‘Not all hope is lost on JAL’

Gov. Juan N. Babauta remains hopeful that after the “massive restructuring” going on within Japan Airlines, the new company would continue to provide services to the CNMI.

“Not all hope is lost with respect to JAL service to Saipan. Not all hopes are lost,” said Babauta in an interview upon returning from Japan yesterday afternoon.

He did not elaborate, though, noting that “everything right now is uncertain with JAL.”

Babauta led a 10-member delegation to Tokyo this week to meet with JAL executives following reports of the airline’s pullout from the Marianas by October this year.

Babauta said that JAL’s restructuring and reorganization will continue up to Oct. 1. As such, he said, holding talks with JAL at this time would be immaterial.

“Everything right now is uncertain. Nobody can make any decision. That’s how disadvantaged is talking to anybody. …They are reorganizing a huge corporation,” he said.

The governor said the CNMI would begin talking with the business group after this period.

“I think the dust is going to settle after Oct. 1 but not all hope is lost…After this restructuring, things are going to become clearer. Then the CNMI can talk to the new organization that can make decisions,” said Babauta.

Babauta and his team met with current JAL president and chief executive officer Toshiyuki Shinmachi in Tokyo.

In a statement two days ago, the Governor’s Office quoted Shinmachi as saying that, even if scheduled flights are temporarily stopped, the company would continue to assess the profitability of the Saipan route and could return.

Aside from the JAL president, the CNMI officials also met with officials of the Northwest Airlines and Continental Airlines. The governor declined to disclose the result of the separate meetings with the two airlines.

During his meeting with Shinmachi, the governor reportedly thanked the JAL executive for the airline’s 28 years of service to the CNMI, and explained how serious the impact would be if the company ended its Saipan flights.

The Governor’s Office said that the Marianas Visitors Authority and the Commonwealth Ports Authority are now preparing packages of financial incentives for airlines that bring tourists to the Northern Marianas.

JAL is reportedly expected to make a formal announcement about its plans in the Marianas next month.

JAL currently provides seven weekly flights between Narita and Saipan and another seven weekly flights from Kansai to Saipan.

The airline is also expected to stop its services to Honolulu, Guam, Bali, Ho Chi Minh City, and other international destinations due to the company’s financial woes.