ALTHOUGH Asiana Airlines will suspend its Saipan flight service in November, Marianas Visitors Authority Managing Director Christopher Concepcion said the South Korean airline will resume flights for the peak season in December.
In an interview on Wednesday, Concepcion said the MVA is aware of Asiana’s announcement that it will temporarily suspend flights next month “due to the many financial issues they are facing.”
“The good news is that they will resume flights in December just as the high peak winter season gets underway,” Concepcion said.
He added that the MVA understands that Asiana Airlines is undergoing internal challenges with its merger with Korean Air, which is being opposed by the U.S., the European Union, and at one point even Japan.
“We are confident things will work out in the end. Asiana Airlines is our oldest partner in the Korea market with over 30 years of service to the CNMI. We look forward to continuing our partnership as we work together to grow arrivals from our top source market of Korea,” Concepcion said.
In a separate interview, Commonwealth Ports Authority Vice Chairman Ramon A. Tebuteb said Asiana Airlines also suspended its flights earlier this year, in light of the merger negotiations with Korean Airlines.
But this time, he said Asiana was also “aggravated by the increase in fees” at the Francisco C. Ada/Saipan International Airport.
CPA board member Antonio B. Cabrera said he had been thinking about recommending that the CPA board reconsider the fee hike measures. “That’s what I warned the board but hell no, they need revenue. I knew that was forthcoming,” he added.
The increase in landing fees and terminal rental rate at the Saipan airport is part of CPA’s $13.6 million fiscal year 2024 budget that the board approved last month.
The fee increases, along with an eight-hour cut per pay period for CPA employees, are among the recommendations of CPA consultant, Ricondo & Associates, so CPA can generate more revenue, meet its debt ratio requirement of 1.25 and prevent a potential receivership.
In his report to the board of directors on Friday, CPA Executive Director Christopher Tenorio said Jeju Airlines and T’Way Airlines will continue their daily flights to Saipan. He also reported that United Airlines is continuing its Narita-Saipan flight three times a week and its daily Saipan-Guam flights.
