GUAM AIRPORT FEES TO COST CONTINENTAL $5 MILLION

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HAGATNA, Guam (Pacific Daily News, April 1) - The Guam airport
agency's fee increases will cost Continental Micronesia $5 million in additional
expenses this year and may prod the airline to review the viability of
marginally profitable flights, an airline official said yesterday.

Airlines serving Guam already are struggling, in part because
wartime jitters and Japan's economic woes have dampened demand for travels to
the island. Japan Airlines and Continental Airlines have announced flight
reductions in some visitor markets.

The airlines encountered another economic turbulence last week
when the Antonio B. Won Pat International Airport Authority approved increases
in passenger fee and aircraft landing fee charges.

Airport Executive Manager William Thompson said Friday the
agency will implement the following fee changes beginning this month:

Wally Dias, staff vice president of sales and promotions at
Continental, said the increase in passenger fee is actually higher.

He said the airlines have been told the passenger fee will
increase from $11.85 to $23.60 per passenger.

The $18.41 passenger fee is what the average will be for this
year, Dias said.

Dias said the fee increase is enough to make Continental
Micronesia re-evaluate the viability of flights he described as marginally
profitable.

While Continental is trying to get fee reductions in Cleveland
and other airports in the United States because of the slump in travel demand,
Guam's airport has made a decision to raise fees, according to the airline
official.

''It's the opposite direction of what other airports are
doing,'' he said.

The Guam airport's fee increases also are contrary to the
government of Guam's goal to improve the island's economy, according to Dias.

April 1, 2003

Pacific Daily News: www.guampdn.com 

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