MVA says airlines should take advantage of incentives

Marianas Visitors Authority board chairman Dave M. Sablan yesterday urged airline companies to take advantage of the incentives offered by the Commonwealth Ports Authority.

“I appreciate what they have given us because they have not given the industry anything in the past. The fact they have conceived something for the airline is a big plus for the industry,” said Sablan.

The CPA board approved a 50 percent cut in departure and arrival fees effective May 1, 1999 until February 29, 2000 to airlines that can provide an additional 15 percent increase in the average number of passengers that they bring in to the CNMI. CPA Executive Director Carlos H. Salas has met with the various airlines explaining to them about the board’s decision to provide incentives to boost traffic.

Sablan noted that Japan Airlines will greatly benefit from the incentive because it has been bringing in additional number of passengers by charter flights. He expressed hope that the benefits which the airline would receive would eventually trickle down to the travelers since they are main source of tourism revenue.

During Japan’s Golden Week Celebration alone, JAL will bring in a total of seven charter flights during the holiday season — one from Osaka, three each from Fukuoka and Nagoya.

However, he is hoping that Continental Micronesia would also make use of the incentive by increasing the number of flights it has earlier reduced due to the low demand.

“We are saddened by Continental’s move to continue reducing flights to Saipan but we cannot do anything about it because it is a business decision,” said Sablan.

The ports authority, however, did not grant a 50 percent reduction in landing fees and provide incentive to airlines that will service new routes. According to CPA board members, it is difficult for them to reduce the landing fee for all signatory airlines because of the different types aircraft being used in servicing the CNMI.

Beginning March 1, 2000, the ports authority will implement the new rates for the airport which was earlier suspended in a move to help the island’s main source of revenue recover from the current slump brought about by Asia’s financial crisis.

This means that passenger facility charge shall increase by 39 percent from $5.79 to $8.00 per passenger and the landing fee shall jump by 65 percent hike from $.85 to $1.40 per 1,000 pounds.