Northwest introduces Osaka-Saipan flights

Japan Airlines’ pullout from the CNMI will leave Northwest Airlines with a monopoly on direct Japan-Saipan service starting October but this will not necessarily result in increased airfare, a Northwest official said yesterday.

James Mueller, Northwest managing director for Asia and the Pacific, said that customer demand and competition in the market place would ultimately determine the airline’s rates.

He noted that, while the CNMI’s attractiveness as a vacation destination was a big factor in determining airfare, the availability of a whole host of other travel destinations should also be considered.

“Even though we will be providing the only service [between Japan and Saipan], we still have to be very cognizant of other opportunities travelers have. That will certainly play into our decision with regard to pricing,” Mueller said during a press conference at the Governor’s Office yesterday.

Northwest, which currently offers daily service from Saipan to Tokyo and Nagoya, will introduce daily nonstop flights between Osaka and Saipan on Oct. 1, 2005, three days before JAL stops regular service to Saipan.

The new service will be operated with Boeing 757-200 aircraft, with 20 seats in business class and 162 seats in coach class. It will provide the destination 66,430 seats annually, a 24-percent drop from the 87,360-seat capacity of JAL’s current Osaka service.

Meanwhile, no airline has so far announced plans to replace JAL’s daily Tokyo-Saipan flight. This service provides a total capacity of 94,640 seats a year.

Mueller said Northwest was not planning on increasing the frequency of its Tokyo-Saipan service for now. “We routinely evaluate opportunities for new flights. Right now, we’re focused on launching the new service from Osaka in October. In the short term, that’s going to be our initiative in the market. Beyond that, it will depend upon conditions as they develop,” he said.

Nevertheless, government officials and tourism industry representatives took turns yesterday in expressing their appreciation to Northwest for the new Osaka service.

“The economic impact [of JAL’s pullout] would have been worse had Northwest not stepped up to the plate and partially filled this void. That means a lot to us. We appreciate that and we thank Northwest,” said Gov. Juan N. Babauta.

Marianas Visitors Authority board chair David Sablan pledged MVA support for the new service, citing plans to spruce up the destination to help entice more travelers.

Other officials present at the press conference were MVA managing director Vicky Benavente and MVA board members, Commonwealth Ports Authority executive director Carlos Salas, and representatives Joseph Deleon Guerrero, Martin Ada, Arnold Palacios, and Ray Tebuteb.