By Bryan Manabat
Saipan-- Star Marianas Air on Monday said it would ask the Federal Aviation Authority to launch an investigation into the Commonwealth Ports Authority for allegedly imposing “coercive fee-setting practices” that circumvent federal rules.
“It is abundantly clear that the CPA, in coordination with its legal counsel and consultants, has engaged in a deliberate scheme to bypass federal fee-setting regulations, coerce airlines into compliance with non-compensatory fees, and subvert the principles of fairness mandated by the Federal Aviation Administration,” said Robert F. Christian, Star Marianas chairman.
In a letter to Jose Ayuyu, CPA chairman, Christian threatened to take legal action if the agency failed to take immediate corrective action on its rules.
Star Marianas, a Tinian-based airline that provides commuter service in the CNMI and Guam, has been at odds with the CPA over the airport fee structure.
The airline is disputing the $1.2 million in arrears, which the CPA tried to collect from the company for the use of airport facilities on Saipan, Tinian and Rota.
Christian earlier said the airline would terminate its operations by Oct. 15, but later reconsidered the plan to shut down following a meeting with Gov, Arnold Palacios and Lt. Gov. David M. Apatang.
However, Christian remains disgruntled with CPA’s rules.
He said CPA's policy requiring airlines to "accept all rules and regulations, including the fee-setting methodology, upon issuance of a letter of authorization, is a blatant act of coercion designed to eliminate any opportunity for airlines to negotiate or challenge its terms.”
Christian said CPA's policy "has created a scenario in which airlines are left with no choice but to accept the CPA’s demands or risk losing access to critical airport infrastructure. This is not only coercive but represents an abuse of regulatory power and authority.”
“It is increasingly apparent that the CPA, its legal counsel, and its outside consultants are colluding to impose a fee structure that not only circumvents federal regulations but also serves their mutual financial interests at the expense of the airlines," Christian said.
The airline executive noted that the rate book “includes services and charges for facilities that are either not used by airlines or are grossly inflated, with the clear intent of imposing a non-compensatory fee structure in violation of federal law.”
The airline executive noted that the rate book “includes services and charges for facilities that are either not used by airlines or are grossly inflated, with the clear intent of imposing a non-compensatory fee structure in violation of federal law.”
“By using the LOA process as a tool to force compliance, the CPA is attempting to legitimize non-compensatory fees without following the established federal process of mutual agreement. This is an abuse of power, and it is evident that the CPA, its legal team, and consultants are fully aware that their actions violate FAA guidelines,” Christian said.
Star Marianas demanded that the CPA negotiate with airlines regarding any non-compensatory fee structures, in compliance with FAA rules.
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