SOUTHERN Airways, the largest commuter airline in the United States, is withdrawing as the operating airline for Marianas Southern Airways.
Southern Airways Chairman/Chief Executive Officer Stan Little said the decision is based on the unwillingness of Gov. Arnold I. Palacios to honor the contract signed by the previous administration.
MSA’s final flights will operate on April 1, 2023. All passengers booked after April 1 will see refunds to their credit cards beginning next week.
‘We wanted them to stay’
In a statement on Thursday, Gov. Palacios said while he fully recognizes the seriousness of any decision to end a contract that his predecessor, former Gov. Ralph DLG Torres signed with MSA last year, “there is just no money to support this $8 million sole-source deal.” The former governor, he said, “overcommitted the Commonwealth and overpromised money we did not have then and do not have now.”
“It’s unfortunate that MSA decided to pull out of our market. We wanted them to stay, but it is a sad situation with the agreement. If that is the linchpin to their stay in the CNMI, then that’s unfortunate because we cannot afford that much funding,” the governor said.
“Let’s be honest. When MSA first launched their introductory prices, the people of the CNMI have been paying for those rates with funds from the American Rescue Plan Act,” he said.
“If we were to do something, then we also have to do something with Star Marianas. It is within the regulations that we have to give equitable treatment to all companies wanting to serve the CNMI, and Star Marianas has been serving our islands for a long time without a lot of incentives,” the governor added.
Lack of effort
Southern Airways has been the operating partner for MSA since the airline’s inception.
MSA launched its operations in the CNMI and Guam in August 2022 following the execution of an incentive contract with the CNMI government. Southern Airlines was identified as the only airline willing to commit resources to the CNMI in the wake of an abrupt suspension of flights by Star Marianas.
“We understand how vitally important inter-island air service is to people living in island communities,” Little said. “That’s why we felt compelled to be part of a sustainable solution for the people of the CNMI. Unfortunately, since the new Governor’s announcement, ticket sales have plummeted to the level where service in the Marianas is no longer feasible. This could have been worked out, but the Governor just wasn’t interested in talking to us. I’ll never understand the lack of effort to salvage this investment.”
“We love the people of the Marianas and are deeply sad that the money set aside for this contract is no longer available to serve their needs,” said Keith Sisson, chief of staff of Southern Airways. “This unfortunate situation at least introduced us to a wealth of talent whom we hope will contribute to our company’s success going forward elsewhere.”
Thanks to customers, employees
MSA issued the following statement:
“For the past year we have been working with and serving amazing groups of people throughout the Mariana Islands. Unfortunately, April 1st will be our last day of operations.
“From the very beginning of the MSA project, we found a fantastic group of employees that we could count on day after day, who always gave 100% and handled difficult situations with class and a positive attitude (some even knew how to moonwalk!). We also appreciate the hard work that numerous individuals in local government agencies provided to help guide us and get our planes in the air.
“Most of all, we would like to thank our customers. As we worked to start and expand our services, your patience, encouragement and support helped motivate us every day. Though our plans have been cut short due to an unexpected turn of events, we hope that all of you will know how much we appreciate the opportunity to have served the people of the CNMI and Guam, as you chose to fly on a first-class aircraft piloted by the most experienced group of commuter aviators in the Western Pacific.
“Thank you also to Southern Airways Express, who without their experience and commitment to MSA and the CNMI, we wouldn’t have been able to operate. In closing, we wish all of our customers and stakeholders whom we have served or worked with during the past year, continued access to reliable, safe and affordable travel between our islands.”
Sad news
The Saipan and Northern Islands Legislative Delegation chairman, Rep. John Paul Sablan, said it’s sad that the CNMI is losing MSA which will leave inter-island travelers only one option.
Residents traveling regularly to Tinian and Rota will have no other choice except one airline, he added.
He said he welcomes competition because it promotes quality services and may keep the cost of services from going up too high.
Sablan hopes that the CNMI can get another new airline to invest here.
Rep. Vincent “Kobre” S. Aldan said MSA should have verified the existence of the ARPA funds before signing the agreement with the Torres administration.
He said former Finance Secretary David DLG Atalig certified the funds for the contract, but “should we always just rely on words?”
