GOVERNOR Arnold I. Palacios has signed a qualifying certificate for Micronesian Air Connection Services, which aims to provide additional inter-island transportation for CNMI residents.
J&P Holdings, which owns Micronesian Air, plans to invest $8.2 million in the first three years of its inter-island transportation business.
In December, the Commonwealth Economic Development Authority unanimously approved J&P Holdings’ request for QC, which will grant the company a 100% abatement on business gross revenue, corporate income, and individual income taxes.
CEDA board’s approval still required the governor’s signature.
When asked on Saturday if he had already signed it, the governor said, “Yes I did.” He did not elaborate.
J&P Holdings owner John Stewart earlier said they were looking forward to working alongside other tourism stakeholders, as well as the CNMI government, as the Commonwealth rebuilds its tourism sector. The additional flights, he said, will support hotels, restaurants, tour operators and local businesses to reestablish the islands’ pre-Covid position in the region’s tourism market.
Micronesian Air is operating under Szabo Aerospace.
Star Marianas, which also provides inter-island flight service in the CNMI, earlier said that while it “embraces competition that fosters innovation and benefits passengers, subsidies that ‘stack the deck’ in favor of one airline over another are not competitive. They are anti-competitive, predatory, and contrary to the principles of a free market. Star Marianas has proven its ability to operate sustainably and without government assistance for over 15 years, serving the CNMI with reliable, essential air service. It is concerning that, instead of improving market conditions or addressing regulatory issues, the CNMI government appears focused on replacing Star Marianas with subsidized alternatives, despite the evident risks to market stability and public interest.”
Star Marianas said it “remains committed to serving the CNMI community with the integrity and reliability it has upheld for over 15 years.”
