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Federal subsidies sought for air travel between Guam and CNMI



 By Pacific Island Times News Staff


Guam Del. James Moylan is proposing the inclusion of Guam and the Northern Marianas in the Essential Air Service, a federal grant program that subsidizes air services in the nation’s rural communities.

 

The fresh proposal, contained in a bill co-authored by CNMI Del. Gregorio Sablan, is aimed at reducing the cost of traveling between Guam and the CNMI.

Today, it costs nearly $500 for a round-trip ticket between the two territories.

 

Established by Congress, the EAS is being administered by the Department of

 Transportation. Its goal is to ensure small rural communities throughout the U.S. are getting air services.

 

Under the EAS, an airline can seek funding to help offset some of the airfare costs, which in turn would result in lower ticket prices.

  

“As Congress sets forth to entertain the FY25 Transportation Appropriations bill, the funding of the EAS will be included in the measure. Our office has submitted amendments to not only increase this funding but also add the Guam-CNMI route to the program, hence the timing of the legislation,” Moylan said.

 

“We have also reached out to the Defense Travel Agency to seek a report on the amount the Department of Defense spends annually on the flights between the two territories, as securing their support is paramount,” he added.


The new measure supplements Moylan and Sablan’s earlier request for a special cabotage exemption for Guam and the CNMI to allow foreign airline carriers to move passengers and cargo between the two U.S. ports. 


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Currently, United Airlines holds a monopoly on the Guam-Saipan route.


Moylan’s office said opening the skies would stimulate competition from carriers from Korea, Japan, and the Philippines, which would  assist in reducing

the costs of travel. 


The legislation was introduced last month, and efforts will be made to pursue an amendment in the upcoming appropriations processes as well.

 

“We are approaching the high costs of airfare from various angles and have created an extensive education campaign in Congress to state the case for 

Guam, which includes justifying both the cabotage exemption and the need

 for the EAS subsidies,” Moylan said. “Considering the limited funding in the EAS, we anticipate many challenges in the process but will continue to maintain the course.”






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