MVA: Financial & policy support needed to stabilize flights

08/22/2025 - The Marianas Visitors Authority (MVA) has met with current and potential airline partners earlier this August in Korea in an effort to stabilize air service to The Marianas. The tourism office warns that without immediate intervention, additional cuts to flights are expected in the coming months.

MVA Board Chairman Warren Villagomez and Managing Director Jamika R. Taijeron met with five airlines in Seoul in mid-August to seek commitments for a consistent flight schedule, which they say is the backbone of tourism recovery and growth.

“Air service is the single most critical factor for our tourism economy,” said MVA Chairman Villagomez. “Our meetings confirmed that unless we act quickly with financial support and targeted solutions, Saipan will continue to lose flights and seats. This will directly affect our economy, jobs, and the future of our islands.”

Current Flight Reductions

Jeju Air, which operates twice-daily flights from Seoul to Saipan, will suspend its night flight from September 8 to 30 due to low ticket sales and fares. The airline is also considering suspending flights from October 12 to 25, though that decision has not yet been finalized.

T’way, which operates daily flights from Seoul, has suspended its service for several periods in the coming months: August 18 to September 28, October 14 to November 22, and March 15 to 31, 2026.

“These cancellations are, for the most part, the result of the oversupply of seats to Guam following the Korean Air and Asiana merger,” said Taijeron. “Because of mandates tied to the merger, airlines are required to maintain seat capacity in Guam based on their air seat supply in 2019. This has driven down ticket prices and shifted demand there. Saipan fares also dropped, but unlike Guam, our market cannot sustain operations with such low yields. Airlines are responding by reducing or suspending flights here. This is the unique challenge we face today.”

Factors Driving the Decline

The Marianas’ air service has been critically impacted by multiple pressures just as the destination was making recovery progress post pandemic:

•       Oversupply to Guam: The Korean Air–Asiana merger mandates have diverted demand away from Saipan and destabilized our market.

•       Currency exchange: The strong U.S. dollar against the Japanese Yen and Korean Won makes other non-U.S. destinations more affordable and appealing.

•       Airline priorities: Airlines achieve higher profits operating multiple short-haul routes within Asia rather than a long-haul to Saipan.

•       Industry shortages: Global aircraft delivery delays, particularly with Boeing, are limiting availability across all carriers.

•       Carrier exits: Asiana Airlines exited the Saipan market in Summer 2024 during its merger with Korean Air.

Seat capacity has plunged from approximately 760,000 in FY 2018 to just 260,000 projected for FY 2025—a 66 percent overall loss, including 59 percent from Korea and a 100 percent loss from mainland China, once our second-largest source market.

Path Forward: What Needs to Happen

“Every day we delay, the situation worsens,” Taijeron stressed. “The Marianas needs a substantial and immediate financial injection to stabilize flights. Without it, our recovery stalls, businesses struggle, and families suffer.”

MVA is taking several steps, including:

•       Reaffirming China access: Requesting the U.S. Department of Transportation to reaffirm and operationalize Annex VI of the U.S.–China Air Transport Agreement so it functions as originally intended.

•       Strengthening Japan relations: Reinforcing partnerships with influential stakeholders and developing programs to attract Japanese travelers.

•       Supporting China market resumption: resuming flights from Hong Kong Airlines on September 21.

•       Seeking U.S. assistance: Following meetings with the U.S. Department of Transportation, MVA will submit a formal request for financial resources to improve air access to our destination, and explore a temporary, restricted cabotage waiver to allow non-U.S. carriers to provide essential service.

•       Building visitor demand: Launching a new sustainability initiative this month to support the development of new products, services, and experiences that align with global travel trends. MVA is also emphasizing the importance of content creation to generate more awareness of The Marianas in overseas markets, helping to stimulate interest and strengthen demand for travel to the islands.

•       Reintroducing The Marianas to the world: MVA is advancing a global branding project, scheduled for launch in October, to reintroduce the destination with a fresh brand and perspective that highlights the islands’ culture, people, and uniqueness.

Call to Action

“This is a tough situation, but it gives us the chance to reset and reintroduce The Marianas to the world” Chairman Villagomez said. “Government leaders must move quickly to provide financial and policy support to stabilize flights. At the same time, our businesses and community must do our part by building demand—enhancing the on-island experience, investing in content creation that raises awareness of The Marianas abroad, and supporting the global branding launch that will reintroduce our islands to the world with a stronger identity.”

Taijeron concluded: “Tourism is our only industry. Protecting air service while growing visitor demand protects jobs, revenue, and the future of our islands until we can establish another viable industry that can share the economic burden. This is the time for all of us—government, business, and community—to work together to overcome this challenge. We cannot afford not to prioritize our only industry.”