Airport revenue up $1.6M; seaport down 12 pct

In the first six months of the current fiscal year, the Commonwealth Ports Authority posted a significant $1.6 million increase in its airport revenue. However, the agency’s seaport income went down by 12 percent during the same period from October 2008 to March 2009.

The increase in the airport’s current revenues was attributed to the higher fees being enforced and the termination of the airlines incentive program.

Saipan Tribune learned that total airport operating costs decreased by $97,000, reflecting the austerity programs being implemented, minus increased maintenance costs.

This has resulted in an operating income before depreciation of $917,000 and an increase of nearly $1.8 million over the prior year.

Documents showed that the airport’s income before depreciation totaled $1.512 million, significantly better than last year’s $268,000.

Despite this overall increase, Rota and Tinian airports continue to generate sizeable losses, which are estimated to reach $1 million for the full year.

Additionally, while revenues increased greatly, the amount of collection declined by nearly 21 percent, which represents a true decline in the number of passengers.

At CNMI seaports, revenues are down 12 percent or by $352,000. However, total operating costs also declined by 30 percent, or $367,000.

Non-operating cost was virtually the same at $1.1 million and the resulting net income before depreciation increased slightly to $482,000.

Like the airports, the seaports of Rota and Tinian vastly underperformed the Saipan facility, primarily due to limited revenues and the high cost of personnel.

CPA management said that while the importance of airports and seaports on these two islands is unquestioned, the financial subsidy paid by Saipan is growing.

CPA management and the board of directors said they need to consider strategies that can reduce this subsidy amount.

CPA management also disclosed that while progress has been made, the agency still has to meet the required ratio for its bond indenture, based on the six-month data.

Currently, the airport ratio is approximately .90; the ideal ratio is 1.25.

It is hoped that with the additional flights beginning this month, progress can be made to reach the ratio.