MVA vows support for Air Saipan if project succeeds

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Posted on Dec 29 2005
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The Marianas Visitors Authority vowed yesterday to throw its full support behind Air Saipan, Ltd., once the company realizes its plan to introduce flight services to Saipan.

MVA board chair David Sablan also said the agency would develop travel packages from Australia, which Air Saipan plans to tap, among other tourist markets.

“I hope it [Air Saipan] develops into something real. We need all the help we can get,” Sablan said.

Citing reports that Air Saipan already has two Boeing 757 jets for its planned charter services, Sablan said the company’s move is a big step to keep the CNMI’s tourism industry moving.

He noted that the company would need support not only from the MVA, but also from other government agencies, including the Commonwealth Ports Authority and the Governor’s Office. If the company wants to tap the Japanese market, Air Saipan needs the approval of the U.S. Department of Transportation.

“I hope that the new [incoming] administration [of Gov.-elect Benigno Fitial] will have time to meet with these people [Air Saipan stakeholders] and find out what government help they need to fulfill their project,” Sablan said.

He said the MVA would also review the company’s strategic plan. “We will provide logistical support to ensure that they succeed. Their success will also be our success.”

Air Saipan’s Dave Raybould disclosed on Wednesday that the company now has two 757 jets and placed its initial investment at $3 million. He said the investment figures would rise in the coming weeks, as the company wants to be a full-fledged airline that will serve as Saipan’s flag carrier.

“Initially, we wanted to cover the shortfall in JAL’s pullout by operating charter flights to the CNMI from Japan. Someone needed to offer more flights, as the Japanese still wish to travel to Saipan. But talking to local businesses has led us to try to take it a few steps further,” Raybould said Wednesday.

“As our costs are a lot less than the big carriers and combining our feeling that Saipan as a destination has been under-marketed in the international marketplace—there was understandably little need with the amount of regular Japanese tourists—we feel there is more to be gained with a long-term approach,” he added. “Hence, we will initially operate as a simple charter service while at the same time applying for our Air Operating Certificate to become a full-fledged carrier.”

According to Raybould, the company chose the name Air Saipan to enhance the destination’s international image. Besides Raybould, who takes charge of the company’s Asia-Pacific operations, other company stakeholders include Dean Mills, chairman and majority shareholder; and Craig Champion, who takes charge of sales and marketing.

Raybould said he and his business partners have wanted to come up with the Air Saipan project since they heard about the pullout of JAL’s regular flights to Saipan. JAL’s pullout instantly resulted in a significant drop in Japanese arrivals to the CNMI, hurting the islands’ tourism industry.

MVA to develop Australian packages

MVA’s Sablan said the agency would develop travel packages from Australia to Saipan, just as it has been developing Russian packages.

“The time is right to look at the Australian market. With the help of Air Saipan, we can bring in Australians to Saipan,” Sablan said. “We would like to see tourists from Australia.”

Sablan noted that Australian travel to Bali, Indonesia has tremendously dropped following the terrorist attacks on the Asian destination, providing an opportunity for Saipan to tap the market.

Raybould disclosed that the company has been meeting with several travel agents in Australia, which it believes as one that could become an alternative source of travelers for the CNMI.

While Raybould claimed that Air Saipan’s core objective would be to pick up travelers from Japan, the company would also look into servicing other markets, such as China, Hong Kong, Taiwan, and the Philippines.

Commonwealth Ports Authority executive director Lee Cabrera confirmed Tuesday that Air Saipan has signified its intention to provide flights services to Saipan.

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