CPA’s aviation revenues up 75 percent

Operating revenues of the aviation division jumped by 75 percent in April amounting to $927,441 compared to the same period last fiscal year, according to the Commonwealth Ports Authority.

Based on CPA’s monthly financial report, both Japan Airlines and Asiana Airlines registered an increase in passenger arrivals despite the 14 percent cumulative decline on departing international passengers brought about by the low traffic of Continental Airlines and Northwest Airlines.

For the past seven months of fiscal year 1999, the ports authority was able to significantly reduce the operating expenses excluding the non-cash items by over $1.3 million compared to the same period of fiscal year 1998. This was also brought about by the strong support of the employees on the cost-cutting measures implemented by management, the ports authority said.

Net loss increased to almost $1 million in April due to the interest payment to bondholders and the payment to Pacific Drilling Ltd., contractor of the sewer line project.

As of April 30, 1999, the balance of working capital reserves amounted to $5 million or a 5 percent increase from its balance in March 1999.

With the 72 working hours per pay period plus the 50 percent reduction on health benefits, the overall operating budget was reduced by $405,632 from the original budget level of $9.7 million.

On the other hand, operating revenues of the marine division jumped 11 percent compared to the same period in fiscal year 1998 mainly due to the embarking passenger fees and land rental. The combined inbound and outbound revenue tonnage of the marine division declined 27 percent.

Inbound revenue tonnage jumped by 93 percent while outbound revenue tonnage increased by 24 percent.

Operating expense excluding noncash items increased by $25,069 due to the recently held inauguration ceremony of the $42 million Saipan Harbor Improvement Project.

Net loss of $976,541 was incurred by the marine division as of April 30, 1999. Compared to the same period in fiscal year 1998, the net loss jumped by 107 percent due to the payment of interest expense of $1,080,800 to the bond holders which was due on March 15, 1999.

Operating activities provided a net cash of $188,513 for the month of April. As a result of the eight hours reduction every pay period as well as the 50 percent cut in health benefits, the overall budget operating expense realized savings of $5,376 or 1 percent below the budget.