Marianas Variety

Thursday, May 23, 2013-7:07:31A.M.

Last updateWed, 22 May 2013 10am

Classifieds: The Classifieds section is currently under development and will be back soon.

Saipan Air calls it quits

Font size:

SAIPAN Air general counsel Steven Pixley in a statement Friday announced that the NMI's first airline, which was supposed to launch its first flight on July 1, is ceasing operations immediately.

Pixley said the "difficult" decision "follows months of preparation and millions of dollars in expenses."

He said Tan Holdings' Saipan Air "acknowledges the hard work and effort expended by our staff and travel partners toward building the first locally based air service."

Unfortunately, he added, " the economic reality of restarting operations following the postponement of the original launch date presents an insurmountable obstacle."

According to the lawyer, Swift Air, "the entity that defaulted on its charter agreement contract with Saipan Air, filed bankruptcy. Despite this filing, Saipan Air will continue to pursue all of its legal options."

Swift Air owes Saipan Air $1.276 million.

Comments  

 
11 Dislikes 5 Likes,  #15 seven7 07-02-2012 14:30
Crash and burn baby! sorry, but these guys never did good business, I mean starting up a paper with the goal of ensuring the other one crashes and burns? that's karma for you...
 
 
3 Dislikes 14 Likes,  #14 peanutbutter 07-02-2012 07:58
"No surprise"? Really? Look back a few weeks in the Variety comments and see all the barstool regulars kibbitzing for Saipan Air. No one questioned it back then. Even Zaldy, in one of his editorials, fell for the ruse.

Declaring now (from your barstools) that it was fishy is useless. Next time, recognize these scams before they fleece you.

See here: mvariety.com/cnmi/cnmi-news/local/46452-saipan-air-to-launch-daily-flights-to-narita-beijing-on-july-1.php

And I reiterate my comments from May 16: if the Variety's reporters did more than blankly repeating what someone told them, this newspaper could fulfill its putative mission of telling people something they don't already know. And the CNMI's cast of liars and scammers would have something to fear. But I'm just dreaming.
 
 
15 Dislikes 9 Likes,  #13 Sinkingslowly 07-02-2012 05:36
Quoting whatithink:
Interesting that Willie got left holding the bag. Some would call it Karma.


I was thinking the same thing......sooner or later anyone or anything associated with Fitial will turn to dust but there are lots of other questions to be answered. Tan doesn't usually get left holding the bag.

Has he severed ties with Fitial now that SA has failed? Is it a 1.5 mil dollar excuse to get away from Fitial?
 
 
14 Dislikes 8 Likes,  #12 I live here 07-01-2012 20:30
Quoting captain:
this sure looks like something initially organized by Fitial and this Admin.(and others) using Tan money.


So basically people who can't be trusted (Fitial, Tan)were dealing with other people who can't be trusted (Swift Air) and ... surprise surprise... everybody got screwed. .. Except for whoever looted Swift Air on the way out.
 
 
13 Dislikes 7 Likes,  #11 CrabbyMcCrab 06-30-2012 19:12
Something was weird about this from the start. They never took reservations from here on island. Those first flights up are empty, Century (Tan) used to sell those empty seats, and advertise them. I tried to go to SA offices on beach road about 2 weeks ago, they gave me the runaround until I finally found it, a desk in the saipan tribune offices... When I asked the person there (who would not look me in the eyes) if there were any fares from SPN to JPN or CHN that person just kinda mumbled something incoherent and said "watch the papers"... When I asked when the website would be updated, the person did not seem to know SA had a website.... Something is fishy here.....
 
 
14 Dislikes 8 Likes,  #10 Dora 06-30-2012 12:10
Quoting, "follows months of preparation and millions of dollars in expenses.".......whose millions of dollars? And to what degree did the people of Saipan unknowingly contribute via tax breaks and other things offered up by this crooked government?
 
 
12 Dislikes 6 Likes,  #9 improvesaipan 06-30-2012 10:17
This debacle underscores the need to obtain audited financial statements prior to making such a large investment.

Interesting that it was not to be a "flagship carrier" at all but just a charter airline. That begs the question as to why there are still only charter airline fares from China direct to Saipan. Most of the Chinese people I know use Asiana Airlines to get to Saipan, even though it means high fares and a stop in Korea.

This begs the question as to why there are no scheduled flights to China. Is there a sweetheart deal between the designated charter travel agency and some highly placed government official? When Sichuan Airlines announced its charter service to Saipan in May of 2011, it stated its intentions to become a scheduled airline. What happened? Why is the CNMI not making aggressive efforts to invite the Chinese tourism market?
 
 
9 Dislikes 3 Likes,  #8 Analyzer 06-30-2012 09:51
The Corporate never get his share of the money so he said- no deal good bye adios amigo your not getting my shiny penny.huh Tan.
 
 
11 Dislikes 5 Likes,  #7 Anon-Chan 06-30-2012 08:44
I'm pretty sure I called this when I first heard that SaipanAir was going to lease planes. If i remember correctly, "that's no way to run a successful business," were my words. I might have been biased (I only heard about the venture after Swift jumped ship) but one company simply can't put enough power and money to make them fold into another companies hands. It's a game of poker with millions on the line - you don't give your best hand to an acquaintance and ask them to win for you.

I'm sure the details are a bit more complex than that... but I like the analogy! I'll say it with a 'don~!'
 
 
10 Dislikes 4 Likes,  #6 mamababy 06-30-2012 05:56
If you are unable to fly, I recommend sailing as an alternative. There is no need to be in a hurry anymore. Sail boats are one of the best to travel and it is Eco-friendly.
 

You must Login first in order to post comments. If you don't have an account, please Register.