Saipan airport inbound traffic down 24% By ALDWIN R. FAJARDO

Inbound traffic to the Saipan International Airport dropped by 24 percent in November last year compared with landing statistics during the same period in 1998, apparently as a result of Continental Micronesia’s decision to cut back its CNMI operations.

A financial report prepared by the Commonwealth Ports Authority disclosed a sharp decline in the number of inbound international flights at the Saipan airport, to only 260 last year from 342 in November 1998.

However, deplanement increased by 25 percent from 30,520 two years ago to 38,209 last year, while enplanement grew by eight percent from 40,329 to 43,450.

During the first two months of the fiscal year 2000, international enplanement and deplanement exceeded the previous level by 14 percent and 31 percent, respectively, although landing tally was still behind by 24 percent.

According to the CPA report, Japan Airlines, among the four major carriers operating in the Northern Marianas, cornered the biggest bulk of international enplanement during the same period.

Due to the increase in enplanement and deplanement statistics, CPA’s aviation division registered a significant 34 percent increase in operating revenues from $655,632 to $879,095 November last year.

Ports Authority Board Chairman Roman S. Palacios noted that growth in the international enplanement and deplanement figures was the main contributing factor in the increase in agency’s operating revenues.

“We are beginning to see the relationship between the number of enplaned passengers and the revenues from the prime concessionaire and restaurant in the main terminal,” said CPA finance committee Chair Roman Tudela.

The financial report also revealed that income from the restaurant and prime concessionaire has been exceeding the fiscal year 1999 levels for the same period.

“The departing international tourists are spending more at the DFS shop than last year. The appreciation of the Japanese yen to the U.S. dollar is taking its course,” the report said.

At the same time, CPA’s airport operation incurred a net loss of $342,764 in November 1999, compared with the previous year’s tally. The figure manifests an improvement in the ports authority’s net loss by 19 percent.

In November 1998, CPA incurred $418,735 in total losses, which is higher by $75,971 from last year’s records.

The aviation division has achieved 2.60 debt coverage ratio from the required debt coverage of 1.25, higher by 35 percent. This means that CPA generated an additional $197,041 from its operating activities.

By vigorously pursuing its austerity programs this year and beyond, the Ports Authority expected a dramatic reduction in expenses in FY 1999 and minimize expense growth from there on.