CPA passes resolution to establish airport incentive program

Despite tensions rising between board members, a majority of the Commonwealth Ports Authority board voted in favor of passing a resolution that would make way for the establishment of an airline incentive program.

Yesterday, tension arose between board member Thomas Villagomez and board vice chair Anthony Cabrera during the voting process of CPA resolution 2024-04.

Villagomez, along with board member Ramon Tebuteb, raised concerns about passing the resolution as they practiced their fiduciary duties to ensure that CPA wasn’t violating any rules and regulations.

In response, Cabrera stated that all that was needed was a yes or no answer adding that multiple discussions about the resolution had already been had and it was time to vote.

Ultimately, Villagomez voted against the resolution’s passing while Tebuteb chose not to vote at all.

Meanwhile, the resolution passed, 5-1, with the other five board members voting in favor of it.

Essentially the resolution passed reinstates airport fees prior to the October 2023 rate adjustment to allow the special committee to finalize an airport incentive program.

“I’m going to frank, we can discuss details all day, but times are changing. Things are developing and we have to make changes as we go. It’s not perfect but we’re trying to address something that can really impact our islands. We can talk about this subject to death but nothing will happen while in the meantime our economy is slowly dying as we are busy [arguing],” CPA chair Joe Ayuyu said.

According to Saipan Tribune archives, back in September 2023, the previous CPA board adopted a new rate methodology that reflected a 90% increase in landing fees and a 79% increase in terminal rental fees which makes up CPA’s fiscal year 2024 budget.

The increase took effect in October 2023.

With the adopted budget, the CPA terminal rental rates for the Francisco C. Ada/Saipan International Airport’s main terminal went up from $19.49 per square foot to $34.92. Meanwhile, the terminal rental rates for all CNMI commuter terminals went up from $7.79 to $13.97.

As for landing fees, with the 90% increase, CPA charges international airline carriers $15.25 per thousand lbs of certified maximum gross landing weight of the aircraft; they were previously being charged $8.01. As for CNMI commuter terminals, the 90%-increase brings landing fees up from $4.81 to $9.15.