New airline proposes to connect NMI with Australia and Asia | New
The board of directors of the Marianas Visitors Authority listened to a presentation Thursday by Marianas Pacific Airlines, a start-up supported by Pacific Rim Land Development.
The new airline, which is still in its infancy, is locally owned and operated, and aims to link CNMI with Australia and North East Asia with the aim of creating new business opportunities for tourism. , export and import businesses, while facilitating travel for Commonwealth services.
It will operate as a US Federal Aviation Administration approved Part 121 scheduled service air carrier, allowing unrestricted operation, with 52 flights per week on seven routes over the next three years using three state-registered aircraft. -United.
The planned routes will provide access to more than 313 million people in four countries in just over six hours of flight.
William Giles and James Blake, who represented the company, provided an overview of what CNMI can expect from the airline.
Through this venture, the company is expected to revive CNMI’s tourism economy with more than 140,000 tourists from new and existing destinations.
More than 434,000 hotel nights are thus planned, of which MVA would receive 78% of room taxes, or $ 10.784 million.
According to the projections of the new airline, the taxes on the rooms generated by Marianas Pacific would amount to 13.8 million dollars; taxes related to hotel and hospitality employees, $ 200,000; airline employee taxes, $ 250,000; and an additional tax on gross business income, $ 11.55 million, for a total of $ 25.8 million in annual contribution to tax revenues.
The new airline will also provide freight and passenger service to promote new industries in the CNMI.
Marianas Pacific plans to bring more than 7,000 tonnes of essential goods, such as food, spare parts and electronics, from multiple destinations, an amount expected to increase to 8,500 tonnes by year five. .
This would include reliable delivery of fresh meats, seafood and vegetables of up to 500 tonnes per year from Australia alone.
The company offers a “gate to plate” service for express delivery within two days.
The new airline officials said the company will increase the tourism base in higher-yielding market segments to improve overall economic stability.
Ticket sales are expected to reach $ 70 million and $ 10 million in freight sales, with total sales reaching $ 120 million in five years.
It is estimated that $ 58 million will be spent with an economic value of $ 231.34 million per year in CNMI, the airline said.
The company also predicts that this venture will result in increased tax revenue, as well as the recruitment of medical and skilled labor.
The airline said it intends to ensure self-sufficiency, safety and employment for the local CNMI population, predicting that its more than 165 direct jobs will help create 466 indirect jobs.
To ensure success, Marianas Pacific seeks a partnership with the CNMI government and commercial entities.
Blakes said marketing and promotion is needed in Australia to raise awareness of the Commonwealth and what it has to offer.
He noted that Australians will not visit the Commonwealth for its beaches, given that it already has its own beaches, but will visit for the cultural experience.
Giles said the new airline could be up and running in about a year, noting the company wanted to work with MVA to help with “travel bubbles.”
“We can get these people in pretty quickly … Helping you helps us … Let us know when you are ready … Give us the opportunity to work even faster than expected,” he said. .
Ivan Quichocho, Board Member of MVA, said: “We want you to be successful.”
Other board members who were also present for these discussions were President Ellsbeth Viola Alepuyo, Vice President Gloria Cavanagh, Secretary Agida Quitugua, Thomas Liu, Warren Villagomez and Marian Aldan-Pierce who joined via Zoom.