CPA blames Continental for 23 percent drop in Saipan aircraft traffic

Aircraft traffic at the Saipan International Airport dropped 23 percent in March primarily because of Continental Micronesia’s decision to streamline operations in the Northern Marianas during the period under review.

Records obtained from the Commonwealth Ports Authority disclosed Continental Micronesia stopped the deployment of 83 flights into the Northern Marianas in March, which resulted to the dramatic decline in aircraft traffic at the Saipan International Airport.

CPA statistics showed landings made by carriers on Saipan dropped from 347 in March 1999 to 267 this year.

However, increased participation by another United States and other foreign carriers like Japan Airlines, Northwest Airlines and Asiana Airlines to CPA’s aviation incentive program triggered a modest growth in passenger traffic.

A report submitted to members of the CPA Board of Directors indicated the number of international travelers who disembarked from Saipan increased one percent, while deplanement figures soared seven percent in the same period.

Close to 40,000 passengers disembarked at the Saipan International Airport in March this year, higher by seven percent from the year-ago’s 36,497. During the same period, enplanement jumped to 43,147 from the previous year of the same month’s 43,147.

CPA said Japan Airlines has taken control of the market with the carrier’s market share shooting up by 13 percent during the first two quarters of the Fiscal Year 2000, while Continental Micronesia’s market share fell by a whooping 20 percent in the same period.

From October 1999 to March 2000, aircraft traffic at Saipan’s air transport facility went down by 22 percent to 1,588 landings from the previous year of the same semester’s 2,048.

Deplanement figures however soared 16 percent to 228,421 passengers from 197,634, while enplanement statistics also registered growth of seven percent to 260,910 from 244,140.

Aside from the increase in enplanement and deplanement figures, the recent implementation of new aviation rates hiked CPA revenues by 23 percent in March 2000 to over $1 million from $893,206.

The adjustment in airport and landing fees, which was implemented beginning March 1, 2000, was part of a recommendation by bond underwriter Ricondo and Associates to allow CPA to obtained rating for its airport bonds issued in 1998.

Airport revenues soared 16 percent since the beginning of the Fiscal Year 2000 compared with the year-ago level, from $5.782 million to $4.974 million.

March aviation revenues jumped 44 percent, thanks to the newly-implemented airport fees which resulted to a dramatic increase in several categories of fee collected by the ports authority.

The report noted international landing fees grew 56 percent, domestic landing fees by a whooping 99 percent. It added international enplaned fees shot up by 45 percent while domestic enplaned fees recorded a historic 44 percent increase.

International deplaned fees soared 17 percent and fuel flowage fee collections jumped 79 percent, according to the financial report submitted to members of the CPA Board of Directors.

In addition, revenue collected from non-aviation charges on the airport division that include car rental parking, Duty Free Concessionaire and ground rental climbed 13 percent, 10 percent and 23 percent respectively.

Between $1.3 and $1.9 million in total revenue is expected to be generated by the CPA from the increase in landing and passenger fees which the agency implemented beginning March 1, 2000.