CNMI, Palau move closer to creation of regional airline

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Posted on Jul 01 1999
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CNMI, Palau and Air Nauru officials yesterday started exploring the possibility of providing direct service between Saipan-Manila and Palau in a move to efficiently ferry passengers to these destinations.

Palau Sen. Santos Olikong said this signals the beginning of a joint effort to forge partnership with another airline that can service the Micronesian region and offer affordable rates. The board chairman of Air Nauru and the airline’s legal counsel attended the talks.

Olikong, who initiated the meeting, clarified that it was not an attempt to replace Continental Micronesia but merely to complement its service since it is not providing direct flight to these areas. Passengers going to Palau and Manila would have to wait for several hours in Guam just to catch a connecting flight.

“You cannot replace Continental. We are not even suggesting that we replace it. We are not talking about a regional airline although it may grow into that,” he said.

Aviation Task Force chairman J. M. Guerrero emphasized the need for direct service in these routes especially for people who need immediate medical treatment. Two years ago, Continental Micronesia was flying direct Saipan-Manila until the airline decided to drop the route.

“It looks promising but it is still a long way to go,” said Guerrero.

The Micronesian region has been severely battered by the effects of Asia’s financial crisis with the decline of tourist arrivals. In the CNMI alone, the reduction in flights by Continental Micronesia from various destinations in Japan contributed to the difficulty in enticing tourists to come here.

Although the Association of Pacific Island Legislators have broached the idea of creating a regional airline, Olikong said all leaders in the Pacific Rim would have to work together to realize such plan.

The experience with Continental Micronesia has taught Pacific Islanders not to depend on one airline alone, he said. “This region has been good to Continental and we were hoping to work together. We cannot go on for the next 10 to 15 years depending on an airline that suddenly goes away when the problem comes up.”

The possibility of setting up a regional airline amid the continuous reduction in service of Continental Micronesia was discussed last month during the annual membership meeting of the APIL in Guam.

In addition, the leaders would like to address the problem of how to extend better and more affordable air passenger and cargo service among Micronesian nations especially in light of Continental Micronesia’s current highly unaffordable tariffs.

A technical group may be created to gather the needed information by Air Nauru in analyzing such proposal. Officials may later on visit Palau and the Philippines to formally meet with the leaders there and hold discussions on the plan to provide air service.

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