CNMI, Northwest may deal

CNMI officials strongly indicated yesterday that they would likely approve a proposal by the Northwest Airlines to slash by almost 50 percent the landing fees and passenger facility charges in exchange for increased flights that is expected to pump in $23 million in fresh money into the local economy.

Executives of the airline company met with Gov. Pedro P. Tenorio, along with ports authority board chairman Roman S. Palacios and Aviation Task Force chairman JM Guerrero, to submit a package of proposals designed to give a lift to the slumping tourism industry.

Local officials are upbeat on the Northwest proposal after Continental Airlines, the region’s main air carrier, dropped the Osaka-Saipan route due to declining passenger haul.

Northwest promised to upgrade its DC10 service to the Northern Marianas by flying the 371-seater Boeing 747 aircraft to boost passenger arrivals by additional 49 daily. Conservative estimates show the increment in the Narita-Sapan route would impact the island economy $63,357 each day or $23.1 million each year based on the average money spent by tourist at $1,293.

Northwest proposal

Despite the odds confronting the tourism industry, Northwest said it would pursue the upgrade provided that the local government put in place incentives to resume the 747 flights.

“The (Saipan) route has not been profitable for (Northwest) in quite some time yet the Pacific Region believes if proper incentives were in place we could return to the 747 service,” the company said.

According to Northwest, keeping the landing fees and passenger use fee charges at current level would cost the airline $218,300 in additional expenses annually with the aircraft upgrade.

In a package of proposals submitted to the governor, Northwest is seeking landing fees equal to that of a DC 10 aircraft, reduction in arrival and departure fees and funding to market the islands.

The airline is proposing additional reduction in the current landing fees from .85 cents to .58 cents, arrival fees from $2.20 to $1.93, and departure fees from $5.80 to $5.09.

On top of this, Northwest is requesting $50,000 in marketing and promotional funding to support its program of bringing in more tourists onto the islands. The contribution, the company says, would ensure that Saipan will be included in marketing blitz such as sweepstakes programs to generate awareness about CNMI, joint hotel and airfare promotions to WorldPerks members, and wholesaler programs.

Local officials upbeat

According to Palacios, a meeting has been scheduled for this week between the task force and the Commonwealth Ports Authority to decide on the proposal.

“The government is supportive of this. I think it’s going to be a good news,” Palacios said.

In a separate interview, Guerrero said the task force “highly recommends” the Northwest package to bring back the allure of the islands as a tourist destination in view of the recent cutback in Continental’s air service to Saipan.

CPA and the Marianas Visitors Authority have been at loggerheads in the past because of the ports authority’s plan to increase landing fees to improve the agency’s diminishing revenues arising from flight reduction.

But CPA decided to put on hold the plan until year 2000 after representatives from the tourism industry lobbied to defer it in order to avoid further flight reduction.