A Cabotage Exemption Could Break the CNMI’s Airfare Trap

By Glenn Smith

I was recently trying to book a trip off-island and found myself facing a reality that many CNMI residents know all too well: we have very limited airline options and are paying the price for it.

When I contacted the only airline currently serving our market, I could not get a ticket to Japan for ten days. I could not even get to Guam until the 17th because flights were completely booked. Looking at flights to Honolulu was even more shocking. The only available ticket for my travel date was approximately $8,000. The next available coach-class ticket was about a week later and cost nearly $3,000.

This raises an important question: When will our elected representatives seriously push for a cabotage exemption for the CNMI?

The current situation effectively creates a monopoly. Residents, businesses, students, medical travelers, and families are left with limited choices and exorbitant airfare costs. Air transportation is not a luxury in the CNMI—it is a necessity. We are an island community dependent on air travel for medical care, education, business, and family connections.

A cabotage exemption could significantly improve competition and lower costs. Imagine foreign carriers from Manila, Incheon, or Tokyo operating flights that serve both Saipan and Guam. A carrier could fly from its home country to Saipan, allow Saipan-bound passengers to disembark, pick up passengers traveling between Saipan and Guam, continue to Guam, and then reverse the route on the return trip.

Such an arrangement would create additional seat capacity, introduce competition, and likely drive airfare prices down substantially. The primary beneficiaries would be the residents of the CNMI rather than a single airline operating in a protected market.

For years, the CNMI has discussed the need for affordable transportation and economic development. A cabotage exemption would not solve every challenge we face, but it would be a meaningful step toward reducing travel costs, increasing accessibility, and strengthening our connection to the region.

The question is not whether the CNMI would benefit from greater airline competition. The question is whether our leaders are willing to continue pushing for the policy changes needed to make it happen.

Glenn Smith Saipan, CNMI


Editor’s note: The views and opinions expressed in this op-ed are those of the author and do not necessarily reflect the views of NMI News Service or its staff. All assertions are the sole responsibility of the writer. To submit an op-ed for consideration, email your piece to brad.ruszala@nminewsservice.com.

NMI News Service