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CPA backs waiver on terminal fee for inter-island travelers
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Posted on Feb 02 2005
The Commonwealth Ports Authority has asked the Washington Representative’s Office to lobby the U.S. Congress to enact legislation that would allow a waiver of the passenger facility charge for commuter passengers.
CPA executive director Carlos Salas explained that existing federal law require that the PFC be assessed across the board, without discrimination whether a passenger is taking an international or a commuter flight.
This rule has stirred complaints particularly among passengers of commuter flights, who must pay the $4.50 charge every time they depart from any CNMI airport. Due to the PFC implementation on Jan. 1, a round-trip ticket between Saipan and Tinian, for instance, now costs $64. This represents a 16-percent increase from the previous price of $55.
“Unfortunately, the PFC has to be applied across the board. It’s a federal and it will take an act of the U.S. Congress to change that,” Salas said. “We have asked our Washington representative, Pete A. Tenorio, to see if they can lobby and get Congress to allow us to waive the PFC for domestic passengers. Hopefully, we can get a waiver in a couple of years or so.”
CPA instituted the passenger facility charge on Jan. 1, 2005. It applies to both international and inter-island flights departing from any CNMI airport.
Airlines companies collect the fee through sold airline tickets. The fee is similar to departure/terminal fees collected by other airports abroad.
PFC collection would provide the 10-percent matching fund required of CPA for its airport improvement projects under the FAA and the U.S. Department of Transportation for the next 10 years.
Funds that would be generated through the passenger facility charge would also help CPA meet its debt service obligation.
