APIL investigates declining air services in Micronesia

Two airline companies are facing investigation over alleged monopoly of air services in the region as 12 member-states of the Association of Pacific Island Legislatures aired concerns on the declining frequency of flights in Micronesia.

Rep. Dino Jones disclosed yesterday the creation of a five-man task force to look into allegations of monopolistic practices by Continental Micronesia and Air Nauru.

Continental and Air Nauru are the only airline companies currently servicing small island-nations in the Pacific, as well as the Oceania region.

The lack of competition within the airline industry in the region creates a monopolistic environment which may result to airfare increases, as well as service cutbacks, said Chuuk Representative Paulus Konman.

The resolution which was forwarded to the CNMI House of Representatives divulged the depressing reduction of airline services in the Pacific Region. APIL member-states are apprehensive on its overall effect on the economy.

Mr. Konman said members of the APIL raised concerns on the overall reduction of airline services to the island-states in the Micronesian and Oceania regions. He urged APIL members to investigate the monopolistic environment within the airline industry and come up with a resolution to resolve the problem.

“The dramatic increases in airline fares and the resulting reduction in flights within the region heave and will continue to have a significant detrimental effect on the region’s economy, specifically with tourism,” the Chuuk representative stressed.

Meanwhile, Mr. Jones said a five-man team was tasked to look into the dramatic reduction of airline seats in the region, which may be the cause of higher airline fares.

The team will start investigation next month and discuss measures that should be instituted to prevent monopoly of air services.

The resolution which was submitted before the House Committee on Public Utilities, Transportation and Communication blasted the monopolistic practices of the Continental and Air Nauru, which further strains the economies of states and territories in the region.

APIL member-states urged legislative bodies in the region, including the CNMI Legislature, to conduct hearings and investigate the problem to prevent further deterioration of the economic situation in the Western Pacific and Oceania regions. (EGA)