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New airline may enter the NMI—Babauta
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Posted on Jun 15 2005
Gov. Juan N. Babauta said yesterday that a new airline company—which he did not name—is considering entering the CNMI.
“There is a particular airline that may jump on board,” he said during yesterday’s Cabinet meeting.
But noticing the presence of the media in the room, the governor withheld the name of the company. “It’s not yet for reporting. We can’t make it public yet,” he said.
Babauta, who will lead a second trade mission to Japan tomorrow, said that the CNMI will make a presentation to different airline companies in Tokyo.
He said the CNMI delegation will report about the government’s incentive programs for airline companies as a way to boost tourism arrivals in the Commonwealth.
The Legislature recently passed a $2 million “incentive” funding for the Commonwealth Ports Authority. The administration is expecting another $2 million from the Legislature for the Marianas Visitors Authority.
Babauta said that JAL’s possible pullout from the CNMI “is a major, major issue.” He said the impact across the community could reach $80 million to $100 million.
“What we’re doing is to try to mitigate the problems. We’re going to Japan to meet with concerned groups,” he said.
In the first visit, he said the CNMI delegation met with JAL executives, the Japan Ministry of Transportation, and the U.S. Embassy in Tokyo. The group also met with representatives from Continental Airlines, Northwest Airlines, and “another airline company.”
Babauta’s team will leave again for Tokyo tomorrow to follow up on the previous meetings. The group has mapped out actions “they need to take to ensure that any reduction in service by JAL can be offset by increasing flights from other carriers.”
