CNMI Explores New Air Service Options as Star Marianas Air Threatens Flight Cessation

The Commonwealth Ports Authority (CPA), which manages airports in the Northern Marianas Islands, is actively seeking new air service providers as Star Marianas Air, the only scheduled domestic airline in the region, threatens to halt operations. The potential shutdown stems from an ongoing debt dispute over airport fees.

During a recent board meeting, CPA Chairman Joe Ayuyu disclosed that he has engaged with several potential operators who might replace Star Marianas. “We have had interest from a couple of individuals and companies looking to serve the CNMI,” Ayuyu stated. He emphasized the CPA’s commitment to facilitating the entry of new operators by assisting with the permitting process.

Although specifics about the interested parties remain confidential during these preliminary discussions, Ayuyu mentioned that the CPA is exploring options beyond local carriers, including contacts in Alaska, Hawaii, and other regions within Micronesia. He noted an existing airline in Pohnpei that has been servicing Kosrae and expressed hope that they would consider expanding their operations to the CNMI.

The current crisis was precipitated when CPA billed Star Marianas for over $1.29 million in airport fees accumulated from October 2022 to May 2024, covering operations at Saipan, Rota International, and Tinian airports. According to ch-aviation’s report, Star Marianas contends that the fee structure is not economically feasible under the current terms.

Star Marianas’ Chairman, Robert Christian, has voiced concerns over the lack of transparency and fairness in the fee methodology, arguing that the charges do not accurately reflect the airline’s use of airport facilities and services. “The fees imposed make it impossible for us to maintain operations,” Christian explained to local authorities.

In response, Ayuyu expressed willingness to negotiate a payment plan, recognizing Star Marianas’ critical role in regional connectivity but emphasizing the need for the airline to contribute fairly to the operational costs of the airports. “I am flexible and open to discussions, but it is crucial that Star Marianas fulfills its financial obligations,” he remarked.

As the situation unfolds, Star Marianas has indicated that it will cease all operations by October if the dispute remains unresolved, potentially leaving a significant void in domestic air service that the CPA is eager to fill with new operators.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com