CPA in process of applying for federal subsidy

The Commonwealth Ports Authority has taken the first step in applying for federal subsidy under the Department of Transportation’s Small Community Air Service Development Program, which could provide funding to CPA for air carrier revenue guarantees, marketing programs, and other support for improving service for Rota and Tinian.

In response to Delegate Gregorio Kilili C. Sablan’s assurance that he would back CPA if it decides to apply for the program, CPA chair Kimberlyn King-Hinds informed the congressman that CPA is currently preparing its application for the grant.

“In regard to the Small Community Air Service Development Program, CPA is in the process of preparing its grant application, and that application will be shared with you once it is completed. We look forward to incorporating your valuable input,” she said.

The CPA chair said federal subsidy through various programs offered by the U.S. Department of Transportation like the SCASDP would establish affordable and reliable interisland air travel by subsidizing commuter and certificated air carriers to serve the Rota and Tinian airports.

She added that being granted this federal subsidy would be the only long-term solution to its current dispute with the CNMI’s sole interisland air service provider, Star Marianas Airlines inc.

In a previous article on the Saipan Tribune, following the recent suspension of flights by Star Marianas due to a fee assessment dispute, CPA reached out to the U.S. DOT, requesting it extend the eligibility for federal subsidy under their many programs.

In response to King-Hinds’ letter to the U.S. DOT, Sablan recommended that CPA apply for SCASDP and should they do so, he would back their application with the U.S. DOT.

“Upon receipt of your letter with your request that I kick-start federal assistance, congressional staff contacted the Department of Transportation and confirmed the Commonwealth has never submitted SCASDP applications for any of the three airports operated by CPA, even though you mention the program in your letter as having the potential to improve air service and lower costs for Rota and Tinian. So, I respectfully recommend that you apply for these federal funds and share your application with me, so I can offer my support to the Department of Transportation,” he had said.