Micronesian Air Connection Services Faces Startup Delays
Micronesian Air Connection Services (MACS), a promising startup aimed at connecting the Northern Marianas Islands and Guam with scheduled passenger services, is facing significant regulatory hurdles as it struggles to secure the necessary certifications for a mid-December launch. As reported by the Saipan Tribune, the startup’s plans are now uncertain due to delays in obtaining a qualifying certificate and operating authority.
MACS, operating under the trading name for Szabo Aerospace—a subsidiary of Micronesian Air Cargo Services LLC based in Guam—has applied for a qualifying certificate through the Commonwealth Economic Development Authority (CEDA) in the Northern Mariana Islands. This certificate is crucial as it grants tax waivers or reductions, enabling the startup to allocate more resources towards commencing operations.
Despite submitting the application in September, CEDA has yet to make a decision. A recent meeting on December 10 involving John Stewart, the primary owner of MACS, concluded without approval, as CEDA indicated the need for additional information. The startup had initially hoped to begin its services around December 18, but these plans are now jeopardized by the ongoing delays.
Further complicating matters, MACS’s parent company, Szabo Aerospace, also faces setbacks with the U.S. Department of Transportation (DOT). In October, ch-aviation highlighted Szabo’s application to operate scheduled passenger flights using Cessna 208B aircraft. However, on November 19, the DOT requested more detailed information concerning Szabo’s management, compliance records, financial status, and ownership structure before granting commuter air carrier authority.
Without the DOT’s approval, MACS cannot start operations under its intended schedule. Stewart has been given a 90-day window by CEDA to provide the necessary documentation, with a commitment to deliver by the close of business on December 11. CEDA has scheduled another meeting for December 13 to review the additional information and potentially move forward with the approval process.
The ongoing challenges highlight the complexities and regulatory hurdles new airlines face in establishing themselves in the aviation market, particularly in regions requiring significant logistical and administrative coordination like Micronesia. As MACS navigates these hurdles, the delay poses questions about the feasibility of its proposed start date and its future operations in the region.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com