Air & Sea

In an effort to boost Taiwanese tourism in Saipan, Continental Micronesia has begun twice-weekly, return routes from Saipan to Taipei. The airline also recently amended its Guam - Hong Kong flights to include a Saipan stop. In a ceremony celebrating the new routes, Marianas Visitors Authority Chairman David Sablan expressed his gratitude to Continental Micronesia, saying "we hope you continue this route in years to come." Polynesian Airlines has begun new service between Apia, Pago Pago and Vava'u, Tonga. A 36-seat Dash 8 will operate the service on Mondays and Fridays, as an extension of Tonga's sole domestic airline, Peau Vava'u. Pacific Blue has confirmed its once-weekly flight from Sydney/Christchurch to Rarotonga will commence on November 20th. And Air Pacific has resumed flights from Nadi to Honiara for the first time in 20 years. The airline is now offering 162 seats on the once-weekly, Tuesday flight.

Palau Micronesia Air Ends Darwin Route

Startup airline Palau Micronesia Air has suspended its route to Darwin, Australia. Citing the rising costs of jet fuel and insufficient hotel accommodation in Palau, the route was pulled after just three months of service. PMA had been marketing Palau as a premier dive destination, with wholesalers offering week-long tour packages. In an interview with Pacific Daily News, then-Palau Micronesia Air CEO Alan Seid said it's been a difficult first few months with the airline, but the work was expected. The airline recently began flying to Guam and plans to begin flights to Asia. In addition, they have added online booking to their website, www.palau-air.com, and continue to prepare to add a supplemental aircraft to their route schedule.

Solomon Airlines Domestic Service Struggling

Domestic flights are at risk in the Solomon Islands. At the request of Solomon Islands Civil Aviation Minister Patteson Oti, a delegation from Papua New Guinea-based Airlines PNG recently met with government officials in the Solomons to discuss the fate of domestic airline, Solomon Airlines. In August, the government-owned airline increased ticket prices by 50 percent in an effort to maintain its services. The PNG group recommended the airline undertake drastic changes if it is to continue operations, including a large-scale cut in airline employees. In addition, international routes continue to subsidize domestic routes at a ratio that may well be detrimental to the airline. Meanwhile, many routes are being cancelled due to exceedingly low passenger loads following the fare increase.

Air Pacific Responds To Regional Competition

With a variety of low-budget airline carriers now offering flights to Fiji from Australia and New Zealand, Fiji-based Air Pacific has begun rethinking its Pacific strategy. The airline has recently expanded its routes to include Tonga and Honiara, and will begin flying to Honolulu in late November, with an intermediate stop in Christmas Island. The flights will operate on a semi-charter basis between Christmas Island and Honolulu on behalf of the Government of Kiribati, with 24 seats per flight allocated in codeshare with Air Kiribati. As competition continues to harden, Air Pacific intends to maintain a regional focus "to ensure connections and flights through the South Pacific to meet travel patterns and demand," according to CEO John Campbell.

Air Tahiti Nui Teams Up With Delta

Air Tahiti Nui recently announced a partnership agreement with Delta Airlines. Although Delta's website has indicated that the two carriers have entered into a memorandum of understanding, formal codesharing will be subject to government approval. David Bishko, Delta's General Manager, said that Delta's goal "is to formalize agreements that will expand our present network and provide Delta customers with new and expanded non-stop access to Tahiti from gateways Los Angeles and New York, as well as convenient connecting service to Auckland and Sydney." While the new agreement will certainly offer frequent flyer benefits, other areas of cooperation such as lounge sharing, cargo and facility assistance and passenger handling are still being discussed. "When implemented, this will be a win-win situation for customers and the carriers," Bishko added.

Eco Air May Join Regional Scene Jason Aubuchon The era of airline monopolies in the Pacific may, at long last, be coming to a close. The advent of low-budget carriers in the South Pacific has long-entrenched airlines scrambling to maintain a customer base. But the stronghold that Continental Micronesia has had on the North Pacific may be changing, too. Much attention has been given to Palau Micronesia Air, which now runs Pacific routes between Palau, Yap, Guam, Chuuk, Pohnpei and Manila, creating direct competition for Continental and in many cases initiating lower airfares. But while PMA has struggled to fill seats, a new airline is proposing a "combi" (passenger/freight) load balance that may prove viable. Brisbane-based Eco Air is about to take off. The airline is planning two separate Pacific routes: the first flying from Brisbane to Honiara, Majuro, Tarawa and Nadi; the second from Brisbane to Honiara, Pohnpei and Saipan. A leased Russian Yaklovlev Yak 42D has been refitted to provide 54 passenger seats, while the remainder of the space will be used to transport cargo to the islands. Eco Air's CEO, Rex Banks, toured the airline's destinations in late October. "The main emphasis really is on the freight service. But pure freight doesn't work, so you have to put some passengers in to offset the economical costs," Banks said in an interview with the Saipan Tribune. Banks projected that a load-factor of 36 passengers will sufficiently offset flight costs. Although fare structures have not yet been released, Banks indicated that pricing will be competitive, both for cargo and passenger transport-and competitive prices are exactly what's needed in the North Pacific. Eco Air is currently awaiting FAA approval to land in Saipan. Look for them to start flying before the end of the year. Jason Aubuchon can be contacted at jasona@pacificbasin.net