Multimillion CNMI airline eyed

Acting governor Eloy S. Inos said the Fitial administration has been planning on either investing in a multimillion airline in partnership with private businesses, or at the very least push for a privately-owned airline with government backing to directly fly tourists to the CNMI.

Inos said that having an airline to bring in direct flights from Japan, China, Korea and other markets is also key to establishing a casino industry on Saipan, in addition to those on Tinian and Rota.

“We’d like for it to be a CNMI carrier,” Inos told Saipan Tribune in an interview at the celebration of the 25th sacerdotal jubilee of Fr. Isaac “Ike” M. Ayuyu on Saturday at the Pacific Islands Club.

Inos, who oversees government finances, said the plan is under discussion with the Marianas Visitors Authority, among other entities.

“There are several ways to do it. One would probably require investment by the government in partnership with the private sector, or as a private effort,” he added.

At this time, there’s no telling how much the government can invest in such an airline if it chooses to partner with private investors.

Rep. Stanley Torres (Ind-Saipan), in a separate interview, said it makes sense to also look at direct flights to the CNMI if the government is trying to establish a casino industry on Saipan.

Torres is the author of a local bill seeking to establish casino gambling on Saipan. The bill is now on the governor’s desk for action.

“I support this plan to establish a CNMI carrier. Continental stopped direct flights to the CNMI,” he added.

The plan could also involve airlines that are already operating in the CNMI or in the region.

“Again, we would like to make it a CNMI carrier. …We will have control over it; by control I mean maybe if we don’t make enough money through the airline business, but the multiplier effect of the presence of the tourists brought by that airline company could outweigh any negative financial impact,” he said.

Should the plan materialize, a flag carrier could enjoy preferential rights or privileges, accorded by the government, for international operations.

Inos said the planned airline won’t directly compete with Continental because the latter no longer flies passengers directly to the CNMI from other countries, but only through Guam.

The acting governor has this to say to private investors who may be interested in an airline business or are already engaged in one: “This is something that the CNMI government supports and that we will work with whoever likes to undertake this project. We believe in this project, we believe there’s a market out there. And that we will give the organization the full support from this government. …We need to bring the tourists here.”

Richard Pierce, executive director of the Saipan Chamber of Commerce, said the Chamber has not been part of discussions about establishing a CNMI airline.

The acting governor said that, like most plans, the administration would have liked this to be done soon but there are a lot of things to take into consideration besides investment money, such as going through the permitting process. Marketing the airline also requires at least a 90-day lead time, he added.

“It could be a 737 aircraft with 140 passengers, just like the Continental’s aircraft. The first market is Japan. We want to do it because we see some potential in the Japanese market and they’re beginning to come back. So we try to concentrate on that,” he added.

Inos said the government could also lease an aircraft or two for the planned airline.

The CNMI has Asiana Airlines, Delta Airlines and Fly Guam as official signatory airlines, in addition to those bringing in charter flights such as China Southern, Air China, and Shanghai Airlines.