenue loss involves some $3 million, annually. Definitely, management had to make a business decision and the decision is to downsize–reduction in flights–out of Japan.

The State of Hawaii saw the closure of some 5,000-plus tourist related businesses over the last two years. The NMI, some 2,000-plus resulting in the plummet of revenue generation so triggered by assaults from the Asian Crisis. Certainly, we appreciate the contributons of Japan Airlines and Northwest, but neither is exempt from the regional crisis that has sent most economies reeling for some form of restructuring in order to stay afloat.

We hope that this and other regional issues are debated based strictly on facts and economic conditions. We must not forget the pioneering efforts of Continental Airlines which started in the region since 1968. Our only alternative is to buckle down and get our acts together between the various airlines, hotels and travel agencies to formulate competitive tour packages equal or lower than what is being offered by other competitive destinations in Asia and the Pacific. It is the more realistic approach to surviving the current crisis.