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USG allowed to continue ground-handling service
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Posted on Dec 14 2005
The Commonwealth Ports Authority has allowed USG Investments, Inc. to continue providing ground-handling services for Cape Air, while the company’s permit application remains pending for approval.
Newly installed CPA executive director Lee Cabrera said the agency has given USG Investments until Dec. 31 to correct certain deficiencies in its application.
While the permit application has yet to be approved or denied, Cabrera said the CPA allowed USG Investments to continue with its services for Cape Air to prevent disruption of the air carrier’s operations.
If USG Investments fail to timely correct the deficiencies, Cabrera said the CPA would have no choice but to deny the permit application.
USG Investments has until Dec. 31 to submit to CPA sufficient requirements related to the company’s insurance policy and minimum equity, among other required documents.
Earlier this month, retired CPA executive director Carlos Salas said USG Investments should cease from providing ground-handling services to Cape Air while the decision on the permit application remains pending.
USG president Herman Lieto had disclosed that his company began providing ground-handling services for Cape Air—a separate but partner company of Continental Micronesia in providing flight services on Saipan, Rota and Guam—beginning Dec. 1.
According to Lieto, his company provides Cape Air exclusive ground handling services in the CNMI, particularly those pertaining to passengers and baggage, as well as ramp services. He said the company’s contract with Cape Air, which would be effective for one year and renewable for up to three years, does not include aircraft maintenance and fueling services.
