Demand For Fair Prices from United Airlines for Saipan to Guam Route

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The Issue

We, the undersigned residents of the Commonwealth of the Northern Mariana Islands (CNMI), Guam and the rest of Micronesia, together with concerned global citizens, are writing to express our profound dissatisfaction with the current exorbitant airfare prices charged by United Airlines for flights between Saipan International Airport (SPN) and Guam (GUM). The price of $580 for a 120-mile, 25-minute flight is not only unreasonable but also unjust, severely impacting our ability to engage in essential activities such as family visits, health-related travel, business, and educational pursuits. This situation poses significant barriers that isolate our community within the Marianas, undermining our shared cultural connections and economic sustainability.

The monopoly held by United Airlines on this crucial route, due to cabotage restrictions that limit competition, has allowed for unchecked price setting, leading to inflated airfare prices. This monopolistic practice is particularly concerning given the lack of concrete evidence pointing to increased operating costs that would justify such an abrupt and steep fare increase from $274 to $580 shortly after the cessation of pandemic-related restrictions. The rationale provided by the airline for this price hike has been unsatisfactory and generic, failing to address the direct impact on the residents of the CNMI and the broader implications for our economy and accessibility.

The sudden and unjustified increase in airfare prices places an undue financial burden on the residents of the CNMI, further isolating our communities and deterring potential tourists. This situation not only affects our local economy by depriving it of crucial tourism revenue but also limits R&R travel opportunities for military personnel stationed in Guam, affecting their morale and potentially reducing economic benefits to the CNMI’s local businesses. Additionally, the substantial price discrepancy encourages travel to foreign destinations over domestic ones, leading to a capital exodus that places local businesses at risk.

In light of these concerns, we demand:

  • Immediate Reconsideration of Airfare Pricing: United Airlines must review and adjust the airfare pricing strategy on the Saipan-Guam route to ensure fairness and reasonableness, reflecting the actual distance traveled.

  • Review and Reform of Cabotage Regulations: A critical examination and reform of current cabotage regulations that hinder competition and negatively impact accessibility within the CNMI. These regulations should be adjusted to foster a competitive environment that benefits both residents and businesses.

This petition represents a united call for justice, economic sustainability, and regulatory reform aimed at benefiting not only the residents of the Marianas but also contributing to a more vibrant and accessible region for tourists and military personnel alike. We urge United Airlines and relevant regulatory bodies to take immediate action towards ensuring pricing fairness and making necessary regulatory adjustments.

By signing below, we join in sending a formal complaint letter to United Airlines demanding a reconsideration of their pricing strategy on this essential route, as well as advocating for the reform of restrictive cabotage regulations. Together, we seek to foster a more connected, accessible, and economically vibrant Marianas.

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