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Subsidy urged for Rota-bound planes
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Posted on Jan 27 2005
Rota Mayor Benjamin Manglona yesterday urged the government to consider giving any form of subsidy or incentive to the two airlines that will continue flying to Rota after Pacific Island Aviation ceases operation on Feb. 9.
Manglona said PIA’s decision to suspend scheduled flight operations between Saipan, Rota and Guam should serve as a wake-up call for government to assess the support being provided to airlines that operate in less developed areas.
“I think this is an opportune time for the government to look into the possibility of giving some kind of incentive to encourage airlines to continue service to economically depressed areas,” said Manglona.
The mayor said he was saddened by the decision of PIA, which has served the Marianas for 16 years. He acknowledged, however, that PIA’s pullout was a strictly business decision that everyone has to respect.
“As much as I would like to ask PIA to continue operations, I have no control over their decision,” he said.
Still, he said he was worried that PIA’s move will reverse what little growth in tourist arrivals Rota has seen in the past months.
“I just hope the two remaining airlines will increase their flights to Rota to compensate for the seats capacity we’re losing with PIA’s pullout,” he said.
PIA has cited stiff competition in the market and high operation costs as the major reasons for its decision to cease operations in the Marianas.
In a news statement, the airline maintained that there are too many airlines currently competing for a limited number of customers available in the market. Also servicing the Saipan-Rota-Guam route are Freedom Air and Cape Air.
“With Continental introducing Cape Air’s service (which is similar to the service being provided by PIA), there is too much capacity in the market to justify the costs associated with both companies’ need to service overhead cost,” the airline said.
About 60 employees stand to lose their jobs when PIA suspends flight operations between Guam and the Northern Marianas on Feb. 9.
Stowell said some of the current employees will be retained to help PIA refurbish the aircraft. The carrier is now exploring opportunities in other travel markets, he said.
