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CPA implements new way to assess rent
The Commonwealth Ports Authority has approved a new method to assess the rent that airlines pay CPA.
According to CPA board chair Kimberlyn King-Hinds, the board recently approved a new method to assess the rental rates imposed on airlines that do business at the Francisco C. Ada/Saipan International Airport.
“The board approved the final adoption of our new methodology for assessing rates at the airport. The current methodology is outdated and most U.S. jurisdictions have adopted what we…will be implementing. It’s considered best practice as far as the industry is concerned,” said King-Hinds.
Essentially, the new method would determine rates by the number of square feet used, among other factors, as opposed to the former method that was based on the number of passengers aboard each flight.
“The new methodology will charge terminal rental rates based on square footage, landing fee, and per use. What this means is that all users will pay their fair share depending on their usage. So rates are set to allow for full cost recovery from all users instead of the current methodology, which relies on passengers. The rates set will be determined by CPA’s needs for that fiscal year so the rates may go up and down within a fiscal year, depending on that need,” she said.
By implementing this new method, the rates for Saipan, Tinian, and Rota commuter terminal will be significantly less than the main international terminal, King-Hinds said.
