JAL upbeat on tourist arrivals • Airline encouraged by 50 percent cut on passenger fees

Japan Airlines has vowed to bring in more tourists to the Northern Marianas after the Commonwealth Ports Authority decided to provide incentives to various carriers to increase arrivals.

The CPA board approved a 50 percent cut in departure and arrival fees effective Mary 1, 1999 through February 29, 2000 to airlines that can provide an additional 15 percent increase in the average number of passengers that they bring in to the CNMI.

“We are happy with the incentives and hopefully, it will help us bring in more passengers,” a JAL official said. Any savings during the period may be used by the airline to promote the Northern Marianas in Japan.

Since last year, JAL has carried out its own promotional campaign by offering additional chartered flights in a move to help bring in more tourists to the CNMI and save its huge investment on the island.

However, the Pacific Island Aviation has expressed disappointment on the failure of the ports authority to reduce the landing fees by 50 percent and provide incentive to airlines that will service new routes.

But this does not mean that PIA has backtracked from its plan to acquire a B727 aircraft to provide service from Saipan to Taipei and Manila as part of its expansion project.

“We are still discussing it with the other investors involved in the project. We are happy that the government is trying to do everything to help us,” said Bob Christian, PIA chief executive officer.

The proposed incentive for airlines that will service new routes would have given PIA some break to cover the huge cost of its operation for the first year. “When you calculate the return on investment, you take into consideration a number of factors such as the lease on the aircraft, payment for insurance and office space, hire additional people and high cost of fuel. It would have been better if the incentive we are asking would be given because it would have made the project more desirable,” he added.

Christian noted that the cut in fees offered by the ports authority will not really benefit PIA which provides interisland service due to the decline in visitor arrivals coupled with gloomy consumer outlook.

The Aviation Task Force headed by JM Guerrero has sought a reduction in landing fees to entice new airlines to serve new markets and use bigger aircraft.

Unfortunately, the CPA board did not grant such request due to the difficulty in providing equal incentives to the four airlines servicing the CNMI which are using various types of aircraft. Northwest is using a DC10, Continental is using a B727 and B757, Japan Airlines is using a B747, DC10 and B767 and Asiana is using a B767.

Beginning March 1, 2000, the ports authority will implement the new rates for the airport which was earlier suspended in a move to help the island’s main source of revenue recover from current slump brought about by Asia’s financial crisis.