TO REDUCE AIRPORT FEES CPA opens dialog with Legislature, airlines

The Commonwealth Ports Authority has opened communication lines with the CNMI Legislature and airline companies servicing the Northern Marianas in fresh efforts to reduce existing rates at the Saipan International Airport, according to Executive Director Carlos H. Salas.

Mr. Salas said CPA has the capability to reduce Saipan airport fees but only if the CNMI Legislature would earmark funds to finance and subsidize the operation of both West Tinian and Rota International Airports.

“It is obvious that CPA can reduce airport rates so long as we receive government subsidy for the Tinian and Rota airports.
We have opened dialog with the legislators about the idea,” he told reporters in an interview.

Mr. Salas said the discussions with the Legislature involve identifying sources of funds that will be tapped to subsidize the operation of the two islands’ air transport facilities.

“We are still trying to work things out and see where this money can come from, and if the Legislature can truly help the CPA, and ultimately, the airlines and the travelers,” he added.

Mr. Salas is hoping to reconvene meeting with CNMI legislators and airline companies by middle of next month or early September.

Members of the House committee on commerce and tourism are now deliberating on the ports authority’s request for government funding to enable the agency to adjust airport fees as called for by airline companies servicing the islands.

“The legislature promised to work together with the CPA and airlines, and it is where it stands right now. The committee is now identifying the source of the money to come out with the subsidy,” Mr. Salas said.

He added the task will prove to be very difficult judging from the current level of revenues generated by the CNMI government. “If we are able to get the House of Representatives agree on it, we still have to sell the idea to the Senate and the governor.”

Ultimately, CPA’s goal is to make airport fees inexpensive to the airline companies, which may translate to cheaper airline tickets to the Northern Marianas, thereby helping in the revitalization of the local tourism industry.

Mr. Salas said CPA needs at least $1.7 million in annual legislative appropriations to reduce current airport charges which carriers claim make air transport service to the Northern Marianas more costly than in other destinations in the region.

He said CPA is mandated by existing laws to administer all three airports in the Northern Marianas which reflect a reasonable amount in fees collected from airline companies servicing Saipan.

Because of the agency’s mandate, Mr. Salas admitted that Saipan International Airport is currently subsidizing the expenses incurred in the operation of both Tinian and Rota air transport facilities.

He explained the ports authority is required by local laws to cover the expenses for the administration and operation of the three NMI airport facilities, adding that current enplanement and deplanement figures warrant the adjustment in CPA aviation fees.

CPA Board of Directors and management are likely to reduce current airport fees if it is able to receive funding from the CNMI government to subsidize the expenses for operating Rota and Tinian airports.

Mr. Salas added that unless passenger and aircraft traffic increase or the CNMI Legislature earmarks at least $1.7 million in annual subsidy to the agency, CPA’s hands are tied in reducing landing and terminal fees at the Saipan International Airport.

Before deciding on proposals from its financial consultants to raise airport fees, CPA officials sought the support of the CNMI Legislature to help alleviate the agency from a deeper financial crisis.

CPA has actually suspended the implementation of the new rates from October 1999 to March 2000, pending pledges from the Legislature of annual government subsidy.

CPA Board Chair Roman S. Palacios said they will be meeting with the leadership of the Legislature to discuss the inevitable need by the ports authority to obtain funding from the government or it is not likely to heed to the carriers’ request for a reduction in landing fees.

Mr. Palacios, who is also a member of the Aviation Task Force, said CPA is also trying to protect the interest of the program initiated by the Marianas Visitors Authority and the task force to increase visitor arrivals and encourage other foreign carriers to service the CNMI respectively.