HANMI says loss of Asiana means loss of revenue, jobs

With another long-term investor pulling the plug on its operations in the CNMI, the Hotel Association of the NMI said the Commonwealth will immediately feel the loss of Asiana Airlines as it also means further loss of revenue and jobs.

Asiana Airlines, who announced its decision to close its Saipan last week, is the second long-term CNMI investor to announce its closure. Last month, Hyatt Regency Saipan announced that it, too, would be closing shop this month.

Asiana Airlines has been a frontrunner in providing quality air travel to residents of the Marianas and promoting Korean tourism in the islands since May 1992.

In a statement from HANMI, it said the loss of Asiana will immediately be felt through the loss of jobs and revenue.

“Following the recent announcement that Hyatt Regency Saipan will be closing its doors to the public at the end of June 2024, Asiana Airlines’ closure of the route of Incheon-Saipan is a huge setback. The loss of Asiana—another long-term investor with over 30 years of partnership with the Marianas—immediately translates to a loss of revenue and jobs,” said HANMI.

HANMI noted that Asiana Airlines has been considering its closure since the beginning of the year due to financial losses on the Saipan route. However, they were hired by a local company as a charter and have been able to continue their air service until now.

“This means that the market was already aware that Asiana Airlines may cease operations to Saipan. We were wondering if there were any actions undertaken on the CNMI side to help prevent this from happening,” said HANMI.

HANMI said the loss of these flights is also significant to the tourism industry in general as Asiana is a full-service carrier in the same class as United Airlines in the United States and Japan Airlines in Japan.

“It is not a stretch to say that the current Marianas tourism industry is sustained almost entirely by Korean tourists. Currently, there are two weekly Asiana Airlines flights. The loss of these flights is significant to the industry, as Asiana is a full-service carrier in the same class as United Airlines in the United States and JAL in Japan, providing critical first class and business seats and targeting a different traveler than low-cost carriers. We need both,” said HANMI.

“Despite our goal of becoming a leading tourist destination worldwide, we seem to be heading in the opposite direction, and this requires policy change,” HANMI adds.

As a result of Asiana’s closure, HANMI believes that the Commonwealth Ports Authority should continue to make every effort to retain remaining international flights by reducing termina and landing fees.

In addition, HANMI says the administration should allow the Marianas Visitors Authority to market the CNMI to other viable markets including China.

“As reported in the local newspapers, the CPA has devised a plan to offer current carriers an incentive by reducing fees by half with specific conditions. CPA should make every effort to retain the current international passenger flights still with us by reducing landing and terminal fees. At the same time, the Marianas Visitor Authority must be freed by the administration to market and attract more visitors from all viable tourism markets – including China,” said HANMI.

This is because HANMI and the Saipan Chamber of Commerce continues to believe that “Operation 500K”—a path to attracting 500,000 tourists annually—is a necessary step to stabilize the tourism industry, where businesses can at least break even.

“We reiterate that, firstly, the reinstatement of Annex VI should be endorsed by the administration and Commonwealth Ports Authority and approved by the U.S. Department of Transportation before the implement of CNMI Economic Vitality and Security Travel Authorization Program, known better as EVS-TAP interim final ruling effective Sept.r 30, 2024. Once Annex VI is approved, the CNMI will be allowed to receive an unlimited number of flights from China, as before the pandemic,” said HANMI.