More Delays to Start of Micronesian Air Connection Services

The US Department of Transportation (DOT) has asked Guam-based Szabo Aerospace to provide additional information before it will grant a commuter air carrier certificate for Szabo to begin operating scheduled passenger flights around the Northern Marianas Islands.

Damon Walker, DOT Transportation Industry Analyst, wrote to Szabo on May 2, 2025, asking for extra information.

Szabo wants to use one of its nine-passenger Cessna 208Bs (known as Cessna Caravans) between Gum (GUM) – Rota (ROP) – Tinian (TIQ) – Saipan (SPN) up to three times per day seven days per week. The airline would be known as Micronesian Air Connection Services.

Szabo is owned by a company called Micronesian Air Cargo Services. That company is ultimately owned by a local man, John. J. Stewart and his wife, Paula Stewart. Szabo applied for the Micronesian Air Connection Services certification in 2024. Since then, DOT has made several requests for additional information. However, this is not unusual when small carriers wish to change their certification status.

This time, DOT wants information on four points, including:

- Szabo Aerospace’s failure to respond to an earlier request for pre-operating expenses that remain unpaid. DOT says if Szabo Aerospace expects to incur no remaining pre-operating expenses, it should tell them.

- Szabo previously told DOT that the Stewart’s private company, J&P Holdings, had established a USD3.5 million loan to support its proposed operations and that USD2.87 million was undrawn. DOT wants to know the repayment terms, the amount remaining under the loan, and also see a letter from the lender confirming that funds drawn on the loan may be used to support Szabo proposed commuter operations and working capital needs.

- Szabo Aerospace told DOT it intended to acquire an additional Cessna 208B Caravan in late 2024 and another in late 2025. DOT wants to know if this has happened.

- DOT also wants Szabo to sign paperwork in connection with the Warsaw Convention, which outlines passenger liability limits and airline defences, among other things.

If it gets in the air, Micronesian Air Connection Services will break the Star Marianas monopoly on inter-island flights around the Northern Marianas. Star Marianas is an established carrier but is locked in a battle with the Northern Marianas Island’s government over a longstanding debt and constantly threatening to cancel or suspend routes. The government wants an alternative airline.

A previous competitor, Southern Marianas Airways, abruptly pulled out of the territory after a change of government and the tearing up of  a sole source contract.

The DOT asks Szabo Aerospace to respond with the required information within fourteen days.

Photo: Textron Aviation