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Freedom Air operation in the CNMI is now ‘inactive’
Liability insurance expired on March 8
FThere’s one less carrier serving the CNMI after it was confirmed that Freedom Air ceased flying to Saipan, Tinian, and Rota early this month.
Commonwealth Ports Authority executive director MaryAnn Lizama said Friday that the company’s liability insurance was recently cancelled and CPA has been not notified of its reinstatement.
She disclosed that based on the notice of termination/cancellation of policy issued by Kudlich Insurance, Freedom Air’s coverage expired on March 8, 2014. No further correspondence was received from the insurance company.
“Freedom Air’s activities have been grounded. It has been noted that no activities are occurring on Saipan, Tinian, and Rota. No further notice from Kudlich Insurance to cancel the notice of termination and cancellation of policy has been reported [to CPA],” said Lizama during Friday’s board meeting.
The cancellation, it was learned, has also been relayed to the U.S. Federal Aviation Administration.
Saipan Tribune tried to reach the offices of Freedom Air on Saipan, but no one answered the phone lines.
Kudlich nearly terminated Freedom Air’s insurance policy in August last year due to unpaid premiums. The carrier, however, was able to pay before the deadline, resulting in its continued operation.
Aviation insurance provides coverage for hull losses as well as liability for passenger injuries, as well as environmental and third-party damage caused by aircraft accidents.
The carrier filed for Chapter 11 bankruptcy in Guam in September last year.
