Taking hit from Continental's dropping of Saipan-Manila flights

It's not that we're all going to be stranded on this island -- at least not yet.

But Continental Micronesia's decision to drop its Manila-Saipan flights effective July 16 spells a disaster.

But who can blame Continental with the soaring price of fuel? And low demand because of a drop in the number of nurses from Manila taking the NCLEX here?

Speaking of low demand -- some in the community have this outrageous theory that the reason why only a few now travel off island is the immigration federalization. (When will this ever stop?) They say only a few workers want to exit fearing they will have difficulty coming back.

But seriously, can CNMI patients needing medical attention in Manila endure hours of layover or transit through Guam, Japan or South Korea? (Not to mention the inconvenience on weekend shoppers in Manila)

How many CNMI businessmen will be affected?

How many Filipinos will be affected? This group -- because most of them dont have US visas -- will be forced to go through Japan or Korea and wait for eight more hours to take the connecting flights to Manila.

What will make Continental change its mind?

How about limiting the frequency of the flights instead of dropping the service altogether? A once-a-week direct flight to Manila will be better than not having a direct flight at all.

Here's Continental's press release:

CONTINENTAL MICRONESIA ANNOUNCES SCHEDULE REDUCTIONS
Airline cites skyrocketing fuel costs and lower customer demand as factors

HAGÅTÑA, GUAM, June 13, 2008 – Continental Micronesia announced today that it will discontinue service between Saipan – Manila effective on July 16, 2008. In addition, CMI will suspend flights from its Guam hub to Hong Kong and to Denpasar, Bali effective July 28, 2008 and October 2, 2008, respectively.
The skyrocketing increase in fuel costs has severely impacted the viability of
these markets. Since January 2007, jet fuel costs have spiked dramatically, increasing almost $100 per barrel or more than 140 percent. Each dollar of oil increase has an annual impact to Continental Airlines of $45MM.
“While these are very difficult decisions to make, the record fuel costs, combined with lower customer demand in these markets, lead to the decision to suspend service,” said Continental Micronesia Chief Executive Officer and President, Mark Erwin.
“These schedule changes in Asia Pacific will result in a four percent year-over-year decline in CMI mainline capacity and combined with the April 2008 suspension of Nagoya – Honolulu service will result in 21 percent year-over-year decline in a CMI mainline capacity (available seat miles, or ASMs) in the fourth quarter. These changes are part of the worldwide mainline system capacity reduction previously announced by Continental Airlines last week,” said Erwin.
The Saipan – Manila market is also severely impacted by the loss of Manila
customers traveling to Saipan to take the National Council Licensure Examination (NCLEX) nursing examinations required for Registered Nurse licenses by U.S. states.
The National Council of State Boards of Nursing initiated NCLEX testing in Manila in August 2007, eliminating the necessity for nursing candidates in the Philippines to travel to the Commonwealth of the Northern Marianas (CNMI) to take the examination.
“Despite our best efforts, working with the Marianas Visitors Authority and the government of CNMI, we were unable to generate sufficient customer demand from the Philippines to replace the loss of our customers traveling to Saipan to take the NCLEX examinations. We will continue to offer our valued customers in the CNMI and Philippines daily service with our connecting service via our Guam hub,” said CMI Asia and Micronesia Director of Sales and Marketing David Kendell.
Customers who are currently booked on flights affected by the capacity
reductions will be contacted by CO to arrange alternate flights or, at the election of the customer, a ticket refund.
Continental Micronesia is headquartered in Guam and operates a Pacific hub from the A.B. Won Pat International Airport. A wholly owned subsidiary of Continental Airlines, Continental Micronesia employs 1,500 men and women and offers more than 236 departures each week between 23 cities throughout the Pacific Rim, the Micronesian Islands and Hawaii with a fleet of 13 Next-Generation Boeing 737 and 767 aircraft. In addition, Continental Micronesia and its code share partner Cape Air operate 86 weekly commuter service flights between Guam and the Commonwealth of the Northern Mariana Islands.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 145 domestic and 138 international destinations. More than 550 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year.
Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2008 list of World’s Most Admired Companies. For more company information, visit continental.com.
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