CPA lowers cost of servicing passengers

The Commonwealth Ports Authority spent an average of $14.79 per enplaned passenger in the first 11 months of the fiscal year, posting an 8 percent cost reduction as compared with the same period in FY 2003.

The cost per enplaned passenger, or CEP, refers to the amount spent by the Commonwealth Ports Authority to service each passenger departing from any of the CNMI’s three airports. It is calculated by dividing the CPA airport division’s total operating expenses by the number of departing passengers.

Based on CPA data, a total of 620,101 passengers departed from CNMI airports between October 2003 to August 2004. The FY 2004 figure surpassed enplanement figures for the same period since 2000, which was before the 9/11 terrorist attacks and the subsequent Iraq war and SARS outbreak caused an extremely negative impact on the travel industry.

During the first 11 months of FY 2004, CPA had total operating expenses amounting $9.17 million. CPA officials have described the amount as relatively low, considering that it included costs of repair work on Saipan International Airport’s air-conditioning system and payment of compensation for retiring employees.

About 90 percent, or 556,642, of the enplaned passengers departed from the Saipan International Airport, where all international flights—except for some charter flights—are being operated.

The Saipan airport had operating costs of $7.52 million. This resulted in an average enplanement cost of $13.50 per passenger, which is 6 percent lower when compared with that in the same period last year.

Rota and Tinian airports also posted declines in their enplanement costs due to lowered operating costs and increased passenger traffic, respectively.

During the first 11 months of FY 2004, Rota airport serviced 27,691 passengers. Meanwhile, the airport’s expenses totaled only $916,187, which is 6 percent less than its expenses in the same period last year.

This translated to a CEP of $33.09—more than double the enplanement cost on Saipan, but 5 percent lower as compared with the first 11 months of 2003.

For its part, Tinian airport spent $20.68 to enplane each passenger from October 2003 to August 2004, posting an average saving of $4.29 per passenger when compared with the enplanement cost during the same period last year.

The cost reduction can be attributed to the 23.5-percent increase in passenger traffic at the Tinian airport.

CPA statistics showed that a total of 35,767 passengers departed from Tinian since the start of the fiscal year, a significant increase from the 28,968 passengers registered between Oct. 2002 and August 2003.

Meanwhile, CPA disbursed $739,821 for personnel, maintenance, and other expenses for the operation of Tinian airport.