Air & Sea

Palau Micronesia Air Takes Off

After four years of negotiations and a series of postponements, Palau Micronesia Air has finally taken to the sky. The airline's refurbished Boeing 737 landed in Palau on July 11th, where it was welcomed by the Palauan community. An inaugural flight to Yap, Chuuk and Pohnpei landed on July 12th, where Pohnpei Governor Johnny David and FSM Congressional Speaker Peter Christian welcomed airline President Alan Seid. Governor David presented Seid with a check for $500,000, signifying Pohnpei's investment in the airline. Yap state has also invested $500,000. The airline began regular operation of its Manila-Palau-Yap-Chuuk-Pohnpei route August 5th, with a stop in Guam expected to be added after September 5th. An additional inaugural flight to Darwin also began early August. web: www.palau-air.com

New Caledonia Dock Strike

A strike called by the New Caledonia Union of Kanak and Exploited Workers (STKE) crippled the Noumea port in late July, preventing cargo offloads and cutting off fuel supplies. After five days the New Caledonia police, armed with batons and shields, attempted to enforce a court order to lift the strike, but were unsuccessful. According to STKE Secretary General Claude Wema, the strike was called when employees realized that the two primary cargo-shipping companies, Sofrana and Manutrans, were planning to consolidate their operations by replacing two ships with a single ship. Although the New Caledonia government has set up a crisis cell to mediate dispute resolution, some 500 workers continued to enforce the wharf blockade, prohibiting access to gas and diesel pumps.

Royal Tongan Airline Liquidation Continues

A five-man team led by Richard Agnew from PriceWaterhouseCoopers of Auckland, New Zealand, began the liquidation of Royal Tongan Airlines in mid-June. It has now completed the initial stage of the liquidation process, having conferred with board members and reviewed the airline's assets and liabilities. Although the team has not yet released any figures, Agnew has extended the deadline for creditors to submit claims against the airlines and has emphasized that money is still owed to overseas airports for landings and to Royal Brunei Airlines for unpaid lease agreements, as well as other companies. Royal Tongan Airlines ceased flying in mid-May of this year after 19 years of operation.

Air Niugini Thrives in 2003

As the Papua New Guinea economy continues to regain stability, Air Niugini has recorded the highest earnings in its 30 year history. Having lost US$12 million last year, the airline posted an after-tax net profit of US$15.8 million in 2003, with international travel up 156 percent. Airline Chairman Joe Tauvasa said that "the airline is firmly on course to maintain safe, reliable and profitable services in spite of external factors…that have increased the costs of operations," in an interview with The National. Air Niugini made several key strategic moves over the past few years, including the establishment of overseas offices in Europe and Asia and the direct pursuit of wholesale tourism. In addition, airline executives agreed to a 10 percent wage reduction during last year's financial crunch. web: www.airniugini.com.pg

Aloha Air Drops Rarotonga

Hawaii-based Aloha Airlines will drop its twice-weekly Honolulu to Rarotonga, Cook Islands service on December 10th. The airline has struggled with the South Pacific route, which it began flying about a year and a half ago. The airline had hoped to lure Canadians from Vancouver, which it also serves, to the Cooks via Hawaii. Aloha Airlines, which uses Boeing 737 aircraft for all of its routes, will continue serving the Pago Pago, American Samoa market with twice-weekly flights. Aloha added a stop in Pago Pago on the way to Rarotonga to boost passenger revenue. The airline still flies from Honolulu to the Marshall Islands and Christmas Island in Kiribati, along with inter-island routes in Hawaii, and flights to U.S. West Coast destinations. Web: www.alohaair.com

A Volatile Industry Jason Aubuchon The Fiji Air Association’s claim that two Air Fiji employees were wrongfully terminated climaxed in late July, when 27 of 30 Air Fiji engineers went on strike. Although the Secretary General of the Fiji Islands Council of Trade Unions claims to have given notice of the pending strike in June, the Fiji Labour Ministry quickly declared the strike illegal and called upon the relevant authorities to pursue legal action. Following the government declaration, Air Fiji issued letters of termination to the 27 striking employees. While some returned to work after being informed of the illegality of the strike, many Air Fiji employees refused to waver, and continued the strike at Nausori airport. The Papua New Guinea government narrowly avoided a civil aviation strike in Port Moresby in July. To prevent the strike, the Civil Aviation Minister agreed to union demands, including back payments and a 5 percent salary increase for this year. The proposed four-day strike would have effectively closed down aviation services nationwide. Only international airlines transiting through PNG airspace or emergency medivac planes would be have been able to fly. During the three-day Air Fiji strike, Fijilive reported only three flights departed from Nadi. Although many Pacific nations are economically dependant on tourism, the airline industry continues to be volatile. Most Pacific airlines are feeling the crunch of rising fuel prices and increased security costs, often while making financial adjustments to allow for the continuation of less popular, domestic routes. If PNG and Air Fiji are an indicator of the level of stability among Pacific airlines, island nations will need to prepare for the economic impact of limited air travel, and limited tourism. Jason Aubuchon can be contacted at jasona@pacificbasin.net.