President Tommy Remengesau, Jr. said during his State of the Republic Address (SORA) in Ngerelmud on Tuesday that the Delta Airlines, which is cutting off its Palau-Saipan route effective May 6, did not end its service here because they are not making money.
Delta Airlines, according to Remengesau, left because “they had a consolidation business plan that did not include flying to Palau.”
“We must not panic because they have chosen to leave us. We must simply identify new partners, and we are working diligently to do so,” Remengesau said.
However, in a previous report, the Delta Headquarters informed agencies in Palau in early February this year about its decision to pull out the service here including that of Saipan’s citing the “lower demand” in the Micronesia market as the main reason for the decision.
Remengesau said in his speech that Palau must select long-term viable partners that share the country’s visions on tourism.
The president even cited that to accomplish this vision, the Foreign Investment Law (FIL) was revised to “confront issue of front businesses that do not benefit Palauans, do not pay their fair share of taxes and do not share the long term goals of a Pristine Paradise Palau.”
Remengesau also mentioned the high-end tourism amendment to the FIL that requires quality investment and tourism facilities.
Remengesau even urged Palauans to support the FIB in its efforts to enforce the FIB law and ensure foreign-owned businesses here follow the rules and pay their fair share of taxes. (Rhealyn C. Pojas/Reporter)