‘SMA’s intent to terminate services would jeopardize Tinian community’s wellbeing’
Star Marianas Air Inc.’s recent threat to cease inter-island air service pursuant to a long-ongoing dispute with the Commonwealth Ports Authority over its fees has shaken up the island of Tinian whose well-being depends on SMA’s air service.
Last Tuesday, SMA issued a letter to CNMI leaders informing them of its intent to cease its scheduled flight service for the islands of Saipan, Tinian, and Rota by October should no resolution is reached between SMA and CPA regarding their long-standing battle over airport fees.
Yesterday, Tinian Mayor Edwin Aldan wrote to SMA chair Robert Christian urgently seeking reconsideration and expressing the deep concerns of the people of Tinian following SMA’s announcement that it intends to terminate its interisland transportation services between Saipan, Tinian, and Rota, effective Oct. 15, 2024.
“This announcement has raised significant alarm within our community, and I urge you to reconsider this decision, as it will have a profound impact on the Tinian economy and the livelihoods of our residents,” he said.
Aldan shared that Tinian is home to over 2,000 people who rely heavily on Star Marianas to access essential institutions on Saipan such as hospitals, businesses, and government and judicial institutions.
“The termination of your services would not only disrupt these vital connections but also jeopardize the well-being and economic stability of Tinian families. Thank you for your attention to this urgent matter. I look forward to your positive response and am hopeful that together we can find a path forward that benefits all parties involved,” said Aldan.
In response, SMA chair Christian said the issues Aldan raised are “misdirected”
“While we fully understand the seriousness of the situation and share your concerns about maintaining essential air services for Tinian, we believe the issues you have raised are somewhat misdirected. The primary challenge we face is not a lack of willingness on Star’s part to continue providing vital air services but rather the unsustainable fee structure imposed by CPA,” he said.
Christian explains that CPA’s fees make it economically unviable for the airline to operate under the current conditions.
“Our decision to consider suspending services stems directly from the CPA’s actions and fee assessments, which are not aligned with the principles of compensatory fees. The current fee methodology lacks transparency, detailed cost allocation, and a fair treatment of common use areas, all of which result in charges that do not accurately reflect our actual usage of airport facilities and services. These practices impose a disproportionate financial burden on Star, jeopardizing our ability to sustain operations,” he said.
Christian, in closing, urged the Tinian Municipality to set up a discussion between other CNMI leaders to intervene in the unfortunate situation between SMA and CPA.
“Given the critical importance of air service to the community, we believe that a more productive approach would be to address these fee structure issues directly with the CPA. We suggest organizing a discussion involving the governor, the Tinian Legislative Delegation, the Tinian Municipal Council, and the CPA to work toward a fair and transparent fee structure that ensures the sustainability of essential air services. We look forward to working together to find a solution that supports the needs of the Tinian community while ensuring the viability of Star’s operations,” said Christian.
Edwin P. Aldan
