Legislators praise CPA’s fee cut

Two members of the House of Representatives yesterday welcomed a move by the Commonwealth Ports Authority to provide a 50 percent cut in departure and arrival fees for all airlines servicing the Northern Marianas, saying this is a step to spur the tourism industry.

Rep. David M. Apatang, chair of the House committee on Public Utilities, Transportation and Communications, said the measure is the first in a package of incentives that the government hopes to offer as to the airlines.

The representative, who is also a member of the Aviation Task Force, also threw his support behind the cash-strapped ports authority in the efforts to increase traffic and entice more tourists into the island despite its potential impact on CPA revenues.

“This is a very good idea,” Apatang told in an interview. “It will really help the airline industry which has been asking us for some relief in view of the economic crisis were are currently facing.”

Under the plan, CPA will grant the reduced rate beginning May 1 until February next year to carriers that can provide an additional 15 percent increase in seating capacity.

Although the ports authority has thumbed down request by the House and the task force to slash landing fees by half, Rep. Manuel A. Tenorio underscored the impact of the cut on arrival and departure fees to the airlines trying to maintain its service to the CNMI.

“The whole idea is to try to encourage them to come in and try to bring in more passengers because the breaks given to these people are little as opposed to the overall benefits that (the government) would get from passengers coming in,” he said in a separate interview.

“The ripple effect on the economy is a lot of bigger,” Tenorio explained, adding that savings as a result of the reduction would assist the carriers in their promotion of the island as a tourist destination.

Tenorio earlier has sponsored a resolution prodding CPA to decrease the landing fees, noting that it would allow the carriers to use larger aircraft, and thus seat more passengers.

“We certainly welcome (the CPA decision) and of course we will see what we will get from it,” he pointed out. “It all depends on the airlines, but the whole idea is to encourage them to carry more passengers and increase their flight frequency if these breaks would save them some money.”

The Northern Marianas is reeling from the worst crisis to hit the island in 50 years spawned by the prolonged recession in Asia, its main source of tourists and investments.

Hotels, airlines and other tourist-related businesses have asked the government for tax breaks and other incentives to help them cope with the economic downturn.