Marianas Southern Airways, which flew away from the CNMI in March 2023, has been sued in federal court. Photo: Supplied
Marianas Southern Airways, which flew away from the Commonwealth of Northern Mariana Islands (CNMI) in March 2023, has been sued in federal court by its then-competitor, Star Marianas Air Inc., for violating US Sherman Antitrust Act.
The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. It outlaws any contract, conspiracy, or combination of business interests in restraint of foreign or interstate trade.
Star Marianas, through attorneys Richard Richards and Mark Scoggins, last week filed a lawsuit against Marianas Southern Airways and its president with the US District Court for CNMI.
Aside from Marianas Southern Airways, Star Marianas also named Southern Airways Express LLC and Marianas Pacific Express LLC as defendants.
Star Marianas has filed six counts of violations of the Sherman Act against Marianas Southern Airways pursuant to an US$8 million sole-source contract between the airline and the CNMI government under the previous administration.
As relief, Star Marianas is asking the District Court to restrain the defendants from establishing any similar agreements that unreasonably restrict competition and create a "conspiracy to monopolize the CNMI airline industry."
Star Marianas also wants the court to award them damages in an amount to be determined at trial, and other relief the court may find just and proper.
According to the lawsuit, on 21 March, 2022, Marianas Southern Airways executed a sole-source contract with the CNMI government for receipt of federal funds through the American Rescue Plan Act in the amount of $8m.