CPA’s aviation division posts growth

As the tourism economy shows slight improvement with the growth of passenger traffic in international and domestic flights, the Aviation Division of the Commonwealth Ports Authority posted a 28 percent growth in operating revenue for the month of June 2000 compared to the same period the previous year.

The increase in revenue was also due to the airline incentive program, revenue base enhancement and rate hike, according to a financial report made by Dave Demapan, CPA comptroller.

Aviation revenue jumped 40 percent jumped over the level of Fiscal Year 1999 while non-aviation revenue recorded a 12 percent hike.
The aviation revenues which surpassed the same period of FY 1999 are the following: international landing fee by 62 percent, domestic landing fee by 81 percent, incinerator fee by 36 percent, international enplanement fee by 50 percent, domestic enplanement fee by 17 percent, international deplanement fee by 36 percent and fuel flowage fee by 80 percent.

Non-aviation revenues that posted significant growth as well include ground transportation by 21 percent, DFS Concessionaire fee by 44 percent, and advertising by 20 percent.

Due to the implementation of the airlines incentive program, the major carriers serving the CNMI realized total savings of $37,772.

Japan Airlines continue to control the market share on the number of enplanement throughout fiscal year 2000. For the month of June alone, Japan Airlines got 38 percent, followed by Continental Airlines 27 percent, Northwest Airlines 20 percent and Asiana Airlines 15 percent.

Domestic flights, likewise, posted significant growth from the levels of FY 1999 as enplanement increased by 11 percent.

On operating expenses, the Aviation Division incurred a 13 percent hike in operating expenses in June 2000 compared to the same period in 1999 due to the two-step increase given to employees.

In meeting the debt coverage ratio for its $22 million airport bond, the Aviation Division generated 275 percent or an additional $2,048,753 from the operating activities.

Due to the rate hike implemented last year, the Marine Division posted a 21 percent increase in operating revenues for the month of June 2000 compared to the same period of the previous year. This include a 43 percent increase in dockage fee, 6 percent increase in entry fee, and 141 percent jump in embarking passenger fee.

From October-June of Fiscal Year 2000, the Marine Division earned $3.9 million from the operating activities. The garment cargo was the biggest source of income of Saipan Seaport last June with a 14 percent jump.

For its debt coverage ratio requirement, the Marine Division recorded 33 percent jump over the required debt coverage ratio of 1.25 or a $681,911 additional gross revenue.