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CPA airport revenue drops 6%
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Posted on Dec 14 1998
The aviation division of the Commonwealth Ports Authority generated some $655,632 operating revenues in November, a six percent reduction compared to the month of October primarily as a result of the continuous decline in visitor arrivals to the CNMI and the shutting down of operations of Marianas Air.
However, the marine division’s operating revenues for the same period registered a total amount of $285,000 or an eight percent decline compared to October which was due to the drop in gross receipts income, dockage and wharfage fees.
Operating expenses in the aviation division totaled $1,078,395 or a one percent increase from the month of October because of insurance premium payment. Likewise, the aviation incurred a net loss of $418,735 or 34 percent increase over October’s record.
As of Nov. 30, 1998, the cumulative balance of net loss already reached $731,136 which shows CPA’s financial difficulty in paying for its long-term debts.
As of last month, the aviation division’s working capital reserves totaled $4,689,654 or 10 percent drop from October. With only limited cash reserve available to the aviation division, the ports authority must look for other alternatives to prevent further shortfall and pay the bonds.
Based on the comptroller’s analysis, the cash will be depleted by the year 2000, thus, management must look for ways to further cut down on personnel cost.
In the marine division, operating expense amounted to $125,895 or a slight one percent increase from the October period. Net income at the seaport amounted to $166,880 for November or an 18 percent drop from October record primarily due to the decline in number of vessels calling the port.
As of Nov. 30, the balance of working capital reserves amounted to $4,369,505 pr a five percent decrease over October. According to the comptroller’s analysis, the ports authority’s capital reserves in the seaport will not be depleted if the ports authority will not use the funds for capital improvement projects.
