Emergency Subsidy for Jeju Air
The Marianas Visitors Authority (MVA) board has approved a $1.5 million sole-source contract to maintain direct air service between South Korea and Saipan. The move comes as the Commonwealth of the Northern Mariana Islands (CNMI) struggles to recover from the impact of Super Typhoon Sinlaku.
Acting MVA Managing Director Judy C. Torres confirmed the contract, which is pending final approval from the Office of the Attorney General, is intended to secure Jeju Air’s presence through October 24. Jeju Air is currently the only South Korean carrier maintaining service to the territory following T’Way Air’s departure in May.
“If we do not grant this sole-source justification, will Jeju still continue to fly? No. Not at all,” Torres told the board during Thursday’s meeting.
Philippine Airlines Delay
Adding to the logistical strain, Philippine Airlines (PAL) has postponed its planned return to Saipan until October. Commonwealth Ports Authority board chair Bart Jackson confirmed the delay, noting that the territory’s airline seat capacity remains down 66 percent from 2018 levels.
The loss of carrier connectivity has led the MVA to seek the restoration of nearly $1 million in tobacco settlement funds to bolster airline service stabilization and destination marketing. Officials warn that without stable air access, the path to economic recovery remains blocked.