A proposed mid-December start date for MACS - Micronesian Air Connection Services is looking increasingly uncertain, with the start-up failing to yet secure a qualifying certificate and operating authority. MACS wants to operate scheduled passenger services around the Northern Marianas Islands and Guam.
According to the Saipan Tribune, the start-up is seeking tax waivers to allow it to invest that money in commencing operations. Specifically, it has applied to the Commonwealth Economic Development Authority (CEDA) in the Northern Mariana Islands for a qualifying certificate, which gives successful applicants the right to certain specified tax waivers or reductions.
Despite applying for the certificate in September, CEDA has yet to decide on it. The government agency held a meeting on the application on December 10, calling in John Stewart, the ultimate owner of MACS, to discuss the matter. By the end of the meeting, a CEDA spokesperson said it still needed more information. MACS had hoped to start scheduled services on or around December 18.
MACS is a trading name for Szabo Aerospace, which is a wholly-owned subsidiary of Micronesian Air Cargo Services LLC, a Guam-based entity controlled by Stewart and his wife Paula Stewart. In October, ch-aviation reported on an application by Szabo to commence scheduled passenger flights using Cessna (single turboprop) 208Bs. On November 19, the US Department of Transportation (DOT) asked Szabo for further information concerning its application, specifically details on Szabo's management, compliance records, financial data, and ownership structure.
The DOT is yet to grant Szabo its commuter air carrier authority, which also prevents the company from commencing service under MACS.
CEDA reportedly offered Stewart 90 days to submit the required information; he told them he could furnish it by the close of business on December 11. CEDA has scheduled a meeting on December 13 to consider the additional information.
