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CPA extends USG’s temporary permit
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Posted on Jan 03 2006
The Commonwealth Ports Authority has extended the effectivity of USG Investments Inc.’s temporary permit to provide ground-handling services for Cape Air until the end of January.
The temporary permit was supposed to expire on Dec. 31, 2005—the deadline the CPA had given USG to address deficiencies in its application for a ground-handling permit.
CPA executive director Lee Cabrera said USG timely submitted documents required of it by the end of December. However, the CPA has asked USG to clarify certain requirements, especially those related to the company’s insurance policy.
Cabrera gave USG until Jan. 10 to address deficiencies in its application for a ground-handling permit.
USG 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, 2005.
According to USG president Herman 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.
Initially, then CPA executive director Carlos Salas said USG should first wait for an approval of its ground-handling permit application before actually providing services to Cape Air.
The CPA, however, later gave USG until Dec. 31 to correct certain deficiencies in its application and allowed the company to continue with its ground-handling operations for the airline company.
CPA’s Cabrera said his office extended the validity of USG’s temporary permit for another 30 days.
