A new passenger aviation company, Micronesian Air Connection Services (MACS), is planning to launch interisland flights between Saipan, Tinian, Rota and Guam, promising more affordable rates and improved service.
Currently, United Airlines and Star Marianas Air operate these routes.
MACS is owned by J&P Holdings, which has been operating in the Commonwealth of the Northern Mariana Islands (CNMI) for over 30 years. It also operates Skydive Saipan, Waco Adventures, and Micronesian Air Cargo Services.
The airline plans to invest $8.27 million in the new commuter flight service, with a fleet of spacious aircraft to connect the islands.
To ease its financial burden, MACS has applied for a qualifying certificate with the Commonwealth Economic Development Authority (CEDA). If approved, the certificate would grant the company a 25-year tax exemption.
According to MACS, the qualifying certificate would reduce their tax burden, “making it more financially feasible to begin scheduled passenger flights in the CNMI and to help subsidize their estimated $8.2 million investment into the CNMI passenger aviation industry.”
CNMI Governor Arnold I. Palacios expressed his support for the proposal. “We should give them [incentives] and incentivize them, but we leave it up to the experts and [CEDA] to make those determinations,” Palacios said. “What is the reasonable level of incentivizing a company like MACS air.”
MACS's bid for tax exemption status was met with support from many community members in Saipan.
