Defunct Marianas Southern Airways sued for antitrust violations

Marianas Southern Airways, which departed from the CNMI in March 2023, has been sued in federal court.
Photo: Delivered

Marianas Southern Airways, which left the Commonwealth of the Northern Mariana Islands (CNMI) in March 2023, was sued in federal court by then-competitor Star Marianas Air Inc. for violating the U.S. Sherman Antitrust Act.

The Sherman Antitrust Act of 1890 is a federal law prohibiting acts in restraint of interstate commerce and competition in the marketplace. It prohibits any agreement, conspiracy, or combination of business interests to restrain foreign or interstate commerce.

Last week, Star Marianas, through attorneys Richard Richards and Mark Scoggins, filed a lawsuit against Marianas Southern Airways and its president in the U.S. District Court for the CNMI.

In addition to Marianas Southern Airways, Star Marianas also named Southern Airways Express LLC and Marianas Pacific Express LLC as defendants.

Star Marianas filed six counts of Sherman Act violations against Marianas Southern Airways based on an $8 million sole source agreement entered into between the airline and the CNMI government under the previous administration.

In relief, Star Marianas asks the District Court to restrain the defendants from entering into 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 compensation in an amount to be determined at the hearing, and other compensation that the court deems just.

The lawsuit alleges that on March 21, 2022, Marianas Southern Airways entered into a single-agreement with the CNMI government to receive $8 million in federal funds under the American Rescue Plan Act.