CNMI may bring case vs Continental to IAGI

The CNMI government may be forced to bring the problem it face on the unavailability of sufficient direct international flights between Saipan and Asian countries to the federally-established Inter-Agency Group on Insular Affairs.

If this happens, the island’s air transport service woes will be the first problem to be brought to the attention of the IAGI, a high level federal group created by the Clinton Administration to help insular areas achieve economic growth.

The Commonwealth Ports Authority is determined to solicit support from the Office of Insular Affairs to block the granting of an authority by the U.S. Department of Transportation for Continental Micronesia’s continued treatment of Guam and Saipan as co-terminals.

CPA Board Chair Roman S. Palacios said assistance of the IAGI may be tapped since the absence of direct international flights between Asian countries and Saipan have been adversely affecting the economic stability of the Commonwealth.

Mr. Palacios cited the volume of international passengers who arrived on the island via Continental Micronesia during the Calendar Year 1999, which is almost 50 percent lower than the figures recorded in 1997.

Statistics obtained from the ports authority disclosed that Continental Micronesia reduced its services to Saipan by 64 percent between 1997 and 1999, bringing only 74,000 passengers into the CNMI last year.

In 1997, Continental Micronesia had more than 700 direct Japan-Saipan flights each year. At present, the airline company does not operate even a single direct flight between Saipan and Japan.

CPA studies 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.

Mr. Palacios said the continuous decline in visitor arrivals to the Northern Marianas have already dislocated more than 2,500 tour-related businesses since 1998.

This translated to thousands of jobs lost in the local tourism industry alone, excluding other job opportunities from other sectors that are dependent on the travel sector.

CPA last week sought the support of Insular Affairs Director Danny Aranza and the CNMI Washington Representative to boost its opposition on Continental Micronesia’s application to renew its authority to treat Guam and Saipan as co-terminals.

In his letter to Mr. Aranza, Mr. Palacios underscored the tremendous economic losses suffered by the Northern Marianas from Continental Micronesia’s decision to abandon direct flights between Saipan and major Japanese cities.

The ports authority is opposed to the application of the Micronesian carrier to renew its authority to operate on Route 171, Segment 9, or between Saipan/Guam and Sapporo/Sendai, Japan.

CPA wants the U.S. transportation department to recognize Guam and Saipan as separate destinations that should receive separate direct air transport services from Continental Micronesia.

Treating the two islands as co-terminals does not guarantee direct flights between the two Japanese cities and Saipan. The current arrangement makes it appear that a service to either Saipan or Guam is a service to both islands.