Star Marianas Air, airport operator agree to solve dispute

Commuter airline Star Marianas Air (Tinian) and the Commonwealth Ports Authority (CPA) of the Northern Mariana Islands have agreed to resolve a long-standing dispute over USD2.6 million in unpaid airport service fees, reports the Saipan Tribune. The airline serves the CNMI islands of Saipan, Tinian, Rota Int’l, as well as Guam Int’l while the CPA oversees all airports and seaport throughout the Micronesian archipelago. The parties have been in dispute since 2012 over passenger service payments owed by Star Marianas Air (SMA) to the airports’ authority. The airline argues the fees are excessive and neither based on fair market value, operational costs, nor the weight of its aircraft. The matter is to be heard in the Northern Marianas Islands Supreme Court in April 2021 after SMA in December 2020 sued the CPA for alleged breach of contract, upon which the CPA filed a motion to dismiss. Appearing before Tinian and Rota senators on March 23, SMA president Bob Christian and CPA chairperson Kimberlyn King-Hinds committed to resolving their differences. Representing the CPA, legal counsel Robert T. Torres said the CPA was committed to “a good faith resolution”. He said the parties in 2009 had signed an airline tenant agreement according to which SMA was obliged to pay fees based on costs incurred by the CPA and the services provided to the carrier. The airline was required to pay an approximate rate based on CPA’s proposed annual budget. The airline disputes the amount owed. The authority could not produce “one billing statement” to prove it, Christian retorted. The carrier accused the CPA of illegally charging head taxes on passengers travelling through its airports. It also accused the authority of numerous contract breaches and of failing to provide an analysis of its landing fee charges between fiscal years 2009 to 2014. According to Torres, the US Federal Aviation Administration had determined that the CPA was in compliance with legislation and that its current rates and methodology were transparent and reasonable. He said the US District Court for the Northern Mariana Islands and the FAA had repeatedly dismissed SMA’s complaints. Star Marianas Air (named after the first letter of the islands of Saipan, Tinian, Aguiguan, and Rota) was founded in 2008 and received initial certification from the FAA as an on-demand air carrier effective April 1, 2009. In June 2014, it received FAA and US Department of Transportation approval to conduct scheduled passenger and cargo services throughout the Mariana Islands. According to the company website, its fleet comprises eight Piper (single piston) PA-32-300 Cherokee Six aircraft and five Piper (twin piston) PA-31-350 Navajo Chieftains.