NMI’s loss is Marshalls’ gain

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Posted on Sep 13 2005
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As the CNMI grieves over the impending economic losses in the wake of Japan Airlines’ pullout from the Commonwealth in October this year, the Republic of Marshall Islands is upbeat over JAL’s reported plan to fly weekly to the atolls beginning early next year.

Recent Agence France Presse reports said that the Pacific nation hopes to kick-start “its nearly non-existent tourist industry next year” with JAL’s plan to start charter flights to the capital, Majuro.

JAL reportedly sent a six-member logistics support team to Majuro late last month, spending two days there to conduct an onsite inspection for the launching of direct charter flights between the capital and Japan. JAL reportedly aims to bring about 200 tourists to Majuro a week.

At present, Marshall Islands reportedly receives about 7,000 to 8,000 visitors a year, but only about 2,000 of them are tourists.

Accounts said that JAL would use a Boeing 767 to carry 237 passengers, which is bigger than the Boeing 737s being used by Continental and Air Nauru, the two other international airlines that currently fly to Majuro.

When asked, CNMI business and government officials expressed disbelief over the matter.

Saipan Chamber of Commerce president Alex Sablan, for instance, said he would not comment yet unless he hears about it directly from JAL. “No comment. I don’t think that’s substantiated,” said Sablan.

For his part, Marianas Visitors Authority board chair David Sablan described the news as “quite interesting.”

“I can only say, ‘All the power’ to the Republic of Marshall Islands. I hope they maintain a long working relations with JAL. Looks like our loss is Marshall’s gain. I wish them all the best,” said MVA’s Sablan.

“JAL must have seen something more profitable in the Marshalls than they did here in the CNMI,” he added.

Press secretary Peter A. Callaghan said that JAL “may have figured that they can get more money from passengers flying to the Marshalls.”

“I can’t really comment. Whether it would improve their seating capacity, I have no idea. I suppose they studied it,” he said.

When reached, Saipan-based JAL manager Kumio Tomita denied any knowledge of the Marshall’s plan.

“This information has not reached me,” he said.

JAL surprised the CNMI in May this year when it notified the government that it would pull out from the Marianas by October this year.

In July, JAL formally announced the departure but instead of pulling out altogether by Oct. 4, it said that it would offer a few more flights throughout the month (October).

Alarmed by the news, CNMI government and tourism officials led delegations to Japan on at least two occasions, practically begging the airline to stay or to desist from a 100-percent pullout.

During their meetings, JAL reportedly said that their decision was a corporate decision since they are losing money. Reports also said that JAL is being penalized for several safety violations.

The CNMI said JAL’s departure would mean a minimum loss of $80 million to a high of over $700 million a year.

JAL brings in over 150,000 tourists to the CNMI a year.

Meantime, in Majuro, reports said that an initial JAL flight, which would bring travel agents and media, is tentatively set for next month.

The Marshall Islands, which has a free association with the United States, takes pride in its untouched beaches in mostly remote and uninhabited islands, as well as its fishing and scuba diving opportunities.

Bikini and Rongelap atolls were abandoned after nuclear tests in the late 1940s and 1950s. U.S. scientists have since declared them safe for short-term visits.

The Marshall Islands reportedly still hosts a U.S. missile testing range on one of its 34 atolls and islands.

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