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CPA projects $715K in revenue losses

THE Commonwealth Ports Authority has projected airline revenue loss in the amount of $715,000 for fiscal year 2018 resulting from the recent pullout of Delta Airlines and the suspension of Jin Air and Hong Kong Airline flights.


CPA said it is now working with its various departments regarding cost-control measures and the need to monitor expenditures.
According to the report of the CPA board’s financial affairs committee, overtime will be suspended indefinitely effective April 1, 2018 and travel will be limited to only those required or is reimbursable.
The report also stated that for fiscal year 2019, CPA is projecting a loss of airline revenue in the amount of $1.302 million.
The report indicated that this loss includes Jin Air’s revenue calculation because the airline has not confirmed yet the return of its scheduled flights.
CPA said its comptroller is now working with the CPA department heads to cut the proposed FY 2019 budget in order to meet CPA’s debt-ratio requirement.
Delta’s last day of flight service on Saipan is on May 6, thus closing the Tokyo-Saipan route.
Jin Air has suspended its weekly Seoul-Saipan flights starting March 25 because of high fuel cost and high hotel rates.
Hong Kong Airlines has suspended its flights starting March 21 but will resume them on April 17.

Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/103144-cpa-projects-715k-in-revenue-losses

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