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Skymark only one that availed of CPA incentive program
Toves says Star Marianas Air was informed about the program since February last year
As of yesterday, only Skymark Airlines Inc. has availed of the Commonwealth Ports Authority’s air carrier incentive program, according to Airport Facilities Committee chair Barrie C. Toves.
He said that when he first started pushing for the creation of this air carrier incentive program, his objective was to enhance air service to and from Rota because that is the most underserved route especially for inter-island flights.
Toves said that CPA accepted Skymark’s application and approved it and that Skymark is currently on its first year of participation in the program.
The five-year program allows new airlines to avail of a 75% discount on airport tariffs during the first year of operation and 50% discount during the second year. The program, adopted by the CPA board in September 2018, aims to promote competition, attract new airlines, and increase scheduled direct passenger service to unserved and under-served destinations.
Toves said they anticipate a new airline—AH Boutique Air—would be applying for the program as soon as they’re ready to begin their operation.
Toves also assured that all airlines operators, including Star Marianas Air, were informed about the incentive program.
Toves said that, soon after creating the program, they instructed CPA management to inform all airline operators about it and give them attachments, the application and the narrative of the program itself. He gave this clarification in response to Star Marianas Air president Shaun R. Christian’s recent statement about not being informed about the incentive program.
Christian said the CNMI remains one of the only jurisdictions within the United States that imposes tariffs on aircraft parts through the assessment of beautification taxes.
Christian also stated that CPA has not made them aware of any incentive programs available to the company and continues to charge the maximum passenger facility charges allowable.
But Toves showed Saipan Tribune last week the CPA management’s email message dated Feb. 19, 2019, which was sent to all international and local flights about the incentive program. Toves said Star Marianas Air was one of those on the list of airlines and that CPA executive director Christopher S. Tenorio sent the attachment memorandum to Christian.
He said the subject of that memo informed all airlines that CPA has established an air carrier incentive program for the Saipan, Tinian, and Rota airports.
Toves said that only one air carrier was operating on Rota at that time. “So that’s the reason why we adopted the program,” Toves said.
When asked for more information about the program, Toves said yesterday that he was expecting Star Marianas to be interested since they’re the sole airline operating and servicing Rota.
