SENATE President Edith Deleon Guerrero on Friday “strongly urged” the Commonwealth Economic Development Authority to grant favorable consideration to the qualifying certificate application of Marianas Air Connections Services owner, J&P Holdings.
In her letter to CEDA Chair Francisco M. Rabauliman, the Senate president conveyed her “enthusiastic” support for J&P Holdings’ QC application.
She said the CNMI “stands at a critical juncture in its economic development, and the expansion of reliable air transportation services is essential to our future prosperity.”
She said the owners of J&P Holdings have consistently demonstrated their dedication to the islands’ growth through substantial investments in aviation infrastructure and steadfast service to the CNMI community.
Their business model that is centered on reasonable fares, reliable schedules and prompt payment of obligations, represents exactly the type of enterprise the CNMI government needs to stimulate economic recovery, Deleon Guerrero said.
She also recommended that CEDA consider adding a condition that throughout the tax incentive period, no adjustments in freight and airfare charges shall be made unless a public hearing is conducted on Saipan, Tinian and Rota. This, she said, will give the public an opportunity to comment on any proposed freight or airfare charge adjustment.
“While this qualifying certificate would provide certain tax benefits to the applicant, I am convinced that the resulting economic stimulation would generate far greater returns for our Commonwealth through increased business gross revenue taxes, hotel occupancy taxes and overall economic activity,” Deleon Guerrero said.
MACS intends to offer direct passenger flights between Saipan and Tinian, as well as Saipan and Rota, while charging more affordable airfare.
However, without tax incentives, their proposed $8.2 million investment is not economically viable, MACS tax attorney Tina Azarvand has said.
At least three other lawmakers — Senate Vice President Donald Manglona, Sen. Celina Babauta and Rep. Julie Ogo — have also expressed support for J&P’s QC application.
