Mandarin Air may drop nonstop Saipan flights

The Northern Marianas tourism industry is facing yet another blow.
Mandarin Airlines is eyeing the possibility of entering into a charter agreement with travel agents in Taiwan and close down Saipan station for good to diffuse airline operational costs.

Saipan Station Manager Charlie Ling, in an interview yesterday, disclosed top executives of the company are now discussing on the future of Mandarin Air’s regular Saipan-Taipei flights.

Once the Federal Aviation Administration maintenance programs of the three 737-800 aircraft are completed in May, Mandarin Air is scheduled to resume its regular flights to Saipan.

However, Mr. Ling stressed that Mandarin Air’s hierarchy is carefully keeping an eye on passenger haul from Taiwan to the Northern Marianas, which has not been so good in the last months.

Mandarin Air incurred huge revenue losses caused by its roundtrip flights. This, and FAA requirements, forced the carrier to temporarily suspend its twice a week flight schedule between Saipan and Taipei.

According to Mr. Ling, Mandarin Air will strictly review means to effectively tap the Taiwanese market for the Northern Marianas destination, to allow the airline to at least breakeven.

If current trend continues, Mandarin Air warned that the Saipan station may be permanently shut down and that the carrier will dispatch flights to the islands only on a charter basis.

Mr. Ling added discussions are also underway for a possible charter agreement with Saipan- and Taiwan-based travel agencies to halt further losses from the route.

This week, Mandarin Air decided to cancel its last flight out of Saipan due to low passenger load not enough to cover roundtrip expenses.

The aircraft will literally be dispatched out of Taipei empty and pick up only 30 passengers on Saipan. This prodded officials to cancel its March 23 flight and re-book passengers to Continental and China Air.

The Saipan-Taipei flight has been temporarily suspended due to incurred losses following termination of the air charter agreement with the Tinian Dynasty Hotel and Casino.

Since November last year, Mandarin Air incurred $12,000 losses per round trip flight on its operational expenses. The suspension will take effect on March 24 up to mid-June to prevent an estimated $20,000 per round trip flight revenue loss.

The suspension was immediately decided upon to take effect from March 24 to June this year to prevent an estimated $20,000 per roundtrip flight revenue loss.

During the suspension, CNMI is projected to lose an estimated 30 flights and over 4,300 passengers.

In January this year, Mandarin Air enplaned 822 passengers and deplaned 708 while February pegged an enplanement of 886 and deplanement of 872. Records disclosed an estimated 62 percent and 65 percent passenger load for the last two months.

Mandarin Air officials decided to suspend operations starting March to June, believed to be the leanest and slowest season for tourism industry.

However, Mr. Ling assured that the suspension is only temporary to prevent aggravated revenue losses and flights will resume after maintenance operations during summer vacation. (EGA)