CPA beefs up efforts for gaming activities at airport

In its bid to increase non-aviation revenues in order to reduce airport charges, the Commonwealth Ports Authority is mopping out plans to provide casino-gaming facilities at the West Tinian International Airport.

Board Chair Roman S. Palacios said CPA has been informed by the Tinian Casino Gaming Control Commission that a license from the agency is needed only when the activity is going to be held at a hotel-casino complex.

Mr. Palacios said TCGCC has made it clear that the Tinian Casino Gaming Control Initiative does not include gaming activities in airports, thereby, making it easier for CPA to pursue the proposed revenue-generating project.

However, CPA was advised that amendment to the existing Initiative appears necessary before the agency can go full blast in its proposed casino gaming activities at the West Tinian International Airport.

“We have been in close coordination with the Commission because we want to know what else needs to be done to allow us to hold such an activity at the airport because it’s going to be another non-aviation revenue source for CPA,” said Mr. Palacios.

However, installing gaming machines in all three CNMI airports may suffer a setback due to existing prohibitions contained in CPA’s regulations and the Master Concession contract with Duty Free Shoppers.

CPA legal counsel Jose S. Dela Cruz previously explained there would be a need for the ports authority to amend its existing rules and regulation because it prohibits the installation of any gaming devise in any of the CNMI air transport facilities.

If CPA is serious about its plan to install gaming machines at the airports to increase non-aviation revenues, then the Board of Directors and the management should start looking at amending the rules and regulations, Mr. Dela Cruz told a board meeting.

Financial consultant Rex I. Palacios also warned the CPA Board and management that the current agreement with DFS may get in the way, since the retail company holds the master concession contract for all CNMI airports.

The ports authority is exploring all possible ways to increase its non-aviation revenues in order to subsidize operations, thereby, being able to cut down airport charges which have been the subject of major concerns raised by CNMI signatory airlines.

CPA has rolled back airport departure facility charge from $8 to $5.79 per passenger but only until October 31, 2000 in efforts to prevent any adverse impacts it may have on the agency’s 1998 bond indenture obligation.

The rollback will result to substantial savings on the part of the airline companies without adverse impact on CPA’s capabilities to meet the requirements set by the 1998 airport bond agreement.

The rollback is retroactive to March 1, 2000 although airlines are not getting cash refunds for the amount that they have paid CPA in excess of the rolled back $5.79 per passenger fee.

A study on the possibility of a rollback in passenger departure fees from $8 to $5.79 was carried out, following complaints by airline companies of the restrictively high airport charges in the CNMI.

The study emphasized that CPA’s financial capability to continue meeting the bond indenture requirement will not be adversely affected by a reduction in fees but only if the rollback is implemented until the end of October.