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Firms begins ground-handling service for Cape Air
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Posted on Dec 01 2005
USG Investments, Inc. yesterday disclosed it has begun ground-handling services for Cape Air, a separate but partner company of Continental Micronesia in providing flight services on Saipan, Rota and Guam.
“All the paper works are done,” said USG president Herman Lieto in a telephone interview in late afternoon yesterday.
Lieto said his company provides Cape Air exclusive ground handling services in the CNMI, particularly those pertaining to passengers and baggage, as well as ramp services. The company’s contract does not include aircraft maintenance and fueling, he said.
Continental Micronesia could not be reached at press time as to whether USG’s takeover of Cape Air’s ground handling would result in possible layoff of more employees. The furlough process began last October following the pullout of Saipan services by Japan Airlines, for which Continental used to provide ground-handling services.
Lieto said eight of USG’s 25 staff involved in Cape Air’s ground handling services were among those furloughed by Continental Micronesia. Servicing six flights daily to Rota and Guam, Cape Air requires USG to provide ground-handling services from day to night.
USG’s contract with Cape Air would be effective for one year, renewable up to three years, according to Lieto.
Last Friday, Commonwealth Ports Authority executive director Carlos Salas disclosed that USG has filed with his office an application for ground-handling permit. At that time, though, Salas said the application had yet to be approved.
The Saipan Tribune yesterday contacted CPA’s administrative offices to find out the status of the application, but a staff said that Salas and deputy director Regino Celis were not available for interview.
