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SAIPAN, July 26, 2024 (Pacific Islands Times) – Star Mariana Airlines, a commuter airline providing passenger and air cargo services in the Northern Mariana Islands, has issued a notice of its intention to terminate air services to these areas effective October 15.
This decision is due to the unsustainable fee structure currently implemented by the Federal Ports Authority.
“Broad definitions of maintenance and operating expenses, lack of detailed cost allocations, and vague treatment of public use areas result in fees that do not accurately reflect actual usage of our airport facilities and services,” Robert F. Christian, chairman of the Star Marianas Commonwealth board of directors, said in a letter to CNMI officials.
The letter was sent to Commonwealth of the Northern Mariana Islands Gov. Arnold A. Palacios, Tinian Mayor Edwin P. Aldan and Rota Mayor Aubry M. Hocog.
Star Marianas Airlines provides inter-island flights to Saipan, Tinian, Rota and Guam. In addition to scheduled flights, Star Marianas Airlines also provides charter services.
As the only domestic airline operating at Tinian and Rota airports, Star Mariana Airlines bears an unfair share of airport costs. The pricing structure is used by multiple airlines of varying sizes, but it is unfair for the unique circumstances of these airlines.
“In addition, the lack of transparency in the allocation of costs raises concerns about cross-subsidy, where the fees we pay for our services could primarily benefit larger airlines that do not currently operate at the airport,” Christian said.
“This is particularly evident in the ARFF charges at airports where we operate aircraft that do not require such services, which in effect subsidizes the ARFF costs for marketing purposes or at other airports such as Saipan where large aircraft require these services,” he added.
Christian said the CPAs were authorized to make mid-year and year-end adjustments without clear standards or input from the airlines, creating financial uncertainty for Star Mariana Airlines.
Tinian and Rota airports serve communities that rely heavily on the Star Marianas airways for essential transportation.
“The current fee structure jeopardizes our ability to continue to provide this important service, threatens to isolate communities and hinder economic development,” Christian said.
The airline called on the government to work with the CPA to facilitate dialogue to establish a transparent, fair and sustainable fee structure.
Christian stressed that immediate action must be taken to resolve this situation and ensure that air services can continue uninterrupted. Star Mariana Airlines is ready to work with all parties involved to find a solution that will benefit the entire community.
“We remain steadfast in our commitment to providing safe and reliable air service to airports in the Commonwealth of the Northern Mariana Islands, and we will not seek subsidies,” Christian said.
“However, the current fee structure is opaque and unpredictable due to decisions by local authorities, which creates an unacceptable risk of jeopardizing our ability to operate sustainably. This arbitrary and capricious fee structure is a direct result of the actions and decisions of the Federal Ports Authority,” he added…PACNEWS
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