This photo of Star Marianas’ Piper PA 31-350 Navajo Chieftain was taken from the departure area of Benjamin Taisacan Manglona/Rota International Airport.
GOVERNOR Arnold I. Palacios seeks a mutual agreement between the Commonwealth Ports Authority and Star Marianas Air.
Last week, SMA said 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.
On Oct. 1, 2021, CPA terminated its airline use agreement with SMA, 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, SMA issued a “notice of intent” to end its CNMI flight service starting Oct. 15 due to CPA’s “unsustainable fee structure.”
Longstanding
In a statement on Sunday, July 28, 2024, the governor said the fee dispute between the CPA and Star Marianas “has been a longstanding issue inherited from the previous CPA board, and, unfortunately, it remains unresolved.”
He said SMA’s letter stating its intent to cease operations “is deeply troubling, as air service plays an essential role in our community.”
“The airline’s services are not merely a convenience for our people but a necessity that impacts the Commonwealth’s economic growth and development, residents’ access to healthcare, education, and overall quality of life,” Palacios said.
He 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.”
Palacios said he is also reaching out to SMA and plans to meet with its officials soon.
“Maintaining and improving air service, along with improving and enhancing port infrastructure, remain a key priority for this Administration,” he said. “Lt. Governor Apatang and I will continue to keep the community informed of developments on this matter,” Palacios added.
Tinian Mayor Edwin P. Aldan has asked SMA to reconsider its decision, saying it “will have a profound impact on the Tinian economy and the livelihoods of our residents.”
But SMA said the primary challenge the airline faces is not a lack of willingness on their part to continue providing vital air services, but “the unsustainable fee structure imposed by” CPA.
Negotiating table
In her letter to SMA, Rota Mayor Aubry Hocog, for her part, said it is “imperative” that CPA and the airline “think of the far-reaching consequences of the dispute.”
She urged them to “return to the negotiating table and work collaboratively to find a mutually beneficial solution.”
In his reply to Hocog, SMA Chair Robert F. Christian said, “the lack of movement toward resolution is beyond the control” of Star Marianas.
He said CPA has “steadfastly refused to provide Star Marianas” with the details of CPA’s billings.
He said the new CPA administration decided that “rather than discuss the issues that we presented to … (them), a demand for payment of a large amount of money was necessary.”
He added, “Once again, the amounts in the demand letter the CPA presented to [Star Marianas] were just total amounts they claim are owed to them, unsupported by any detail, and seemed to be similar to the amounts that were very generally presented in the ratebook, which merely lumped total CPA expenses into terminal and airfield categories.”
The SMA chair said, “It seems we, together with all members of the community, can understand that being presented with a demand for payment of a large amount of money that has no supporting rationale as to why it is being assessed is an alarming and deeply disturbing action to take by a CPA with appointed management and given dictatorial authority with monopolistic power.”
