A second inter-island airline is close to being set up in the Northern Mariana Islands. Photo: Supplied
A second inter-island airline is close to being set up in the Northern Mariana Islands.
It comes after the government approved a tax abatement of 22 years for Micronesian Air Connection Services, and also approved its qualifying certificate (QC).
RNZ Pacific's Northern Mariana Islands correspondent, Mark Rabago said there's been ongoing problems with the current inter-island service which has threatened to pull out of the US territory.
The Commonwealth Economic Development Authority QC program was established in December 2000. Under the program, tax benefits are given to entice businesses to put up new investments in the CNMI or to assist existing investors in expanding their operations.
"They will be not paying tax for 22 years," Rabago said.
"They're planning to invest approximately US$8.2 million in aviation activities, including what I said about the inter Island air passenger service.
He said the initial service is scheduled to start within the next 30 to 60 days, and people in the US territory are thrilled a new inter-island airline is looking to join the market.
There is currently only one airline servicing the islands which has been squabbling with the Ports Authority, even threatening to pull out of the territory.
Rabago said some businesses are jealous about the tax abatement, but most people couldn't be happier.
"They have an alternative airline that could service their needs, and as everywhere in the world, competition actually brings the prices down, and the service is better.
"So it's a win, win, I think, for the CNMI."
Last week, Governor Arnold Palacios approved and issued a qualifying certificate for J&P Holdings, MACS' parent company.
J&P Holdings co-owner John Stewart said the approval of MACS' QC program application marks an important milestone for air transportation in the CNMI.
"As 30-year residents of these islands, our family and team understand the vital importance of reliable air service to our community's prosperity," he said.
"Additional flight options will support our hotels, restaurants, tour operators, and local businesses as we work to reestablish our islands' pre-COVID position in the Pacific tourism market."
