‘Airport rates will increase’
The Commonwealth Ports Authority fears that the island of Tinian and Rota will be hit the hardest by the U.S. Congress’ recent decision not to expand the Essential Air Service program to the CNMI.
According to CPA chair Kimberlyn King-Hinds, the impact of the U.S. Congress’ decision will be felt hardest by the communities of Rota and Tinian as CPA is running out of options in terms of subsidy and funding.
“Expanding the EAS to include the CNMI has been an issue that we’ve been working on for years. CPA saw an opportunity to once again advocate for the inclusion of the CNMI when H.R. 3935 was before the U.S. Congress. We knew it was a tough sell given the climate in Congress. But just because it’s hard doesn’t mean we don’t try, knock on doors, and speak up. The fact is, airport rates will increase in the absence of a direct subsidy. The communities which will be hit the hardest with the increase are the communities of Rota and Tinian, who rely on air transportation to access basic health care services,” she said.
Delegate Gregorio Kilili Sablan (D-MP), in conjunction with CPA, have pushed hard for the inclusion of the CNMI on the list of territories and small communities that are eligible for the U.S Department of Transportation’s Essential Air Service program. However, the U.S. Congress has since determined that given the current political momentum, reestablishing EAS eligibility for the Marianas airports is not a viable option at this time. Had the CNMI been included in the EAS, that would have allowed CPA to tap federal funds to subsidize some of the cost of interisland travel. Without that subsidy, interisland travel becomes prohibitive.
King-Hinds explained that the subsidy that could have been provided through the EAS program could have greatly helped sustain interisland air-service in the CNMI once airport rates inevitably increase.
“We don’t need subsidy if our tourism industry is thriving. Unfortunately, we are nowhere close to recovery and the policy to eliminate one of the biggest market is having a real impact not just on the ports but to the economy in general. These issues are all intertwined and what we are focused on is having conversations with members of Congress and federal partners, to include Department of Defense, about giving the CNMI a hand-up, not a hand-out, by collaborating to create opportunities for economic sustainability,” she said.
Unfortunately, it seems as though this will not be the case for now.
According to Saipan Tribune archives, CPA previously pursued the EAS program in their efforts to obtain additional funding before the end of the fiscal year, but was found unqualified.
“CPA does not qualify for the EAS program because it is not an ‘eligible place.’ To be considered an ‘eligible place,’ the community must have received Essential Air Service between Sept. 30, 2010, and Sept. 30, 2011. The CNMI did not receive Essential Air Service between those two dates,” said CPA.
In addition, CPA explained that for the CNMI to be eligible to participate in the EAS program, U.S. Congress would need to amend 49 U.S. Code section 41731 and include the CNMI as an accepted location.
“CPA has discussed EAS and its challenges with multiple CNMI officials, including Delegate Gregorio Kilili Camacho Sablan. It is CPA’s understanding that there is currently no appetite in [the] U.S. Congress to expand the EAS program,” said CPA.
According to online sources, EAS is a federal program enacted to guarantee that small communities in the United States maintain commercial air service. The program’s goal is to maintain a minimal level of scheduled air service to small communities that otherwise would not be profitable.
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