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Marianas Southern Airlines, which flew out of the Commonwealth of the Northern Mariana Islands in March 2023, has been sued in federal court.
photo: supply
Mariana Southern Airlines, which took off from the Commonwealth of the Northern Mariana Islands (CNMI) in March 2023, was sued in federal court by its then-rival, Star Marianas Air Inc., alleging violations of the U.S. Sherman Antitrust Act.
The Sherman Antitrust Act of 1890 is a federal statute that prohibits practices that restrain interstate commerce and competition in markets. It prohibits any contract, conspiracy, or combination of business interests that restrains foreign or interstate commerce.
Last week, Star Marianas, through attorneys Richard Richards and Mark Scoggins, filed a lawsuit against Marianas Southern and its president in the U.S. District Court for the Northern Mariana Islands.
In addition to Marianas Southern Airlines, Star Marianas also named Southern Airlines Express, LLC and Marianas Pacific Express, LLC as defendants.
Star Marianas has filed six charges of violating the Sherman Act against Marianas Southern under an $8 million sole-source contract between the airline and the government of the Northern Marianas Islands under the previous administration.
Seeking relief, Star Marianas asked the district court to enjoin the defendants from entering into any similar agreements that would unreasonably restrain competition and “conspire to monopolize the aviation industry in the Commonwealth of the Northern Mariana Islands.”
Star Marianas also wants the court to award them the amount of damages to be determined at trial and such other relief as the court deems just and appropriate.
According to the lawsuit, on March 21, 2022, Marianas Southern entered into a sole-source contract with the federal government of the Northern Mariana Islands to receive $8 million in federal funds through the American Rescue Plan Act.
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