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NMI airports post slight dip in earnings
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Posted on Nov 15 2005
The Commonwealth Ports Authority’s control on personnel costs is paying off, cushioning the impact of reduced concession revenues collected at the three CNMI airports.
According to CPA’s latest financial data, the Saipan, Tinian, and Rota airports earned combined revenues amounting to $11.6 million from October 2004 to August 2005. This represents a 2-percent decline from the $11.8-million gross airport revenues during the same period in fiscal year 2004.
The financial report showed that, while passenger and cargo fee collections increased by $158,639, revenues from rental, concession, and parking fees plunged by $380,652.
Meanwhile, the airports posted savings amounting to $382,236 in the first 11 months of FY2005.
The airport division’s total operating expenses dipped from $9.17 million in the first 11 months of FY2004 to $8.79 million in the same period in FY2005.
Specifically, personnel costs were cut by $406,403, while maintenance and operating expenses were reduced by $24,163.
These savings allowed the airport division to increase its net income by 6 percent even with reduced revenues.
The division’s net income from October 2004 to August 2005 totaled $2.8 million, up from $2.64 million in the same period in FY2004.
As for enplanement, there were 605,489 passengers who traveled out of any of the three CNMI airports during the first 11 months of FY2005. This is a 2-percent decline from the same period in FY2004.
The overall cost of enplanement—or the average amount spent by CPA to serve each departing passenger—was $14.52 during the first 11 months of FY2005.
At the Saipan International Airport, where 90 percent of the passengers took their flights, the cost of enplanement was $13.23.
The Rota airport had the highest cost of enplanement at $33.90, followed by Tinian at $19.05. High operating expenses, compounded by low passenger and cargo traffic, contribute to the high cost of enplanement at both airports.
