By Bill Jaynes
The Kaselehlie Press
August 25, 2026
Guam – A Guam-based consulting firm is circulating a preliminary proposal among Micronesian leaders suggesting that Palau, the Marshall Islands, Kiribati, and the Federated States of Micronesia explore jointly establishing a regional airline — an idea its author says is intended to start a conversation rather than present a completed feasibility study.
Tewid Meresbang, CEO and co-founder of Pacificnesian Equities, said the company sent the report to several government ministers in Micronesia and to organizations in Palau expected to participate in or help shape discussions surrounding the Pacific Islands Forum.
Pacificnesian Equities has not been invited to make a presentation at the Forum, Meresbang told The Kaselehlie Press.
“This was last minute so we weren’t invited or approved,” he said by email. “We hope that by sending this report to several leaders, they can initiate conversations about an intergovernmental airline carrier and seeking alternative and collaborative ways to reduce our dependence on monopolistic airlines.”
Meresbang said the firm hopes to conduct additional research and develop the concept sufficiently to seek a formal presentation at a future Micronesian Islands Forum and Pacific Islands Forum.
The six-page document, titled Feasibility Report: Intergovernmental Aviation Consortium, proposes a jointly owned regional carrier serving Palau, the four FSM states, the Marshall Islands, and Kiribati, with connections to Guam and Honolulu. Its stated objectives are improved regional connectivity and a target round-trip fare of $400 for resident travelers.
Despite its title, Meresbang cautioned that the document should not be regarded as a completed feasibility study.
“We conducted a brief research with AI support so we can’t confidently say we did a thorough and complete research, therefore the note at the bottom,” he told The Kaselehlie Press.
The report itself ends with the disclosure: “This is an inspiration report developed using AI.”
Meresbang said the disclosure was included specifically because the work is preliminary. He described the firm’s objective as encouraging Pacific leaders to consider whether greater regional cooperation could produce a transportation system that better serves island communities.
“Our main objective of the report is to inspire our leaders to have discussions at the PIF about collaborating in ways that connect us to help build self-sustaining systems that benefit our community,” he said.
Under the concept outlined in the report, the four participating governments would enter a multilateral aviation agreement and create a jointly owned holding company, with each country initially receiving a 25 percent interest. The proposed board would have equal representation from the participating countries, with major scheduling and aircraft allocation decisions requiring a supermajority.
The concept also proposes distributing various airline functions among the participating countries. Palau would house corporate and legal headquarters; the FSM would host primary flight operations and turboprop maintenance; the Marshall Islands would serve as the financial and accounting center; and Kiribati would host catering and regional supply operations.
The proposed east-west route would stretch from Palau through Yap, Chuuk, Pohnpei, and Kosrae to Majuro and Tarawa. Additional routes would connect Palau and the FSM with Guam and the Marshall Islands with Honolulu.
The preliminary fleet concept calls for one leased regional jet, such as an Airbus A220-100 or Boeing 737 MAX 7, and two turboprop aircraft, such as ATR 42-600s, for shorter routes and airports with more limited runway infrastructure.
The report estimates startup capital of between $15 million and $35 million, assuming aircraft would be leased rather than purchased. Divided equally, that would require an initial contribution of between $3.75 million and $8.75 million from each participating government. It estimates annual operating costs for the three-aircraft network at between $20 million and $45 million.
Those figures, however, are part of the AI-assisted preliminary concept and have not been established through the kind of detailed market, regulatory, engineering, or financial analysis that would ordinarily accompany a formal airline feasibility study.
One of the proposal’s central ideas is a $400 round-trip fare for residents of the participating countries. The report assumes an estimated underlying passenger cost of $650 round-trip and proposes making up the difference through a combination of cargo revenue, higher fares for non-residents and tourists, government fee waivers, and direct public subsidies.
Under the proposed two-tier system, residents would pay a capped $400 round-trip fare while tourists and other non-residents would pay market fares estimated in the report at $900 or more. Cargo, particularly inbound e-commerce shipments and outbound seafood, would provide another source of revenue to offset passenger fares.
Even under those assumptions, the concept anticipates government financial support. It estimates a combined annual subsidy of $6 million under what it calls an optimized operating scenario and as much as $16.8 million under a conservative scenario, equivalent to between $1.5 million and $4.2 million annually for each participating country.
The report suggests that Compact of Free Association funding, international development assistance, and tourism levies could potentially be investigated as sources of that support. Those potential funding sources are presented as proposals rather than commitments from any government or development partner.
The document also presents a less ambitious alternative that would not require the four governments to establish a new airline from the ground up. Under that model, the consortium would essentially establish a common regional airline brand and contract with an existing carrier, such as Nauru Airlines or Fiji Airways, through an Aircraft, Crew, Maintenance, and Insurance, or ACMI, arrangement.
An existing airline would supply and operate the aircraft while flights were marketed under the consortium’s regional brand. The report argues that approach could reduce certification, staffing, and operational risks associated with creating an entirely new airline.
Meresbang described Pacificnesian Equities as a Guam-based consulting firm working on equitable and sustainable development projects in Guam, Saipan, and Hawaii, including work with partners in the United States and the International Cooperative Alliance-Asia Pacific.
For now, he said, the airline document is intended principally as a starting point.
“We hope to develop more research and presentation on this matter and submit one for the next MIF and PIF to be invited to provide a formal presentation,” Meresbang said.
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