STAR Marianas Air. Inc. on Thursday resumed its “on-demand and air taxi” operations between Saipan, Tinian and Rota while the negotiation for a “mutually satisfactory solution” between SMA and the Commonwealth Ports Authority continued.
SMA president Shaun Christian, in his letter to CPA Chairwoman Kimberlyn King-Hinds, said the airline acknowledges CPA’s agreement to meet within 60 days to discuss and resolve their major disputes on fees and charges.
But he said since both parties seem to have substantial differences, a third party participation is appropriate.
He said SMA agrees with CPA that “during negotiations, and to achieve a mutually satisfactory solution, the parties will mutually sponsor a request to the Federal Aviation Administration to answer questions that form the core of the dispute between parties including (1) the fees that can be assessed under a compensatory rate methodology, and (2) whether the newly amended CPA regulations assess the appropriate fees and charges based on the type of aircraft that SMA utilizes to provide flight services to the public.”
Christian said SMA and CPA have only reached agreement on general principals so the airline’s agreement “is contingent on…CPA continuing to demonstrate good faith efforts to resolve the issues raised by SMA.”
He said since CPA “has indicated that it has no discretion in terms of abating the fees and charges and the governor’s offer to provide subsidies is seemingly tied to a request to reduce airfare prices, it seems appropriate that Star Marianas undertake the discussions about subsidies directly with the Office of the Governor. As such, the subsidies and airfare prices should not present an obstacle to the continued cooperation between Star Marianas and…CPA.”
Christian informed King-Hinds that SMA has already resumed its on-demand and air taxi operations, and is also “diligently moving forward, largely based on CPA’s recent good faith gestures and assurances, to request permission from the [U.S. Department of Transportation] to restore commuter services to the CNMI.”
In a separate interview, Rota Sen. Paul Manglona urged his constituents to call or visit the SMA reservation office and inquire about cargo and passenger service.
He said “hopefully in a few weeks, SMA will resume their regular flight service.”
Star Marianas Air planes are parked at the Francisco C. Ada/Saipan International Airport commuter terminal on Thursday.
