CPA eyes extension of airline incentive program

The Commonwealth Ports Authority is eyeing the possibility of extending the implementation of a program that grants signatory airlines 50 percent off on landing and departure fees following encouraging arrival figures recorded since it took into effect last year.

CPA Executive Director Carlos H. Salas disclosed the Ports Authority Board of Directors has dropped strong hints it would back plans to extend the implementing date of the Airline Incentive Program which entices carriers to increase their average monthly arrival figures.

“The CPA Board of Directors appear to be receptive into plans at modifying or improving the Airline Incentive Program which will expire in October this year,” he said.

However, Mr. Salas stressed the extension of
the incentive program largely depends on the three-year passenger haul projections by United States and foreign airline companies.

He told an interview that both U.S. and foreign carriers currently providing air transport service to the Northern Marianas have been asked to submit a conservative projection of their respective passenger haul for the next three years.

Mr. Salas explained the ports authority is inclined at extending the program’s effective date beyond October 2000 provided conservative arrival projections by all carriers servicing Saipan indicate a significant increase.

He said the Asian economy has been rallying a little stronger, with indicators point to consistent and full recovery, which may mean positive signs for the Commonwealth’s travel industry and CPA’s coffers.

“The economy is rebounding rather slowly. We want to get a clearer picture of the arrival estimates for the next three years from industry experts in order for CPA to work at coming up with airport fees that are cost-effective both to us and the carriers,” Mr. Salas said.

He added discussions are now underway to make doing business with the Northern Marianas, and the CPA in particular, less expensive for all airlines that provide air transport services to the Commonwealth.

Mr. Salas projections on international traffic into the Northern Marianas would also clear the road for additional air transport services between Guam and Saipan, as well as between major international destinations in Asia and the CNMI.

He pointed out that moves to obtain conservative passenger haul projections from airline companies is a major part of the Commonwealth government’s efforts to explore alternative ways that will facilitate improvement in visitor traffic figures.

The ports authority will also base adjustment on airport fees to the number of passengers anticipated by airline companies to come to the Northern Marianas in the next three years. Carriers are asked to submit their projections within the week.

“CPA hopes that the CNMI can have a clearer picture of the kind of airport fees adjustments that will have to be made for the next three years. If passenger traffic improves, CPA will consider looking at the rates again to make it cost effective or less expensive to the airlines to come here,” he added.

The ports authority started giving perks to airline companies servicing the Northern Marianas in May 1999 that are able to bring up their arrival figures by 15 percent more than their current traffic load.

Primarily spurred by the Airline Incentive Program, total number of passenger arrivals at the Saipan International Airport soared 30 percent , from 33,093 in April 1999 to 42,999 this year.

From the beginning of the Fiscal Year 2000 up until April, CPA records showed the number of international passengers arriving at and leaving Saipan’s air transport facility exceeded the level registered during the previous fiscal year.

This, even as aircraft landings from international destinations that includes Guam dropped seven percent from 277 in April of FY-1999 to only 258 landings this year.

Total number of enplanement between October 1999 and April 2000 was registered at 301,920, up seven percent from the previous year of the same period’s 283,032.