CPA urged on port-fee cut

The Aviation Task Force has asked the Commonwealth Ports Authority to reconsider the request of Northwest Airlines for a 50 percent reduction in passenger arrival fee of $2.20 and departure facility charge of $5.79.

Tokyo-based Northwest vice president Jun Mokudai has sought the incentive for the airline to upgrade its aircraft on its Narita-Saipan route from DC 10 to Boeing 747.

The task force said this would provide the ports authority with the needed additional revenues due to the greater seating capacity of a B 747 which can carry 400 passengers from a DC 10 which can only accommodate 184 passengers.

“We view Northwest’s proposal as an incentive for a carrier to upgrade its aircraft and not as a reduction in CPA’s current fees and charges. Other carriers may wish to upgrade existing aircraft from a 727 to 757 from 767 to DC 10. In each case, the CPA could make the necessary changes to enable it to increase its revenues. If a carrier do not avail itself of this incentive, the CPA would not suffer any revenue loss,” the task force said.

Furthermore, the task force also requested the ports authority to consider reducing the fees and charges by 50 percent for any carrier that would introduce direct service to the Northern Mariana Islands from a market that is currently not being served for a period of not less than a year to offset some of the carrier’s initial start-up costs.

CPA has earlier ruled out providing any incentive due to the deepening financial crisis besetting the ports authority which was brought about by the Asian economic crisis. In fact, the agency has been planning to carry out an increase in passenger facility charge and landing fee.

Various airlines in the CNMI have rejected the proposal of the ports authority to raise its airport fees due to the continuous downturn in tourist arrivals.

Japan Airlines said the proposed rate increase would force JAL to downsize the operations. The airline has already pledged to offer lower rates during three holiday occasions as part of its commitment to bring in more visitors to the CNMI.

Likewise, the Japan-Saipan Travel Association has asked the CPA not to push through with the planned rate hike saying additional cost would be passed on to consumers.

The task force request was signed by aviation chairman J.M. Guerrero, members David M. Sablan, Sen. Thomas Villagomez and Rep. David M. Apatang.