Continental cuts Saipan-Taiwan route

Barely prepared for the looming pullout of Japan Airlines, the Northern Marianas’ tourism industry is facing yet another hurdle—the termination of Continental Micronesia’s nonstop service between Saipan and Taiwan.

Continental announced on Friday that it would stop flying between Guam and Taipei, which included a stop on Saipan, effective Oct. 31, 2005. The termination date marks one year since the Saipan stop was introduced.

Continental said that a number of factors contributed to its decision to terminate the flight, citing the increasing fuel costs, declining fares, and weak market demand.

“The leisure market from Taiwan to Micronesia struggled to produce sufficient customers to justify continued service. Skyrocketing fuel costs severely impacted the viability of this marginally performing market. Like other airlines in the region, the increasing fuel costs have forced Continental Micronesia to reassess markets for viability in current circumstances,” the airline said in a statement.

Continental Micronesia president and chief executive officer Mark A. Erwin added, “ In spite of our efforts to promote the destinations of Guam and Saipan to Taiwanese visitors, this route performed poorly for us.”

Lynn Knight, chairwoman of the Hotel Association of the Northern Mariana Islands, said Continental’s decision was unfortunate.

She noted that, with JAL pulling out from the Northern Marianas, the local industry needed to develop tourism markets other than Japan. “Unfortunately, we did not have more time to do that. But we respect each other’s decisions in the industry,” Knight said.

Continental began the Guam-Taipei service in 1990 and currently operates three flights weekly.

On Nov. 3, 2004, the airline added the Saipan stop, which is twice a week. This move allowed Taiwanese travelers to access the Northern Marianas without having to comply with a federal immigration regulation that required certain nationalities to present a U.S. visa when entering or even transiting through the continental United States, Hawaii, Alaska, and U.S. territories including Guam.

However, tourist arrivals from Taiwan to the CNMI prove the direct service’s lackluster performance during the past 10 months it was in operation.

While Taiwan arrivals posted percentage growths ranging from 252 percent to 1,087 percent between November 2004 and August 2005, these increases actually represent an average of 210 additional visitors.