Air+Sea

"It feels like every time we make progress, we end up facing another obstacle," says Bill Weza, general manager of the Marshall Islands Resort. "This is a detriment to tourism, RMI citizens and the business community… Not just that, Aloha has been an alternative to bringing in other supplies like fresh produce."

Jerry Kramer, chief executive of Pacific International Inc., concurs: "I feel this may be the wrong time for them to cancel their flights. With the new Compact in place, we can expect more disposable income in the general public which will begin flowing at the start of next year. It is a shame since Aloha stuck it out so long and now they may miss out on the opportunity of more money in the economy." -With reporting from Suzanne Chutaro

Tongan Debts Deepen
Cutbacks, Growth At Continental
Creditors of the now-defunct Royal Tongan Airlines are claiming more than TOP$16.6 million (US$8.518 million) from liquidators of the airline, according to Matangi Tonga magazine. But it also reports only a fraction of this, about US$1.2 million, has been recovered from the sale of assets and other funds.

The liquidators, PriceWaterhouseCoopers of New Zealand, say just over half of the 206 RTA employees have filed claims, and are urging the remainder to file as soon as possible.

Secured creditors are owed about US$1.2 million, preferential creditors-including staff US$104.6 thousand and unsecured creditors about US$7.1 million.

New Airline For The Samoas
First Quarter Start-Up
A prominent American Samoa family plans to operate flights between the Samoas under the banner of South Pacific Express Inc. (SPEX) early this year. SPEX is seeking federal regulatory approval.

Company Chairman Avamua Dave Haleck says SPEX will operate a Shorts 360 turboprop twin engine that will hold 36 passengers. The flights will initially be operated by Guam-based Aviation Services Limited, but Haleck hopes local management and workers will eventually take over, and that a second plane will be added.

-Reporting by Fili Sagapolutele

Off The Air
Palau Micronesian Air Stops Flying
Palau Micronesian Air stopped flying in December. Airline management says service is being suspended so the company can "undergo a thorough company-wide restructuring… (that has) become necessary because it is taking longer than expected to meet sales projections, and because fuel costs have become significantly higher than anticipated." While the company says it hopes to resolve the problems to allow it to resume service on a firmer footing, many doubt its ability to resume flights. (Pacific Magazine published Palau Micronesia Air's in-flight magazine, Island Voyager.)

Not On Sundays
Niue Port Operations Criticized
A New Zealand company has criticized government stevedores on Niue for refusing to unload cargo vessels at Alofi on Sundays and public holidays. Reef Shipping chief executive officer, Wayne Harris-Dawe says he understands the Niue government is talking through the possibility of getting special dispensations from religious leaders for local stevedores to work on Sundays. He says Reef Shipping lost one round trip last year when bad weather hit after the weekend closedown. Niue stevedores have also been in discussion with government over pay rates. Harris-Dawe says "it goes around a lot of things in the Pacific-fragile economies need every dollar they can get and if there is a ship in town, tourist or goods, they should be catered for."

Transport Briefs
Oil Prices, ECO Air And Virgin

International airlines are heading for a near $5 billion loss for 2004, according to the International Air Transport Association (IATA). The Association says a rise in oil prices is largely to blame, but that this year could see a modest turnaround if fuel prices level out at around US$34 to $36 a barrel.

While other carriers in the region are halting flights, Australia-based ECO Airlines is set to fly from Brisbane to the Central Pacific in February. ECO CEO Rex Banks announced the company has two routes planned: Brisbane to Pohnpei, capital of the Federal States of Micronesia, with a stopover in Honiara; and Brisbane to Tarawa, Kiribati and Majuro, Marshall Islands. The latter is awaiting approval by the governments. Later, ECO aims to expand the Pohnpei service to include Saipan in the CNMI. It will use a YAK 42D tri-jet aircraft configured for 60 passenger seats and 10 tons of cargo. ECO aims to deliver fresh Australian food products to Pohnpei, Tarawa and Majuro and return with fresh seafood for the Australian market.

Samoa's government wants a joint venture partnership between Polynesian Airlines and Virgin Blue. If negotiations with Virgin Blue are successful, the new airline will start operating in the first half of this year, with Polynesian managing ground handling and regional turbo-prop services. Still, it appears that a final agreement may be weeks, if not months away. Others interested in partnering with Polynesian Airlines were Qantas and Air New Zealand. (Note: Pacific Magazine publishes Polynesian Airlines' in-flight magazine, Polynesia.)