Guam and CNMI delegates introduce airline cabotage exemption

Delegate James Moylan introduced H.R. 8786, which would provide a special cabotage exemption for foreign carriers seeking to fly from Guam to another U.S. Port in hopes of lowering airfare costs.

This would allow for competition for certain routes, which in turn should lead to more competitive pricing which ultimately benefits the consumers.

Delegate Gregorio “Kilili” Sablan of the CNMI is the Democrat co-lead for the legislation.

Under current federal law, a foreign carrier can't transport passengers or cargo from one U.S. port to another. Presently, United Airlines is the only domestic carrier that provides routes between Guam and the CNMI, as well as Guam and Hawaii. 

If H.R 8786 were to become law, a foreign carrier could provide services between Guam and the CNMI, Guam and Hawaii, or even consider a route between Guam and one of the contiguous states.

“This is an issue which has been building, and with all additional concerns being raised  recently, from United's pet policy to and from Guam, and the ending of the native bird repatriation program, along with $500 airfare costs between Guam and Saipan, something needs to be done,” said Moylan. 

“This is going to be a massive undertaking, but we are ready. Just as the unions protect the domestic ships industry, we will face solid challenges from many entities, particularly from the incumbent carrier. This is also an issue which will be a marathon and not a sprint. In other words, it needs to build some momentum and will take time. We have and will continue to build an education campaign on why H.R. 8786 is so important for the Marianas,” added Moylan.

Based on research of the average costs of domestic travel, leaving from the Guam International Airport to any airport across the nation is considered the most expensive route. 

The House Armed Services Committee seeks ways to improve the quality of life for servicemembers living away from home and the top concern for those residing in Guam is the cost of airfare.

“Servicemembers, along with island residents, face challenges trying to attend weddings, funerals, or graduations in the mainland. The same goes with former residents wanting to fly back. Competition is the only way we will get the costs to reduce, and that is the intent of this Legislation,” he added. 

“I also want to emphasize that this measure is in no way a testament to the efforts of United Airlines Guam management, staff, and flight crew. They continue to go above and beyond by being a community partner while providing exemplary service both in flight and on the ground, and I thank them for their hard work. This issue is about decisions made on a corporate level in Chicago,” he said. 

Moylan's team is discussing the measure with relevant committee staff to try and identify a larger legislative vehicle to add the measure as an amendment.