By Bryan Manabat
[email protected]
Variety News Staff
THE Marianas Visitors Authority board on Thursday approved a $1.5 million sole-source contract to support summer air service between South Korea and Saipan, though the agreement still requires approval from the Office of the Attorney General and acceptance by Jeju Air before it can take effect, according to MVA officials.
The meeting was presided over by acting chairwoman Vicky Benavente, who joined the rest of the five-member board in voting to approve the measure.
Board member Joe Guerrero moved to approve the sole-source procurement justification, and Ivan Quichocho seconded the motion.
Board member Sachiko Gerrard attended the meeting in person, while Marvin Deleon Guerrero participated via Microsoft Teams.
The motion passed unanimously.
Acting MVA Managing Director Judy C. Torres said the contract is necessary to preserve direct Korea-Saipan air service during the CNMI’s fragile post-Sinlaku tourism recovery.
“One of the things that we got approved at today’s board meeting is the revised terms and conditions for air service continuity from Korea to Saipan,” Torres said. “As you know, T’Way has already suspended its flights. Based on changes in market conditions, the board approved this air-service agreement from Korea to Saipan.”
Torres confirmed the contract is valued at $1.5 million and said Jeju Air’s first flight is scheduled for June 21. The agreement covers the summer travel period from June 20 through Oct. 24.
She said Jeju Air was the only carrier willing to continue direct service.
“Over the past couple of months, the management team and the board have approached other airlines about providing air service, and Jeju Air was the only carrier that agreed,” Torres said. “It is providing direct flights between Korea and Saipan.”
T’Way, she added, faced other challenges, including market conditions and internal operational issues.
Why sole-source?
Torres briefed board members on the justification for the procurement, noting that South Korea accounts for approximately 70% of all visitor arrivals to the CNMI.
She said the tourism industry was already facing pressure before Super Typhoon Sinlaku due to rising fuel costs, weakening demand, unfavorable exchange rates, and increased competition. The typhoon further delayed the resumption of international flights and limited nighttime airport operations.
T’Way discontinued service to Saipan in May, leaving Jeju Air as the only South Korean carrier committed to maintaining service to the destination.
Fuel surcharges for Korea-Saipan travel have also risen sharply, from $39 per round-trip passenger in May 2025 to approximately $190 in May 2026, contributing to declining bookings.
Jeju Air reduced its original plan of 188 summer and fall flights to approximately 85 flights under a revised schedule, citing market conditions and typhoon-related impacts. Despite the reduction, Torres said the airline remains committed to serving Saipan.
During the discussion, Benavente asked Torres whether Jeju Air would continue operating without the subsidy.
“If we do not grant this sole-source justification, will Jeju still continue to fly?” Benavente asked.
“No. Not at all,” Torres replied.
With no further questions, the board voted unanimously to approve the procurement justification and authorize management to proceed.
The agreement will move forward once the Office of the Attorney General completes its review and Jeju Air approves the revised terms.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
