GOVERNOR Arnold I. Palacios was asked on Tuesday to intervene in the ongoing dispute between Commonwealth Ports Authority and Star Marianas Air Inc. over airport fees.
In his letter, SMA President Shaun R. Christian provided the governor a summary of what he said has transpired over the years in regard to CPA’s actions against SMA.
He said this included the termination of the airline use agreement or AUA and the implementation of CPA’s own fee calculation methodology, which, he added, resulted in exorbitant airport user fees.
He said the increases in the passenger facility charge were “not only unnecessary but also appeared to be aimed at punishing SMA by raising its costs to unsustainable levels, while simultaneously offering significant discounts to a new inter-island carrier, Marianas Southern Airways.”
Christian also noted that then-Gov. Ralph DLG Torres, instead of keeping his promise to review the rates imposed by CPA, subsidized Marianas Southern Airways with $8 million “in an attempt to drive SMA out of business.”
He also said that it is “widely believed that the CPA board chair has actively sought to drive [Star Marianas] out of business in the CNMI. This perception arises from the chair’s apparent prioritization of establishing control over the airlines using the ports rather than addressing the level and quality of services provided to the public,” he said.
He said SMA remains open to local initiatives aimed at resolving CPA’s “detrimental course of action, which will result in cost-prohibitive disruption of inter-island air service.”
While the Federal Aviation Administration has certain oversight responsibilities over the issues facing CPA, it is ultimately the local economy that will bear the consequences of the CPA’s actions, he said.
On behalf of SMA, the CNMI residents, and the economies of all three islands, Christian is “strongly” requesting the governor’s intervention in the ongoing actions of CPA.
“From our perspective, these actions are unprofessional, vindictive, and counterproductive to CPA’s mandate of developing the ports to their fullest potential,” he said, adding that SMA will continue its efforts to bring CPA into compliance with its responsibilities.
SMA also hopes that CPA will revise its current course of action.
“We believe that your administration’s involvement can help resolve the sustainability issues surrounding inter-island flights and prevent another transportation crisis,” Christian said.
Gov. Palacios terminated the CNMI government’s $8 million contract with Marianas Southern Airways in February. MSA ended its air service in March.
‘Take your best shot’
Asked for comment, CPA Board Chairwoman Kimberlyn King-Hinds said the SMA president is entitled to his opinion, but not to his own facts.
She said the history of the dispute is well documented and reported by the media multiple times.
“This matter has been in front of the Federal District Court and reviewed by the FAA where any of the claims they are alleging has been found to be true. That is a fact. What’s also a fact is that they owe millions. This matter is now before the Superior Court,” King-Hinds said.
“If this is to personally malign me, as I am directly referenced as Board Chair, take your best shot. Because if this is the blowback that I have to keep dealing with for doing what’s right for the people of Tinian, and most especially my brothers and sisters in Rota who are suffering the most, I’ll take all the punches,” King-Hinds said.
