DELEGATE MOYLAN INTRODUCES LEGISLATION TO HELP SUBSIDIZE GUAM-CNMI ROUTES

(Hagatna, Guam) With the intent of seeking subsidies to help reduce the fares for flights between Guam and the CNMI, Delegate James Moylan introduced legislation to add the route between the two territories as part of the Essential Air Service (EAS) program. The EAS is a federal grant program created by Congress and administered by the Department of Transportation which would ensure small rural communities are still receiving air services.

Under the EAS, an airline can seek funding to help offset some of the airfare costs, which in turn would result in a reduction of the total price for the passenger. Today, it costs nearly $500 for a round-trip ticket between Guam and the CNMI, and if the EAS was applied, depending on the amount of a subsidy, the traveler could experience a savings of a few hundred dollars.

“As Congress sets forth to entertain the FY25 Transportation Appropriations bill, the funding of the EAS will be included in the measure. Our office has submitted amendments to not only increase this funding but also add the Guam-CNMI route to the program, hence the timing of the legislation. We have also reached out to the Defense Travel Agency to seek a report on the amount the Department of Defense spends annually on the flights between the two territories, as securing their support is paramount,” stated Delegate Moylan.

The measure supplements Delegate Moylan’s advocacy for a special cabotage exemption for Guam and the CNMI, which would allow foreign airline carriers to move passengers and cargo between and up to two U.S. ports. This would allow for competition from carriers from Korea, Japan, and the Philippines, which would assist in reducing the costs of travel. The legislation was introduced last month, and efforts will be made to pursue an amendment in the upcoming appropriations processes as well.

“The EAS would help reduce the costs of travel between Guam and Saipan, just as it does for many other flight routes between small communities throughout the nation. We are approaching the high costs of airfare from various angles and have created an extensive education campaign in Congress to state the case for Guam, which includes justifying both the cabotage exemption and the need for the EAS subsidies. Considering the limited funding in the EAS, we anticipate many challenges in the process but will continue to maintain the course,” added Delegate Moylan.

The legislation is co-led by Delegate Gregorio “Kilili” Sablan of the CNMI.

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