Continental reduced flights to Saipan by 64% •CPA says reduction warrants protest to DOT

Saipan has lost at least 64 percent of the total air transport services received by the Northern Marianas in 1997 due to the decision of Continental Micronesia to abandon all direct international flights to the island last year.

Government statistics disclosed Continental Micronesia reduced its services to Saipan by 64 percent between 1997 and 1999, bringing only 74,000 passengers into the CNMI last year.

The Commonwealth Ports Authority carried out a closer study of the carrier’s passenger haul since 1996 to support the protest it filed before the United States Department of Transportation, according to Board Chair Roman S. Palacios.

In 1997, Continental Micronesia had more than 700 direct Japan-Saipan flights each year. The carrier does not currently have even a single direct flight between Saipan and Japan.

The ports authority’s study noted a declining trend in the volume of passengers arriving on Saipan on board Continental Micronesia beginning 1996.

Initial results of the study, conducted by CPA financial consultant Rex Palacios, noted that Continental Micronesia’s passenger haul dropped by 23 percent from 166,000 to 127,000 during the period covering calendar years 1996 and 1997.

In 1998, the volume of passengers brought in by the carrier to Saipan is lower by 23 percent compared with the previous year’s level, from 127,000 to 98,000.

The figure dipped further by 25 percent last year, totaling only 74,000 passengers by end-December 1999.

CPA Executive Director Carlos H. Salas said Continental Micronesia downsized its air transport services to the Northern Marianas by seven percent during the period covering 1996 and 1997.

The following year, the airline company reduced its direct flights to Saipan by a whooping 43 percent, then again in 1999 when Continental slashed services to the island by a painful 37 percent.

Marking a first in CNMI history, CPA wrote the U.S. Department of Transportation decrying Continental Micronesia’s treatment of Saipan and Guam as co-terminals which CNMI officials claimed has adversely impacted CNMI’s tourism industry.

Mr. Palacios said the ports authority could not rally behind Continental’s application to renew its regular flights to Sapporo and Sendai in Japan since this does not mean there will be direct flights between the Japanese cities and Saipan.

This is because the carrier’s renewal application continues to treat Guam and Saipan as co-terminals.

The Micronesian islands’ flag carrier is seeking to renew its five weekly Saipan-Guam-Sapporo flights and daily Saipan-Guam-Sendai air transport service.

Under its existing authority, Continental Micronesia can operate air transport service between Saipan and Guam and Sendai and Sapporo, the two islands being treated as co-terminal points.

The current arrangement makes it appear that a service to either Saipan or Guam is a service to both islands.

The ports authority is asking the transportation department to recognize Saipan as a separate destination from Guam, each deserving its own independent service by Continental Micronesia.

While CPA admits that CNMI, Guam and the carrier have taken advantage of the arrangement in the past through direct flights to both Guam and Saipan, Continental Micronesia has since then stopped providing direct international flights to and from the Northern Marianas.

Mr. Palacios said Continental Micronesia’s decision to drop all direct international flights to and from Saipan resulted in an economic tumble which continues to have a profound and lasting effect in the CNMI’s ability to function as a tourist destination.

Mr. Salas said granting a blanket authority to any U.S. carrier to provide service to Guam and Saipan as co-terminals is a genuine disservice to the people of the CNMI who should be allowed to have direct service from any U.S. carrier willing to accept Saipan-only authority.