Continental eyes increased nonstop flights from Japan

Counting on the economic rebound in Asia, Continental Airlines is eyeing the deployment of more nonstop flights between islands in Micronesia and Japan to meet growing demands for airline seats.

Continental Micronesia President Bill Meehan said the carrier had to reduce the number of airline seats deployed between Asian countries and islands in the Marianas due to the corresponding drop in passenger haul.

Speaking before the first annual Tan Holdings Corporation conference dubbed “THC in the New World,” Mr. Meehan pointed out that Continental’s decision was necessitated by concerns on possible losses because fewer Asians traveled overseas in the last three years.

“The frequency of direct flights depends on the availability of slots and other issues. With Japan and Asia’s economic rebound, we’re negotiating with Japan to bring in more flights,” he said.

He explained that Continental has scheduled direct flights out of Tokyo beginning April 1 since Japanese tourists have now returned to overseas trips after taking domestic tour packages due to the yen’s weaker buying power.

Armed with the projected growth on the demand for more air transport services from Japan to the islands, Continental Micronesia is also deploying nonstop flights between Nagoya and Saipan beginning April 1.

The airline company will use its newly-acquired 737-800 aircraft, which can accommodate a maximum of 155 passengers, in the daily Nagoya-Saipan flights.

Continental’s decision to resume the deployment of nonstop flights to and from the island was prompted by the increasing demand from travel customers in Japan, indicated by official figures recorded in recent months.

The region’s largest carrier is hoping to dispatch aircraft with an annual average of 84 percent load factor, which may translate to around 48,000 additional visitors to the Northern Marianas this year.

Deployment of the nonstop daily flights between Nagoya and Saipan represents close to 57,000 airline seats, in addition to the 120,000 passenger slots Continental Micronesia provides to the CNMI through its Guam hub each year.

Mr. Meehan said the Japanese travel market has manifested a stronger rebound, after a two-year slowdown caused by financial upheavals in Asia which weakened the yen’s value compared with the American greenback.

“As we have always indicated, Continental will add capacity to those markets which demonstrate consistently strong demand. We have had, continuous, constructive dialog with the Governor’s office and the Legislature regarding the CNMI market,” he added.

Mr. Meehan expressed confidence a corroborative work with the Marianas Visitors Authority in the proper promotion of the island as a prime tour destination in Japan will spell the success of the Nagoya-Saipan flights.

The airline official is optimistic the resumption of the nonstop flights to the Japanese city will work to the economic advantage of the CNMI, while also strengthening the islands’ position as a prime tour destination in the Japanese market.

The first since it eliminated direct international services to Saipan, Continental Micronesia earlier announced the airline will fly non-stop from Saipan to Osaka four times a week from February 1, 2000 to March 31, 2000.

Although it has practically abandoned nonstop international services to the island, Continental consistently provides the CNMI direct connecting flights from eight Japanese cities, Hong Kong and Taipei which translate to substantial number of visitors to the Northern Marianas.