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CPA net income rises 15 percent
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Posted on Sep 15 2005
The Commonwealth airports’ net income grew by 15 percent in the first 10 months of fiscal year 2005 due mainly to employee compensation cuts.
The Commonwealth Ports Authority’s latest financial report showed that the airport division had a total net income of $2.63 million for the period between October 2004 and July 2005. This represents a 15 percent increase from the Saipan, Tinian, and Rota airports’ combined net income of $2.28 million for the same period last year.
Of the airport division’s net income, $1.23 million will be used to pay debts incurred for airport improvement projects, while the remaining $1.4 million is being reserved to maintain bond liquidity.
From October 2004 to July 2005, the CNMI’s aviation revenues totaled $7.06 million. The 3-percent growth in aviation revenues resulted from last October’s termination of an airline incentive program. Under this program, airlines received discounts on airport fees if they brought in more than their average number of passengers to the Northern Marianas.
However, these savings were easily offset by a 7-percent decline, amounting to $271,869, in non-aviation revenues. Rental income, concession fees, and parking fees, reached only $3.56 million in the first 10 months of FY 2005.
Overall, the CNMI airports generated total operating revenues of $10.62 million for the first 10 months of the current fiscal year, a 1-percent decline compared with the same period last year.
Meanwhile, cost-cutting measures implemented by CPA resulted in a reduction of $434,103 in airport operational expenses.
From October 2004 to the end of July 2005, CPA spent $8 million to run the three CNMI airports, registering a 5-percent cut in total expenses.
Savings on personnel expenses accounted for about three-fourths of the cut, with salaries and benefits being reduced by $320,701.
CPA also saved $113,402 in maintenance and other expenses.
