Pacific Magazine > Magazine > June 1, 2004

Air & Sea

Air & Sea


Royal Tongan Airlines Grounded

Royal Tongan Airlines has discontinued service. After beginning international routes in late November, the government is now facing a financial crisis amid reports of the repossession of its Boeing 757, which is leased from Brunei. It had been reported that fuel suppliers, travel agents and other airlines insisted on cash exchanges when doing business with the airline. The cessation of international service had stranded some 500 passengers, most of whom have been accommodated on Air New Zealand. Royal Tongan Airlines says that its domestic service remains operational. Australia has offered to assist the airline by providing expertise in company restructuring, leasing and commercial management of air routes, but has said it is unlikely they will inject any capital into the airline. A recent audit estimated the airline was operating at a 34 percent load factor, and required an infusion of US$10 million to continue service.

- ADVERTISEMENT -

Palau Airline Delays Inaugural Flight

Palau Micronesia Air won't take flight until July 2004, according to airline President Alan Seid. PMA had originally planned to begin service in April 2004 with a Boeing 737 and support from Aloha Airlines, according to early business plans. But with Aloha pulling out last year and the surprise withdrawal of operational assistance from Air New Zealand in late February, Palau Micronesia Air has been forced through a series of delays. The industry-standard overhaul of the airline's leased aircraft has been slower than expected, but current plans have ticket sales beginning in mid-May. "It hurts to postpone it, but that's the business world," Seid said in a recent interview with the Pacific Daily News on Guam.

Continued Growth For Air Tahiti Nui

Air Tahiti Nui, which currently operates under code-share agreements with Air France and Qantas, has recently partnered with Japan Airlines. According to Tahiti Presse, the new JAL agreement enables Air Tahiti Nui to sell seats to Tahiti on JAL flights out of Japan's 10 largest cities. The agreement took effect April 20th. The airline has also recently announced plans to add direct flights to New York and Sydney, beginning in June 2005. By that time Air Tahiti Nui will have added its fifth Airbus A340-300 to its fleet, and recent marketing reports project a 10 percent increase in passenger traffic as a result of the new routes. The airline was voted "Best Pacific Airline 2003" by SkyTrax Research, Inc. early this year.

More PNG Security Lapses

On the heels of major security gaps in Papua New Guinea airports, the most glaring of which was the Air Niugini passenger who arrived in Singapore with a pistol in his carry-on last month, come two additional incidents. A North Solomons woman was stabbed to death at the Kagamuga airport on March 31st while checking in for an afternoon flight to Port Moresby. When asked about security issues at the terminal, Air Niugini officials replied that their security personnel are not mandated to screen public check-in areas. As disturbing is the early-April arrest of Albert Punjimil, a 55-year-old man accused of carrying dynamite (and a detonator) in his briefcase on a flight to Lorengau, PNG, ensuring that port security issues within PNG continue to draw international attention.

Majuro Seeks Help With Runway Repairs

The U.S. Federal Aviation Administration has put the Republic of the Marshall Islands on notice that it must resurface its runway at its main international airport. If the needed repairs are not implemented soon, the FAA will direct US carriers to cease service to Majuro-a move that will effectively close the Marshall Islands to most international travel. At the request of the RMI government, a Japan government survey team has made plans to visit Majuro before August to assess funding possibilities. The estimated cost of the repairs is $20 million.

Jason Aubuchon

Air Nauru Returns to the Marshalls

Air Nauru is about to resume service to the Republic of the Marshall Islands for the first time since the early 1990s. Years of negotiations with the Marshall Islands government culminated in late April, when the RMI government approved an Air Services Agreement and Memorandum of Understanding with Air Nauru.

Current plans have Air Nauru's single Boeing 737-400 flying through Majuro by mid-June. The new route will offer service from Brisbane, Honiara, Nauru, Majuro, Tarawa and Nadi on Mondays, with return flights originating from Nadi on Fridays. Although ticket prices have not yet been set, economy and business classes will be available on the new flights. Air Marshall Islands will be used as the ground-handling agent in Majuro, and the new route may also be used to carry freight from Australia and Fiji.

Nauru is bankrupt, owing the U.S. General Electric Capital Corporation some US$230 million in loan repayments, and receivers are foreclosing on Nauru government property in Australia. Pending debt reconciliation at the time of going to press, Nauru House in Melbourne and the 517-room Mecure Hotel in Sydney's Railway Square, have been taken over by receivers. The financial crisis has prompted Australia's Foreign Minister, Alexander Downer, to send a team of experts to Nauru to discuss options for economic sustainability. One proposed resolution would enable the nation's 12,500 citizens to move to Australia.

Air Nauru's Commercial Manger, John Goulding, has stressed that the airline's business operations have been kept distinctly separate from the government's other ventures, leaving little risk of outside takeover. In a recent interview with the Australian Broadcasting Corporation, Goulding said, "We've had two good years financially. Our business is solid. We have a good reputation and our reliability factor is very good now. We have very good relationships with Qantas who provide all of our maintenance and service, and we're looking to the future with quite a lot of optimism."

Jason Aubuchon can be contacted at jasona@pacificbasin.net.

 

- ADVERTISEMENT -