Palacios: United Airlines should be considerate to people of the region

Gov. Arnold I. Palacios said yesterday that United Airlines should be proud to be part of Micronesian history and should be considerate to the people of the region.

Palacios said during a press conference that when Continental Air Micronesia, the predecessor of United Airlines, served the Micronesian region and opened up the Japan market, it became a very profitable route for them.

Palacios said this Micronesian route has a history of its own and that he believes United Airlines should really be proud of that history and be considerate to the people of the region.

He said they can only ask United for their consideration as their ticket prices are private, corporate decisions.

“I’m hoping that that with the new awareness of our people now, you know, pushing back and or requesting United to lower its price, I hope that United would give that consideration,” said the governor at the press briefing held in the Office of the Governor’s conference room.

Palacios said the people were subsidizing United during the COVID-19 pandemic, but the pandemic is not here anymore yet their prices never went back down.

He said the prices not just hurt the traffic between here and Guam for example, but also to Japan and other travels beyond Guam.

Palacios said his wife was really telling him that United’s round trip ticket to Guam is $580 and not $300.

Dan Weiss, who is the United Airlines managing director for Global Government and Regulatory Affairs, told the CNMI Legislature last week that they offer residents of the CNMI and Guam access to a “resident” fare of $302 round-trip for basic economy and $402 round-trip for standard economy, both fares excluding taxes and fees.

Palacios said it really impacts the economic opportunities for tourism and travel between the people from Guam and the CNMI, and even with the increasing number of military personnel for R&R to the Commonwealth.

The governor said he is glad that community members Jessie Torres and Glen Hunter started an online petition to put this awareness on the table to United Airlines.

The online petition is demanding United Airlines, Attorney General Edward Manibusan, U.S. Department of Transportation, and the Department of Justice do something about these hefty ticket prices.

Palacios also thanked Guam Lt. Gov. Joshua Tenorio for helping support this push for U.S. Congress to create a federal cabotage exemption for the CNMI, as this is not just Saipan, Guam issue/problem, as it’s also a problem throughout Micronesia from Guam.

“Can you imagine how much it costs to fly from Guam to Palau, Chuuk, Pohnpei. This is a regional issue,” he said.

Palacios said they will be having a Micronesian Chief Executive Summit in Guam this summer and that he is almost 100% sure that this issue of connectivity in Micronesian region would be something that ought to be brought up.

Palacios said they brought up the issue in the U.S. Congress.

He said there are many states that avail of the essential U.S. service subsidies from the Department of Transportation to make sure that those communities are served with a sustainable air transport, stable and affordable rate.

“So we’ve brought these up with other members of Congress as well as FAA [Federal Aviation Administration], and the Department of Transportation and I hope that those discussions that we’ve had with many of these folks will bear fruit,” Palacios said.

Marianas Visitors Authority managing director Christopher Concepcion, who was present at the press briefing, echoed Palacios sentiments.

Concepcion said first and foremost, it is corporate decisions that private businesses make based on many factors—volume, revenue forecasting, and network planning in a sense.

He said they are, however, concerned about the cost of travel as it limits the options for the CNMI to be able to market to the military traffic in Guam.

Concepcion said at $580 for a 20-minute flight when they can get a $300 round trips to Manila or $200 round trips to Seoul, those factors of course weigh in on everything the decision-making processes here in the CNMI.

He said they work on a regular basis to promote travel to the CNMI with United Airlines, and throughout their network it is one of the largest airlines in the world.

“And so we do appreciate their services in CNMI,” Concepcion said, adding that they definitely are going to meet with them privately to discuss the matter.

He said it looks like the petition and the various comments being shared in the media have forced United to address the issue.