COMMONWEALTH Ports Authority Executive Director Christopher Tenorio informed the CPA board on Tuesday that Asiana Airlines is suspending its CNMI flight service effective March 4, until further notice.
CPA Board Chairwoman Kimberlyn King-Hinds said she was not too familiar with Asiana’s plan, but added, “I’m hoping that they will come back.”
She said fewer flights will mean less revenue for CPA. The worst-case scenario, she added, is that they may have to lay off employees and operate at a very limited level.
“If we don’t find a remedy for the current situation, it’s either that, or we pass on the charges. And the alternative is, it’s going to be very expensive to land here,” she said, adding it’s not going to be enticing to come here.
In an interview on Wednesday, acting Marianas Visitors Authority Board Chair Gloria Cavanagh said Asiana is the only carrier from South Korea that provides full service to its passengers visiting the CNMI.
The suspension of its flight service will make the CNMI look like a low-cost carrier destination, she added.
But as far as the number of South Korean flights to the CNMI is concerned, Cavanagh said T’Way Airlines and Jeju Airlines are increasing theirs, and there is also a strong demand for low-cost carrier or LCC travel in South Korea.
In the last couple of months, she said LCCs had load factors of over 90%.
However, Cavanagh said there are travelers from Korea who prefer a full-service airline like Asiana. These are the individuals who avail themselves of a full-service airline’s mileage services.
South Korea is the CNMI’s primary tourism market.
Cavanagh said they first learned about Asiana’s plan to suspend its flights to the CNMI when they met with tourism partners in Korea in December.
But she said if there is a possibility that “sometime in the near future,” the CNMI is able to reopen the China market, “then I think Asiana will rethink and look at our destination and hopefully come back.”
Cavanagh said right now, Asiana is in the middle of merger talks with Korean Airlines.
If the merger pushes through, she said Asiana will be able to resolve its financial problems and serve more customers.
