MACS interested in CNMI/Guam inter-island service

With the CNMI’s inter-island air service facing legal battles and fare prices at an all-time high, Micronesian Air Connection Services’ interest in providing inter-island travel between the CNMI and Guam could not come at a better time.

Szabo Aerospace, LLC dba Micronesian Air Connection Services (a sister company of Micronesian Air Cargo Services under J&P Holdings) has informed the Commonwealth Economic Development Authority that it intends to pursue inter-island air service between the CNMI and Guam.

In a business plan submitted to CEDA, Szabo Aerospace outlines the establishment of a new passenger aviation company in the CNMI, Micronesian Air Connection Services, focusing on inter-island transportation with a fleet of spacious aircraft.

“The venture aims to address current market gaps and capitalize on the recovering tourism industry by offering competitive pricing, frequent schedules, and superior customer service. Centered in Saipan, Micronesian Air Connection Services will connect Saipan, Tinian, Rota, and Guam, targeting both local residents and tourists,” said the business plan.

The business plan also details the objectives, target market, competitive analysis and opportunities, marketing strategy, operations and financial plan and risk mitigation demonstrating potential profitability within three years.

According to the business plan, MACS aims to revitalize air transportation in Guam and the CNMI as both territories recover from the dual impacts of super typhoons Mawar and Yutu and the COVID-19 pandemic.

“The CNMI’s tourism industry, the backbone of its economy, has faced unprecedented challenges. Visitor numbers plummeted from a robust 487,000 in 2019 to a mere 88,900 in 2020 and further to 12,700 in 2021. Recent data shows promising signs of recovery, with visitor numbers rebounding to 95,600 in 2022. Despite this positive trend, current tourism levels remain at only one-third of the historical peak achieved in 2017, when the CNMI welcomed 653,200 visitors. Similarly, Guam’s tourism industry is a top economic contributor, providing over 21,000 jobs to the local community, making up a third of Guam’s workforce. In 2018, Guam welcomed 20,601 CNMI visitors. In 2023, Guam welcomed 13,063 CNMI visitors. CNMI residents visit Guam for medical services, business relations, and leisure, to see family and friends, and to attend educational institutions. Tourism between CNMI and Guam contributes to several industries in the region, such as retail, hospitality, medical, and entertainment,” said the business plan.

“MACS is a locally rooted company with deep ties to the region. It fuses its intimate regional knowledge with its extensive aviation experience to provide first-rate aviation services. Leveraging its sister company’s established air cargo operations and shared hub infrastructure, MACS can offer competitive pricing and frequent flights between Saipan, Tinian, Rota, and Guam, incentivizing tourism and enabling locals to travel inter-island more frequently. MACS is strategically positioned to accelerate this recovery by addressing critical gaps in the aviation market,” the business plan adds.

As a locally rooted company, MACS says it intimately understands the region’s unique landscapes, cultures, and economic needs while its extensive experience in aviation and impeccable safety record set it apart as a projected industry leader.

“Currently, primarily, two airlines provide flights between the islands, making it significantly challenging for CNMI residents to visit Guam. Flights are less frequent and, in some cases, require layovers and indirect routes. With fewer flight options, ticket prices have increased significantly, making it difficult for locals in the region to afford trips inter-island. The reduced inter-island connectivity further impedes the Region’s economic recovery. MACS’s regional knowledge and extensive aviation experience enable it to provide first-rate aviation services,” said the business plan.

MACS will operate a nine- to 19-seat aircraft fleet and plans to acquire 34-seat aircraft which will provide flexible, efficient, and affordable inter-island transportation.

In addition, by leveraging its sister company’s established air cargo operations and shared hub infrastructure, MACS can offer competitive pricing and frequent flights between Saipan, Rota, Tinian, and Guam, incentivizing tourism and enabling locals to travel inter-island more frequently.

To facilitate these needs, MACS says it will have a streamlined, accessible booking platform that will not charge a higher rate for online bookings.

MACS services will be searchable through Google (like flights and other online booking sources) which would make tickets accessible to tourists unfamiliar with inter-island transportation.

“MACS’ vision extends beyond merely providing air transportation. It aims to be a catalyst for economic growth, a facilitator of cultural exchange, and a trusted partner in the region’s journey toward sustainable development. It is poised to set new standards in the regional aviation industry by prioritizing safety, efficiency, innovation, and community engagement. As the Region continues its recovery and looks toward a brighter future, MACS stands ready to play a pivotal role in connecting islands, people, and opportunities. MACS invites stakeholders, investors, and the community to join it in its exciting venture to enhance mobility, boost tourism, and contribute significantly to the economic resurgence of Guam and the CNMI,” said the business plan.