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Airlines add seats to Guam this summer; GIAA and GVB in talks over 30% vs. 50% incentive dispute

July 24, 2025 | General Government Operations and Appropriations , Legislative, Guam


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Airlines add seats to Guam this summer; GIAA and GVB in talks over 30% vs. 50% incentive dispute
GIAA and airline officials told lawmakers July 24 that seat capacity into Guam increased sharply from May through August 2025, driven largely by Korean carriers adding second daily flights and seasonal service.

Deputy Executive Manager Ricky Hernandez presented seat data showing overall monthly seat capacity rising about 40% from May to August; he said Korean Airlines, Jin Air, Jeju Air and T'way had added frequencies in summer 2025. Hernandez said Korean Airlines added a second daily Incheon flight effective July 1 and other carriers planned third daily flights or seasonal services later in the year.

Airline incentives and a dispute: Jin Air and the Korea Guam Travel Association submitted written appeals after GIAA applied a 30% airport‑usage discount to some expanded services while the authority’s air service incentive program allows “up to 50%” for new service. Jin Air’s letter said a 50% discount had been verbally promised during recent meetings with GIAA and the Guam Visitors Bureau (GVB); GIAA acknowledged the letters and said it is working with GVB to find a path to fulfill expectations where possible.

GIAA said the airport can discount fees but cannot provide direct cash subsidies; the FAA requires non‑discriminatory treatment and that airports avoid revenue diversion. GIAA and GVB are discussing a shared-risk incentive structure (a guaranteed breakeven load factor) in which risk would be shared between carriers and destination partners rather than a single party bearing the whole subsidy.

Committee reaction: Senators asked GIAA to document the basis for any discount levels and to coordinate a single point of contact with GVB and the governor’s office so messaging to carriers is clear. Senator requests included a formal accounting of what discounts cost the airport and how GVB’s proposed $11 million marketing request would be applied across markets.

Ending: GIAA agreed to provide the committee with the incentive program application, calculations of fiscal impact by scenario, and updates on the airport/GBV shared-risk talks. Senators asked for a joint meeting with GVB and the governor’s office to align public messaging and review funding requests.

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