Low-cost airline wants to land on Saipan

[B]By WALTER YU[/B] [I]Special to the Saipan Tribune[/I]

In the first quarter of this year, four among 10 passengers chose to fly in a low-cost airline for domestic flights. I’m talking about Korean airlines right now. Last week’s Korean Daily newspaper reported that in 2008, only 9.7 percent of travelers chose to fly on low-cost airlines, but this has increased five times in the last three years and it is now at 53 percent. Low-cost airlines that have been increasing their domestic flights are now targeting the international market. Among the low-cost airlines, Jin Air has already entered Guam and is now a regular flight, which brings Guam more tourists than before. It provides $80 to $120 lower rate than the other airlines. This is the advantage of a low-cost airline and this lower fare persuades travelers to choose Guam as a destination instead of other tour destinations that they consider around Pacific and Southeast Asia.

Presently, there are five low-cost airlines in Korea: Jeju Air, Air Pusan, Jin Air, Eastar Air, and Tway Airlines. Low-cost airlines go through three steps to obtain an AOC (Air Operator’s Certificate) that allows them to fly international flights, which they have acquired not too long ago. Now the airlines are in search of a best destination for them to fly to.

Saipan is a close destination to Korea and is well known as a tourist destination. It is especially known for its romantic aspects and it is a popular destination for honeymooners. So the low-cost airlines are very much interested in Saipan as a regular line flight destination. Recently, Saipan is increasing in popularity for family vacation and revisits. These two factors coincide with the factors that low-cost airlines look into the most. It is feasible for us to bring in another airline if the residents and the government will support and make effort together as a team, though this requires joint NMI and federal approval.

Realistically, Jin Air and Pusan Air are not likely to be able to come into Saipan. We have other three airlines that would be our target. We should lobby and negotiate with the airlines in terms of the agreement with the local government.

The Saipan Chamber of Commerce should take the lead in forming an exploratory delegation in concert with key players in the tourism industry, including policymakers. The immediate goal is to encourage the entry of low-cost airline that could eventually branch off into serving inter-island hops.

As we openly begin synergistic efforts to improve the conduct of investments between South Korea and the NMI, we would have nurtured a lasting relationship that benefits our people collectively. All we need is give opportunity a chance. The cards of what must be done together subsequently should fall into place naturally.

Also, I believe the people of Saipan should actively participate in this matter. We should skip formalities and use a systematic way of working out these hard economic times that we are facing all together.

The Chamber of Commerce, tour agencies, department stores, HANMI, golf courses, restaurants, optional tour agencies, the Korean Association, or any other interested individuals should share the same goal. Then, who is most fitted for the position could gather to hold a briefing session then they could work as a team to receive the needed support from the local government to help the airlines that are trying to come into Saipan.

Since Saipan’s local community has a limited range of surroundings, we all know each other very well. This is an advantage for us. We know the right man for the job that needs to be done. Instead of sighing through this tough economy, we should encourage each other to work on it and eventually we will achieve our goal. It would definitely mean a lot to all Saipan residents.

There is a saying, “Economy is in the mind.” Depending on how we make up our mind, the result could turn out to be a success or a failure. It is not certain that we will be able to bring in a new airline just because we give our efforts, but, “Where there’s a will, there’s a way.” We hope to believe so and work our way up step by step. There will be obstacles in our way, but history has proven that it’ll answer only to those who try. Let’s overcome each individual’s footing and designate our course to benefit the general public. In the CNMI, tourism is everybody’s business.

[I]Walter Yu is the administrator for a commission called Korean Low-cost Airline Attracting Committee. The committee is gathering an influential group of people on Saipan who could support their goal, which is to attract a new airline to Saipan.[/I]