REGIONAL AIRLINE PLAN IN HOT AIR Flying without wings

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Posted on Oct 11 1999
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Leaders from different islands in the region appear to have clipped the wings of an ambitious plan to create a regional airline as they continue to debate whether Continental Micronesia suits the role or that another air carrier is needed to service this part of the Pacific.

One side of the coin contends an advisory council composed of various legislatures in the region and Continental in a roundtable discussion will deal with the problems on airline service, providing a venue to air gripes and probably reach a consensus at the conclusion of the meeting.

On the other hand, some believe the creation of a new and true regional carrier is the only solution to constant finger-pointing that has characterized relations between the islands and Continental — by far, the largest airline servicing Western Pacific — over the last two years.

With the controversy swirling around it, the plan to entice other carriers, like Air Nauru, to service the region and eventually be designated such a distinction seems to have vanished, so to speak, in thin air.

During the general assembly of the Association of Pacific Islands Legislatures or APIL on Guam last June, two resolutions promoting these ideas were presented to the body for immediate action.

But the annual meeting, which grouped together lawmakers from American Samoa, CNMI, Guam, Marshalls, Palau and the Federated States of Chuuk, Kosrae, Pohnpei and Yap, failed to bridge differences.

CNMI’s delegation, led by Senate Floor Leader Pete P. Reyes, lobbied hard to defer voting on the proposal to set up the advisory council, which was presented to APIL by Continental officials.

According to Reyes, this is just unacceptable to most island governments as the Guam-based carrier has practically ignored protests against its decision to cut back nonstop service between the islands and key cities in Asia where most of their tourists come from.

“We’ve had it with Continental. This kind of nonsense has got to stop,” the senator said. “They can’t just come up to you, slap you in the face and say ‘I love you.'”

Reyes said its “peace offering” of an advisory council with the airline on the helm should have been done a long time ago when CNMI and other Micronesian governments were complaining against the flight reduction which they said impacted heavily on their tourism industry.

“This is a ploy to divert attention on the issue of regional airline… Micronesians have suffered enough and now they are speaking out,” said the senator.

Continental Micronesia has resisted perception that it has been the villain in this interplay of bruised egos and drastic actions during the past two years in what practically stemmed from the Asian economic flu.

Walter Dias, staff to the vice president for sales and marketing of Continental Micronesia, defended the proposal as a means to foster cooperation between leaders in the region and the company.

It seeks to establish regular gathering every quarter or every six months for both parties to sit down and discuss the situation. Dias said the airline will then research solutions to the problems and work with the council to fix them.

Touting the “strong” marketing arm of the carrier, whose parent company is the Houston-based Continental Airlines, in both the mainland and Japan, Dias said they are more than ready to meet the needs of the region.

“If you create a regional airline that just flies around and doesn’t really know what they are doing because they don’t have any power in the markets, then how are they going to help you bring more customers to your businesses,” he asked.

“We can do it. We do it everyday,” said Dias, adding the company has several plans ahead, including additional flights and upgrade of existing jets, to ensure efficient service and more passenger seats between the islands and Asian cities.

The U.S. carrier has been servicing Micronesian islands for the last 30 years, with flights from Hawaii and other cities on the mainland as well as Tokyo, Seoul, Manila, Hong Kong and other Asian capitals.

But the economic recession in Asia forced Continental to drop some of its flights and increase fares in major routes in order to offset company losses brought about by low passenger load.

Leaders of island entities in the region have charged that airline executives have failed to inform their government of the decision, catching them off-guard with no alternative carrier to serve them.

The former APIL president, Guam Sen. Carlotta Leon Guerrero, maintained the proposed advisory council she helped sponsor would have provided the best forum for Micronesian governments to get involved with Continental’s decision-making on issues such as scheduling of routes.

“It is my response in trying to keep that kind of relationship on track,” she said. “The CNMI says that ever since UMDA sold its shares on Continental, the airline doesn’t care anymore about the islands. This is like trying to create something equivalent to UMDA so that islanders would have a voice.”

The Guam lawmaker, however, is not upbeat about the new regional airline, saying Micronesian leaders will achieve more by supporting Continental and Air Nauru which have serviced the region for years.

“At this stage and at this time, it’s a doable goal. It is something we can accomplish to try to put in place a kind of support system that encourages Air Nauru to fly one more plane and add more frequencies,” said Guerrero.

In the meantime, passengers from Saipan trying to catch the earliest connecting flights to Manila or Tokyo will just have to wait a few more hours in Guam’s splendid A.B. Won Pat International Airport before they can board Continental’s new Boeing 737.

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