In this file photo, Jose Ayuyu presides over a meeting of the Commonwealth Ports Authority board of directors.
AIRLINES that can provide inter-island services have “approached” the Commonwealth Ports Authority, its chairman, Jose C. Ayuyu said during a board meeting Friday.
He declined to mention the names of the companies, but he said that in separate initial meetings with them, they expressed interested in the CNMI “as a place for them to do business.”
Ayuyu said he told the airline officials that CPA will do everything it can legally, to assist them in the permitting process.
“So that is where we are right now. They have not really committed to come in, but they are doing their homework in terms of trying to seek airplanes and financing. So we do have potential and hopefully these people will move faster,” Ayuyu said.
One of the airlines inquired about a possible subsidy from the CNMI government, but Ayuyu said he told the airline official “we don’t have the money to subsidize their operation, but I can lead them to different places where they can get money.”
These include the Commonwealth Economic Development Authority, which can provide an eligible investor with a loan or a qualifying certificate to exempt them from certain taxes, Ayuyu said.
He said there are also other CNMI or federal government programs that can be funding sources.
Board member Steve Mesngon of Rota thanked Ayuyu for “going out of your way to find options — we really need options.”
He said it really bothers him that the people of Rota and Tinian, especially those with medical needs, are being put at risk.
He said Star Marianas, “basically, is threatening us, and I don’t like that.” He said CPA should consider all proposals from other airlines that can provide services in the CNMI.
“Just to be frank, and I’m sorry to say this on record, if Star Marianas is trying to threaten the people of Rota I will be the one in front to say I will check other airlines that can guarantee [a flight service for] our people, especially those with medical needs,” Mesngon added.
Board member Dolores Kiyoshi of Tinian echoed Mesngon’s sentiment, saying that Star Marianas’ decision to cease operating in the CNMI is “going to hit the people of Rota and Tinian, and not CPA.” She said she also wanted to say on the record that “CPA is doing its best.”
“All we ask is [for] Star Marianas to pay moving forward,” she added.
On Oct. 1, 2021, CPA terminated its airline use agreement with Star Marianas, which sued CPA in Superior Court on Dec. 14, 2022, accusing CPA of breach of agreement.
On July 11, 2024, CPA Executive Director Leo Tudela sent Star Marianas President Shaun Christian a demand letter asking for payment of $1.2 million in outstanding debts for the use of airport facilities from Oct. 1, 2022 to May 2024.
On July 23, 2024, Star Marianas issued a “notice of intent,” saying it would terminate its Saipan, Tinian and Rota flight service on Oct. 15, 2024 if no resolution to its dispute with CPA over airport charges could be found.
Gov. Arnold I. Palacios, for his part, said he has initiated discussions with the CPA board of directors “to seek a comprehensive briefing and to see how a mutually beneficial agreement can be reached with Star Marianas so the Commonwealth, especially residents of Rota and Tinian, are not deprived of essential air connectivity.”
