Leo Tudela
THE Commonwealth Ports Authority is willing to negotiate with Star Marianas Inc., CPA Executive Director Leo Tudela said.
“We still want to meet and talk with Star Marianas to come up with reasonable terms because the people of Saipan, Tinian and Rota will be affected, and I really feel sorry for what’s going to happen soon,” Tudela said in an interview on Wednesday.
Star Marianas Board Chair Robert Christian issued a memorandum last month, informing Gov. Arnold I. Palacios, Tinian Mayor Edwin P. Aldan and Rota Mayor Aubry Hocog that SMA would terminate its air services to Tinian and Rota on Oct. 15, 2024, if a resolution to the current fee setting dispute with [CPA] cannot be found.”
Christian issued the memorandum after receiving a demand letter from CPA, asking for a payment on or before Aug. 10, 2024, of $1.2 million in “outstanding debts” for the use of airport facilities on Saipan, Tinian and Rota.
Tudela said he sent Christian another demand letter last week as a matter of “procedure” and as provided for by CPA rules.
“Then afterwards, we have to do something beyond that,” he said. He added that he and other CPA officials met with Christian in March and April to discuss “with an open mind” the airline’s “outstanding debts and its issues” with CPA.
However, Tudela said, the discussions in the meeting did not yield any results.
“So now we are looking into a couple of airlines [that can provide inter-island services] but I cannot tell you what their names are,” he said.
Hopefully, he added, CPA can settle on reasonable terms with Star Marianas. “They have been here a long time and they have been part of the CNMI for many years. If we can work out something reasonable, I’ll be happy. If not, then, we are looking at other airlines,” Tudela said.
Christian has said that the primary challenge Star Marianas faces is not a lack of willingness on their part to continue providing vital air services, but “the unsustainable fee structure imposed” by CPA.
