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NMI airports’ net income rise
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Posted on May 30 2005
CNMI airports posted a 55-percent growth in net income in the first seven months of the fiscal year 2005, as a result of increased aviation revenue and termination of an incentive program for airlines.
According to the Commonwealth Ports Authority, the Saipan, Tinian, and Rota international airports earned a combined net income of $1.94 million from October 2004 to April 2005.
This represents an increase of $689,119 from the airports’ net income in the same period last year.
CPA stressed, however, that its net income did not necessarily mean extra funds for the ports authority, as the surplus was needed to meet bond payments and maintain bond liquidity.
A CPA financial report prepared by comptroller George Palican showed that the airports increased revenue by 3 percent, from $7.21 million in the first seven months of FY 2004 to $7.43 million in the same period in FY 2005.
About $230,000 of the income increase came from the aviation revenues, which totaled $4.64 million in the first seven months of the current fiscal year.
At the same time, the airports cut their combined expenses by 8 percent, from $5.96 million last year to $5.49 million this year.
Specifically, the airports reduced their personnel costs by $267,164. The maintenance and operating expenses also went down by $194,464, following CPA’s decision to call off the “above-median” incentive program.
Under this program, airlines that brought in more than their average number of passengers got discounts in airport fees.
CPA statistics also corroborated data released by the Marianas Visitors Authority, which earlier reported declining visitor arrivals to the CNMI due to reduced airline seat capacity.
CPA said arrivals totaled only 382,026 passengers, a 3-percent decrease compared with the previous year’s 393,494 passengers.
This, despite a 4-percent increase in landings which numbered 18,938 this year. This figure includes landings by both jets and small planes.
However, departures posted a slight increase of 0.4 percent, reaching 388,581 passengers compared to the prior year’s 387,152.
