Restoration of old airport rates to cost government close to $1M

THE CNMI government has incurred an additional cost of close to $1 million due to the Commonwealth Ports Authority’s reimplementation of the old airport rates as recommended by the governor.

 CPA Executive Director Leo B. Tudela is now asking Gov. Arnold I. Palacios for a written assurance that the remaining balance of the airline rate invoices for the period of Oct. 2023 to May 2024 totaling $965,468.80 “would be paid…by the Commonwealth government.”

Tudela said the amount reflects the difference between the increased 2024 airline rates and the rates prior to Oct. 1, 2023.

In August last year, the previous CPA board, heeding the advice of Ricondo & Associates, increased the airport fees, which took effect on Oct. 1, 2023. Last month, the CPA board approved a resolution reimplementing the airport rates charged to commercial airlines prior to Oct. 1, 2023.

In his letter to the governor on July 11, 2024, Tudela said to provide further assurance to Jeju Airlines in terms of lower airline rates, CPA respectfully requests a letter from the governor containing such assurances.

Tudela also informed the governor that Asiana Airlines and T’Way Air Co. Ltd. want to know if they can avail themselves of the new and lower rates offered to Jeju Airlines.

Last month, Jeju Air announced additional flights for the Incheon-Saipan route.

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