By Ron Rocky Coloma
Star Marianas Air, a commuter airline that provides passenger and air cargo service in the Northern Marianas, has issued a notice of its intent to terminate its air services to these locations effective Oct. 15.
This decision was driven by the unsustainable fee structure currently imposed by the Commonwealth Ports Authority.
“The broad definition of maintenance and operation expenses, lack of detailed cost allocation and ambiguous treatment of common use areas result in fees that do not accurately reflect our actual usage of airport -facilities and services,” Robert F. Christian, chairman of the Star Marianas’ board of directors, said in a letter to CNMI officials.
The letter was addressed to CNMI Gov. Arnold A. Palacios, Tinian Mayor Edwin P. Aldan and Rota Mayor Aubry M. Hocog.
Star Marianas provides interisland flight service for Saipan, Tinian, Rota and Guam. Besides the scheduled flights, Star Marianas also offers charter service.
As the sole domestic carrier operating at Tinian and Rota airports, Star Marianas Air bears an inequitable share of the airport’s costs. The pricing structure, intended for multiple airlines of varying sizes, is deemed unfair in their unique situation.
“Furthermore, the lack of transparency in cost allocation raises concerns about cross-subsidization, where we may be paying for services primarily benefiting larger airlines that are not currently operating at the airport,” Christian said.
“This is particularly evident in the inclusion of ARFF fees at airports where we operate aircraft that do not require such services, effectively subsidizing ARFF costs for marketing purposes or for other airports like Saipan, where larger aircraft necessitate these services," he added.
The CPA’s authority to make mid-year adjustments and conduct year-end true-ups without clear criteria or airline input creates financial uncertainty for Star Marianas Air, Christian said.
The Tinian and Rota airports serve communities that rely heavily on Star Marianas for essential transportation.
“The current fee structure jeopardizes our ability to continue providing this vital service, potentially isolating the community and hindering economic development,” Christian said.
The airline has called on the administration to engage with the CPA to facilitate a dialogue aimed at establishing a transparent, equitable and sustainable fee structure.
Christian emphasized the need for immediate intervention to address this issue and ensure that air services can continue without disruption. Star Marianas Air is prepared to work collaboratively with all parties involved to find a resolution that benefits the entire community.
“We remain steadfast in our commitment to providing safe and reliable air service to the airports in the CNMI, and we are not seeking subsidies,” Christian said.
“However, the current fee structure, which is both opaque and unpredictable due to decisions made by the local government, creates unacceptable risks that jeopardize our ability to operate sustainably. This arbitrary and capricious fee structure is a direct result of the Commonwealth Ports Authority's actions and decisions,” he added.
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