‘Increase in airport rates concerning’

Gov. Arnold I. Palacios says he is concerned about the upcoming increase in rates to be implemented by the Commonwealth Ports Authority as it would impact tourism negatively.

Previously CPA announced that it would be implementing its budget for fiscal year 2025 which includes a large increase in airport rates and fees.

In an interview with Palacios, he said he is concerned.

“I’m concerned about that because obviously Asia Pacific is a very competitive destination. We’re competing with Thailand, Vietnam, Taiwan, the Philippines, Japan, Korea so we need to make sure we don’t impact the feasibility and viability of international airlines that come to the Commonwealth,” he said.

Palacios said he will be sitting down with the CPA board to further discuss the matter.

“I’m meeting with the CPA chair to sit down and hash this out but eventually, we’re going to be sitting down with the board to see what kind of impact they’ve projected. I’m just very concerned about this,” he said.

Following a previous board meeting, CPA shared that the terminal rental rate that airline companies will pay at the Francisco C. Ada/Saipan International Airport will go up to $41.07 for fiscal year 2025, from $34.92 in FY 2024, while the landing fee will increase to $19.73 from $15.25.

As for the commuter terminal, the terminal rate went up to $16.43 from $13.97, and the landing fee to $11.84 from $9.15.

CPA comptroller Sheryl Sizemore informed CPA board members during a previous board meeting that the new rates will take effect by Dec. 1, 2024

Since fiscal year 2023, CPA has had no choice but to increase fees because as an autonomous agency, CPA has to garner funds through fees and rates to subsidize its operations.

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.

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 pounds 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.