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Mobil urged to cut aircraft fuel costs
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Posted on Jan 25 2006
Gov. Benigno R. Fitial has asked Mobil Marianas to help the local tourism industry by reducing the cost of aviation fuel being sold at the Francisco C. Ada/Saipan International Airport.
Fitial said that several airlines from Japan and other Asian destinations are interested in introducing flights to the Marianas. But the carriers, whose names he did not disclose, could not finalize the plan due to the high fuel cost.
“I have told Mobil that I need their help. I have asked them to help us in our efforts to bring new airlines to the CNMI by reducing the cost of fuel,” Fitial reported.
Saipan is facing huge airlift capacity cuts following decisions by Japan Airlines to pull out and Continental Micronesia to cut back services.
JAL was enjoying high load factor when it decided to withdraw regularly scheduled flights to Saipan, effective Oct. 4, 2005. The airline cited several reasons for its action: low profits on leisure passengers, low net pricing, Saipan’s crisis sensitivity, high operating costs, and the carrier’s selling off of its old DC-10 and 747 aircraft, which are used on the CNMI routes as part of JAL’s restructuring.
Continental has also cut its nonstop flights from Taiwan and Hong Kong, and reduced flights between Guam and the CNMI.
One response to the reduced capacity has been formation of a local charter carrier named Air Saipan, which hopes to launch flights between Saipan and Japan by March with two wet-leased Boeing 757s.
