Editor,
The Commonwealth of the Northern Mariana Islands is at a critical juncture, with the urgent task of revitalizing its economy through enhanced investment, tourism, and business development.
Central to this challenge is the need to address the problematic relationship between the Commonwealth Ports Authority and the airlines, particularly concerning fees and services.
The CPA historically facilitated Airline Use Agreements that established fair service fees, a framework all airlines agreed to in 2007. However, the introduction of smaller aircraft by STAR Marianas Air in 2009, which did not require the full spectrum of CPA services, led to disputes.
The CPA's failure to adhere to the 2007 AUA terms resulted in STAR Marianas paying fees under protest and subsequently taking legal action.
An independent review supported STAR Marianas' grievances regarding CPA's overcharges and failure to comply with the agreed terms. Rather than seeking a resolution, the CPA attempted to increase fees in 2017 through proposed AUA amendments, which were unanimously rejected by all signatory airlines serving the CNMI.
In a unilateral move in 2021, the CPA terminated the 2007 AUA, imposing higher fees through local regulations.
This approach by the CPA has led to further legal confrontations, culminating in a 2023 court ruling against the CPA for violating the 2007 AUA terms, a decision that was affirmed upon appeal in 2024.
The CPA's persistent efforts to enforce exorbitant fees, despite judicial disapproval, highlight a concerning reluctance to collaborate and a fundamental misunderstanding of its responsibilities.
For the CNMI to successfully rejuvenate its economy, the CPA must revisit and respect the principles of the reasonable 2007 AUA.
Reestablishing a cooperative relationship between the CPA and the airlines, as originally envisioned by the AUA, is essential. This step is not only crucial for resolving the current impasse but is also vital for fostering an environment conducive to commerce and travel, which are indispensable for the CNMI's economic recovery.
Sincerely,
Shaun Christian
President
STAR Marianas Air Inc.
San Jose
Tinian
The Commonwealth of the Northern Mariana Islands is at a critical juncture, with the urgent task of revitalizing its economy through enhanced investment, tourism, and business development.
Central to this challenge is the need to address the problematic relationship between the Commonwealth Ports Authority and the airlines, particularly concerning fees and services.
The CPA historically facilitated Airline Use Agreements that established fair service fees, a framework all airlines agreed to in 2007. However, the introduction of smaller aircraft by STAR Marianas Air in 2009, which did not require the full spectrum of CPA services, led to disputes.
The CPA's failure to adhere to the 2007 AUA terms resulted in STAR Marianas paying fees under protest and subsequently taking legal action.
An independent review supported STAR Marianas' grievances regarding CPA's overcharges and failure to comply with the agreed terms. Rather than seeking a resolution, the CPA attempted to increase fees in 2017 through proposed AUA amendments, which were unanimously rejected by all signatory airlines serving the CNMI.
In a unilateral move in 2021, the CPA terminated the 2007 AUA, imposing higher fees through local regulations.
This approach by the CPA has led to further legal confrontations, culminating in a 2023 court ruling against the CPA for violating the 2007 AUA terms, a decision that was affirmed upon appeal in 2024.
The CPA's persistent efforts to enforce exorbitant fees, despite judicial disapproval, highlight a concerning reluctance to collaborate and a fundamental misunderstanding of its responsibilities.
For the CNMI to successfully rejuvenate its economy, the CPA must revisit and respect the principles of the reasonable 2007 AUA.
Reestablishing a cooperative relationship between the CPA and the airlines, as originally envisioned by the AUA, is essential. This step is not only crucial for resolving the current impasse but is also vital for fostering an environment conducive to commerce and travel, which are indispensable for the CNMI's economic recovery.
Sincerely,
Shaun Christian
President
STAR Marianas Air Inc.
San Jose
Tinian