‘Remove inter-island passenger facility fee’

Led by the Rota and Tinian delegations, senators have expressed their strong opposition to the Commonwealth Port Authority’s upcoming implementation of a passenger facility fee for inter-island flights.

“To our knowledge, nowhere in the world is such a charge imposed that requires passengers to pay facility charges for travel within a state, country, or territory,” said the senators in a letter to CPA board chair Jose Lifoifoi and CPA executive director Carlos H. Salas.

The letter, dated Dec. 3, 2004, was signed by Senate President and Tinian senator Joaquin G. Adriano, vice president Diego Songao of Rota, majority leader Paul Manglona of Rota, Sen. Henry San Nicholas of Tinian as well as Saipan senators Thomas P. Villagomez and Luis Crisostimo.

Tinian senator Joseph Mendiola is currently off-island for medical reasons.

Adriano said the implementation is bad timing as it would discourage visitors from inter-island travel.

“At a time when the CNMI has began to increase its efforts in promoting itself as a multi-faceted travel destination, the PFC will discourage visitors from inter-island travel,” the senators said, noting that many visitors to Rota and Tinian must transit through Saipan.

In effect, these visitors would be charged four times for their flights into, within, and departing the CNMI.

Adriano said that Tinian, in particular, can ill afford such a surcharge fee during this time of economic hardship.

“I insist that CPA remove the PFC for travel within the CNMI,” said Adriano.

He said the Senate will soon introduce legislation that would prohibit semi-autonomous agencies from implementing fees and surcharges without the consent of the Legislature.

“This would eliminate what I believe are arbitrary charges imposed on the public,” said Adriano.

The CPA earlier said that passengers departing from any Northern Marianas airport—both international and inter-island—will pay a new $4.50 charge by Jan. 1, 2005.

Salas said the U.S. Federal Aviation Administration has authorized CPA to impose the passenger facility charge.

Airlines companies would collect the fee through sold airline tickets.

The fee is similar to departure/terminal fees collected by other airports abroad, Salas said.

He said departure/terminal fees being collected in the Philippines and Palau amount to $10 and $20, respectively.

Salas said the $4.50 collection would provide the 10-percent matching fund required of CPA for its airport improvement projects under the FAA and the U.S. Department of Transportation.

Funds that would be generated through the PFC would also help CPA meet its debt service obligation.

CPA said that the charge is “minimal,” as compared with the multi-million-dollar projects CPA is able to undertake using federal funds.

CPA further said that the implementation of PFC is part of the rate study conducted by Ricondo & Associates in an effort to help CPA meet its debt obligations. In the last two years, CPA was placed on credit watch by the Fitch and IBCA rating agencies for its failure to meet its financial responsibilities.