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PIA welcomes Cape Air competition
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Posted on Aug 06 2004
The Pacific Islands Aviation has high hopes about the entry of a new competitor—Cape Air—in the Marianas commuter market.
PIA vice president Jim Stowell expressed optimism that with more flight schedules and competitive fares available, tourists and island residents will be stimulated to travel between Guam, Rota and Saipan.
“It’s good to see Continental come back. This is very beneficial to the passengers, with the larger market capacity, low fares, and more flight schedules,” Stowell said.
On Aug. 1, Cape Air and Continental Airlines launched Continental Connection, which provides up to five additional flights between the three islands at fares reduced by as much as 38 percent. Continental Connection also eliminated the three-day advance purchase that the airline used to require.
The introduction of Continental Connection brought to three the number of airline companies servicing the Saipan-Rota-Guam route—the two others being PIA and Freedom Air.
“I think one of the key points about having Continental back is its large advertising budget. Through Continental’s advertisements, travelers become aware that more options are available to them. Most of them come to us, some go to Cape Air,” Stowell said.
He admitted that there may be “overcapacity” in the market at present, given the volume of passengers that travel within the islands. Still, he bared plans to bring back flight schedules that PIA recently terminated, noting the expected increase in traveler demand.
In reaction to Rota Mayor Benjamin Manglona’s call for PIA and Freedom Air to double their effort in improving customer service, Stowell recalled that PIA has been offering low fares and unrestricted booking for several years now.
“PIA came in when Continental pulled out from Rota in the early 1990s. We provided reliable code-share service for the past 10 years. We kept that market alive,” he added.
