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PIA pullout ‘sad but not surprising’
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Posted on Jan 27 2005
The decision of the Pacific Island Aviation Inc. to pull out from its operations in the CNMI is “sad but not surprising,” according to governor press secretary Pete Callaghan. This also does not point to a trend of investors packing up, he added.
“There is no trend. The fact that one of our most successful businessmen just bought a hotel is a sign that our economy has grown. It’s a show of confidence in the local economy. The fact that PIA is leaving is sad but it’s not at all surprising,” said Callaghan.
He noted that it was a business call on the part of PIA amid competition with Cape Air, which flies the same route with more frequency and more airplanes.
Overall, he said that there are “signs of good times, not bad times.”
PIA, which has served the islands for 16 years, announced early this week that it would make its last flight on Feb. 9. It cited stiff competition in the market and high operation costs as the major reasons for its decision.
PIA competes with Freedom Air and Cape Air in servicing the Saipan-Rota-Guam route.
