Mandarin may pull out of Saipan

Mandarin Air is studying the possibility of pulling out of Saipan due to heavy losses as a result of low passenger load but officials said they are still looking at two more options to save the airline’s operations on the island.

Tinian Dynasty Hotel manager Tom Liu said travel agents from Taiwan have decided they will no longer handle 100 charter seats for both the Monday and Friday flights because of low passenger load.

Mr. Liu said the five tour operators from Taiwan which took over the 100 airline seats per flight have suffered huge losses. Mandarin Air’s load factor ranges only from 50 to 70 percent.

But Mandarin Air Saipan Station Manager Charlie Ling said the airline may opt to continue with the twice-a-week flight even without the travel agents. Mr. Ling said Mandarin Air is also exploring a deal with China Airlines to save the operation on Saipan but he refused to provide details since it is still under negotiations.

Mr. Ling disclosed that Mandarin Air’s passenger load in December was only 52 percent, a big disappointment for the airline considering the fact that it was the holiday season. Mandarin Air, however, expects a full passenger load for the Chinese New Year.

Visitor arrivals from Taipei have been very low due to the slowdown of the Taiwanese economy and poor awareness of the Taiwan nationals on the CNMI as a tourist destination.

In contrast, neighboring island Guam has been attracting a huge number of Taiwanese tourists. Continental Airlines will be flying a total of five Taipei-Guam flights beginning June plus the four flights of Mandarin Air.

“I cannot understand why we cannot attract more of them to come here when the CNMI offers more with the different attractions the three islands Saipan, Tinian and Rota can provide to the tourists,” said Mr. Liu.

Tinian Dynasty previously takes charge of the Friday flight of Mandarin Air as it charter 138 seats of the airline. However, financial losses has led the hotel to drop the charter agreement with the airline.

Unfortunately, the Taiwanese travel agents are faced with the similar problem, making them decide to pull out of the charter agreement on Feb. 9, 2001.

The Marianas Visitors Authority has set aside a small amount of money for the promotion of the CNMI to Taiwan, one of its alternative markets.