“We need to help airlines,” he said. “They may lose confidence in us if we will not do anything to assist them,” he told yesterday’s MVA general membership meeting that saw the attendance of nearly a hundred participants from the private and public sectors.
Through the Commonwealth Ports Authority, the CNMI government initiated an incentive program for airlines servicing the islands, providing them discounts on the various fees they had to pay in the commonwealth.
However, due to budget constraints, CPA terminated the program early this year.
“CPA terminated the airlines incentive program because of the bond issue … we’re hoping that the administration and the Legislature will work together to find funding to provide these incentives again,” Tan told Variety.
He said MVA will ask lawmakers to consider reviving the program.
Starting last May, airlines that provide flights to the commonwealth were no longer provided special discounts as there was no more funding for the airline incentive program.
The program, which was created two years ago, had a $2 million funding, but CPA said this was “not enough.”
The airlines that benefited from the program were Northwest, Asiana and Air China.
CPA earlier said it needs up to $10 million to continue the program for three years.
