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‘Ground-handling service should cease sans permit’
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Posted on Dec 06 2005
USG Investments, Inc., which recently disclosed it has begun providing ground-handling services for Cape Air, should cease from those activities pending the decision on the company’s application for a permit before the Commonwealth Ports Authority.
CPA executive director Carlos Salas made this declaration yesterday, saying that USG’s provision of ground handling for Cape Air remains to be an unauthorized activity. “They have to stop. There are regulations at the airport,” Salas said.
Regulations require USG to first secure a ground-handling permit from the CPA, Salas said.
He said USG’s permit application remains under review, saying that the CPA has already notified USG to submit other required documents.
“We’re getting at this case for [USG’s] starting of its operations without a permit from CPA,” Salas said.
He did not say if sanctions would be imposed on USG, but added that the CPA’s compliance officer has been looking into the matter.
Last week, USG president Herman Lieto disclosed that his company began providing ground-handling services for Cape Air, a separate but partner company of Continental Micronesia in providing flight services on Saipan, Rota, and Guam.
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.
Lieto said the company’s contract with Cape Air, which would be effective for one year and renewable for up to three years, does not include aircraft maintenance and fueling services.
