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Freedom Air hikes prices
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Posted on Jun 20 2008
Freedom Airlines, a major air service in the Commonwealth, has just enacted its first major price hike in 12 years, responding to rising fuel and shipping costs, a move that is sure to put added strain on travelers.
The increase comes just after Continental Airlines earlier this month announced it will cut direct flights between Saipan and the Philippines in July, also citing a jump in fuel costs.
Inquiries with Freedom’s offices showed the price of tickets from Saipan to Tinian have jumped $20 to $84. The price spike is steeper for tickets on the airline’s Tinian-to-Rota route, now up $58 to $229, and on tickets for flying from Tinian to Guam, up $69 to $261.
Aviation fuel costs, shipping charges and skyrocketing automobile gas prices over the last several years have put the airline in a tough financial situation, according to general manager Joaquim Flores.
“9-11 really impacted us and it just snowballed from there,” Flores said in an interview Friday. “The price of everything has gone up.”
For example, Flores noted higher shipping costs have put a severe squeeze on the airline because its aviation fuel must be shipped from Australia at a cost of $29,000 every two weeks.
Mounting insurance costs for airline and an array of other added costs have also drained the airline’s funds.
“It’s the just cost of doing business here,” said Flores.
