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 CPA approves 75% discount for airport tenants

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THE Commonwealth Ports Authority board of directors last week approved a 75% discount in tenant fee in response to the impact of the Covid-19 pandemic on businesses renting office spaces and other facilities at the Francisco C. Ada/Saipan International Airport.

The 75% discount, as recommended by the board’s financial affairs committee, takes effect from July to December 2020.

With the 75% discount, CPA stands to lose $126,943 a month beginning July and up to December. The discount will result in a reduction of about $380,800 in CPA’s revenue projection for the last quarter of fiscal year 2020, and $383,300 in the first quarter of fiscal year 2021.

Commonwealth Ports Authority Chairwoman Kimberlyn King-Hinds speaks during a financial affairs committee meeting in the Aircraft Rescue and Firefighting classroom on Thursday last week. Photo by Emmanuel T. Erediano

During the financial affairs committee meeting, CPA Chairwoman Kimberlyn King-Hinds said granting relief to the tenants is necessary due to the lack of activities at the airport.

The islands’ tourism industry has  shut down since February because of the Covid-19 global pandemic.

In his report, financial affairs committee chairman Ramon Tebuteb said “the austerity measures will remain in place until CPA is able to financially sustain full operations,” adding that CPA has sent copies of its proposed budget to the signatory airlines for comments.

 

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