The CNMI’s application for renewal and amendment of expanded air services is patterned after the territory of Guam, which also relies heavily on tourism dollars for its economy.
“The amendment sought by Guam consists of eliminating the exclusion of Australia, China, and Japan…. While the Australia amendment is unopposed, several carriers have opposed unilateral extrabilateral rights for carriers from the People’s Republic of China and Japan in their Answers on the Guam docket,” said acting Attorney General Gregory Baka in the application filed with the DOT.
The CNMI’s tourism industry continues to struggle due to limited air seats from Japan — its major market.
There are plans to sell the destination to other major potential markets like China and Australia but strict U.S. aviation rules are blocking the efforts.
The CNMI amended expanded air services request should cover carriers providing cargo, passenger, or both services.
Currently, only two international airlines have direct regular flight service to Saipan, the center of business activities in the CNMI — Delta/Northwest and Asiana Airlines.
Only one China-based airline charters flights between Saipan and Shanghai every week.
Continental Micronesia, which is based on Guam, discontinued its service to the CNMI when it stopped its Manila-Saipan flights last year.
Baka said compared to Guam, the CNMI faces more challenging economic circumstances due to the loss of its garment industry, lack of a U.S. military presence, a much lower level of air service, a greater loss of tourism revenues, and infrastructure shortfalls.
“The CNMI does not by any means oppose the grant in full of Guam’s application, and indeed fully supports it given potentially increased joint tourism marketing efforts,” said Baka.
“The commonwealth merely points out, however, that the denial of Guam’s requested amendment for carriers from the People’s Republic of China and Japan should not by any means prejudice the grant of the CNMI’s requested amendment, given the strong positive law in the Covenant that reflects the will of Congress, the prior grant to Alaska without limitation by country of origin and the far weaker economic condition in the CNMI that literally cries out for relief,” he added.
