Star Marianas Air (S2, Tinian) has threatened to end all scheduled services in October if a long-running fee dispute with the Northern Mariana Islands' Commonwealth Ports Authority (CPA) is not settled. It says the current fee structure imposed by the CPA, which owns and manages Rota International, Saipan, and Tinian airports, is unsustainable.

Star Marianas is the US territory's only scheduled passenger airline and relies on a fleet of eight Piper (single piston) PA-32-300 Cherokee 6s and six Piper (twin piston) 31-350 Navajo Chieftains to link the capital Saipan with Tinian, Rota, and Guam International. The CPA claims that it has accrued millions of dollars in unpaid fees, plus interest on that debt. Star Marianas maintains the CPA has failed to adjust fees and charges to reflect the actual cost of services provided to the airline per the terms of a 2009 airport access agreement. The dispute has resulted in several legal actions, none of which appear to have adequately resolved the matter.

This week's threat to withdraw flights was sparked by a recent 30-day invoice the CPA sent to Star Marianas Air, which owes USD1,294,497.16 in airport fees for the period October 1, 2022, to May 2024. Specifically, Star accrued USD573,881.61 in airport fees at Saipan, USD286,987.98 at Tinian, and USD433,627.57 at Rota.

"The primary challenge we face is not a lack of willingness on Star’s part to continue providing vital air services but rather the unsustainable fee structure imposed by the Commonwealth Ports Authority," Star Marianas chairman Robert Christian wrote in this week's letter to local politicians. "These fees make it economically unviable for us to operate under the current conditions. The current fee methodology lacks transparency, detailed cost allocation, and a fair treatment of common use areas, all of which result in charges that do not accurately reflect our actual usage of airport facilities and services."

The letter received an immediate response from local political leaders. Tinian Mayor Edwin Aldan said terminating interisland air services would profoundly impact local economies and livelihoods.

Christian wants a meeting between Star Marianas, the territory's governor, the Tinian Legislative Delegation, the Tinian Municipal Council, and the CPA to attempt to nut out a new fee agreement.

Star Marianas' only other competitor, Marianas Southern Airways (Saipan), abruptly pulled out of the islands after the governor tore up a sole-source contract in early 2023.