CPA welcomes Northwest aircraft upgrade

Commonwealth Ports Authority Board Chairman Roman S. Palacios yesterday expressed hope that the CNMI’s market share in Japan would improve with Northwest Airlines’ decision to upgrade its current aircraft from DC10 to B747.

Northwest said it will change its aircraft effective October 1, 1999 between Guam and Tokyo, Saipan and Tokyo, a move that is expected to boost arrivals by 32 percent with additional 630 seats per week each for Guam and Saipan.

The fleet upgrade is the result of the significant decision made by Guam and CNMI governments and airport authorities to reduce aircraft landing fees in both stations.

“We are very pleased with the cooperation received from the Governments of Guam and the CNMI, the Guam International Airport Authority and the Commonwealth Ports Authority regarding the reduction of the landing fees,” said Martin Gross, general manager for the Philippines and Micronesia.

CPA has granted a 50 percent cut in departure and arrival fees to all signatory airlines servicing the CNMI to entice them into increasing traffic in order to help the ailing tourism economy.

The incentive, which took effect on May 1, 1999, will be extended to carriers that can provide additional 15 percent increase in the total number of passengers that they bring into the CNMI.

A board meeting last month agreed to extend to seven months the incentives granted to Northwest provided that the airline company meets the following:

• change of aircraft from DC10 to B747 anytime between now until January 2000;

• submission of the traffic forecast from the current period to October 2000; and

• provided that extension of such incentive does not jeopardize the airport’s debt service.

The ports authority is scheduled to implement new airport rates in March 2000 as it is under pressure to generate the much-needed revenue to meet debt service coverage.

“Northwest is committed to Guam and the CNMI, especially at a time when the island economies are in need of catalyst. The upgrade to a 747 provides opportunities of increased tourist spending and tax revenues, which ultimately benefit our local residents,” Gross said.

Northwest Airlines, the world’s fourth largest airline, flies daily between Guam and Saipan to Tokyo, Japan with connecting flights to nine U.S. gateways and over 250 North American destinations.