Igisomar, Kilili discuss exception of cabotage in CNMI

Sen. Sixto Igisomar (R-Saipan) and U.S. Delegate Gregorio Kilili C. Sablan (Ind-MP) discussed the merits and pitfalls of having the Commonwealth exempted from federal cabotage laws to allow foreign airlines travel to or from Guam and the CNMI, according to letters between the two officials in recent weeks.

U.S. Sens. Lisa Murkowski (R-AK) and Maria Cantwell (D-WA) have introduced a bill—S.2360— that Igisomar believes would exempt American Samoa from cabotage and “allow foreign airlines to land on American Samoa and then another U.S. territory or Compact Impact Nation.”

Currently, cabotage law prevents foreign airlines form traveling solely between two U.S./territory airports, Igisomar said. The foreign airline must return back to a foreign point after landing at one U.S./territory airport.

Igisomar proposed that the bill be amended to provide the same exemption to the CNMI and Guam, as cabotage law applies to in the region.

“Since 2006 with the departure of Japan Airlines and other airlines, the CNMI has endured diminished air transportation traffic. I truly believe that with a cabotage exception, the CNMI can tremendously boost its air transportation traffic and revenue, and create more competition thereby driving down the airfare prices,” Igisomar said, requesting that Sablan offer an amendment to the bill to reflect these concerns.

But Sablan, in a letter to Igisomar on Feb. 4., attempts to corrects Igisomar’s understanding of the bill.

Sablan said the bill would not expand authorization to allow foreign airlines to fly between American Samoa and another U.S. territory or Compact nation, but would allow a foreign carrier to provide service solely between the American Samoa islands of Tutuila and Manu’a.

Sablan said this would be allowed without the requirement to have an emergency service waiver for the route renewed every thirty.

Still, he said, the Secretary of Transportation would be required to revoke the emergency service waiver for any foreign airlines in the event that a U.S. carrier entered the market.

“What you really seek is to exempt foreign airlines from federal cabotage laws altogether for flights to and from Rota, Tinian, Saipan, Guam, and international destinations,” Sablan said in his letter.

Sablan said he appreciated the frustration “we have all experienced” with the increased cost and diminished convenience of reliable air travel, but that lifting cabotage would not guarantee that a foreign carrier would enter the market or that a foreign carrier would duplicate the routes currently being served by domestic carriers.

Sablan said it is essentially—before changing the law—to understand fully the effect that competition or foreign carriers would have on domestic carriers. “I believe it would be a mistake to take any action that could drive out U.S. carriers, leaving Rota and Tinian without any air service at all or placing the Saipan-Guam route in the hands of a single, foreign carrier.”

Sablan said he would not want to move forward without input from local lawmakers, the governor, the Marianas Visitors Authority, and from local businesses that would be affected. He also suggested that Igisomar obtain the agreement of the government of Guam, so that all stakeholders agree with Igisomar’s position.