CPA reports good, bad news

Total airport revenue declined by 14 percent during the first three months of fiscal year 2006, due in large part to a plunge in aviation and concession fee earnings.

According to the Commonwealth Ports Authority, its earnings from aviation plummeted by 18 percent, while its concession fee collections went down by 9 percent.

In a report to the CPA board last week, comptroller George Palican said that airport revenue in the CNMI totaled $2.8 million from October to December 2005—a 14-percent decrease from the same period in the last fiscal year.

He said that aviation revenue totaled $1.6 million, or $394,232 lower than in FY 2005, while concession revenues totaled $659,896, about $67,808 less than the previous year.

Rental and other non-aviation revenues totaled $370,068 or only $602 more than the previous year.

Palican said passenger and landing fees during the period totaled $1.6 million, which is nearly half a million dollars less than the previous year.

Concession revenues at the Saipan, Tinian, and Rota airports—prime concession, restaurant, car rental fees—totaled $659,896, which is 9 percent lower compared with the same period in FY 2005.

Rental and other non-aviation revenue—rental income, public and commuter parking, others—totaled $370,068, which is almost the same as the previous year.

Airport expenses totaled $2.9 million, a 13-percent increase compared with the same period in FY 2005. This increase is due to retirement expenses, repairs, and power billings, Palican said.

CPA spent over $2 million in airport personnel costs or $163,728 more than the first three months of FY 2005, while maintenance and operations costs totaled $834,642 or 26 percent more than the previous year’s.

Airport personnel cost includes $1.6 million for salaries and $438,447 in employee benefits. Non-personnel costs—staff training, travel, contracts, legal fees, insurance, supplies, utilities, communications, others—totaled $834,642.

In the same report, Palican said that cost per enplaned passenger increased 29 percent from $15.25 in December 2004 to $19.74 in December 2005 due to a 12-percent drop in enplaned passengers.

The 12-percent drop reflected a loss of 20,641 passengers, he said.

Deplaned passengers, meantime, decreased by 16 percent—a loss of 26,471 passengers.

Palican also reported that aircraft landings decreased by 11 percent, which means a reduction of 928 landings.

Aircraft landing weight decreased by 19 percent—a reduction of 29,536 tons, he said.

SAIPAN INCOME DOWN

Aviation revenues on Saipan totaled $2.6 million or 17 percent less than the previous year.

These included $1.6 million in aviation revenue, $625,063 in concession fees, and $334,278 in rental and other non-aviation revenues.

Saipan expenses totaled $2.3 million or 12 percent higher than the previous year.

Saipan’s net income totaled $298,958, which is 72 percent lower than FY 2005.

On Saipan, cost per enplanement/departures was $18.38 per passenger or 30 percent higher than the first three months of FY 2005.

Departures from October to December 2005 totaled 126,059 while arrivals totaled 121,704.

Landings totaled 4,257 and landing weights reached 105,508 tons.

TINIAN INCURS DEFICIT

The Tinian airport incurred a net deficit of $129,393 during the first three months of FY 2006, which is 13 percent higher compared with the same period in FY 2005.

Palican said total airport expenses totaled $225,263, which is $38,549 more than the previous year. These included $171,887 in personnel costs and $53,376 in maintenance and operating expenses.

During the period, Tinian airport revenues totaled $95,870 or 33 percent higher than the previous year.

Revenues included $66,268 in aviation fees, $13,863 in concessions, and $15,739 in rental and other non-aviation revenues.

Tinian’s cost per enplanement rose to $20.05 from $18.27.

ROTA DEFICIT UP 23 PERCENT

The Rota airport’s deficit during the first three months of the current fiscal year totaled $209,845 or 23 percent higher than in FY 2005.

Data showed that Rota airport’s expenses totaled $319,157 or $46,466 more than the previous year. These included $257,536 in personnel costs and $61,621 in maintenance and operations.

Rota’s revenues totaled $109,312, which is 7 percent higher than the previous year. Revenues included $68,291 in aviation, $20,970 in concessions, and $20,051 in rental and other non-aviation fees.

Rota’s cost per enplanement increased from $31.01 in December 2004 to $41.42 in December 2005.