Air+Sea
Air+Sea
| A Sinking
Ship Fiji Shipyard Bleeding Money The problems continue at the troubled Fiji Ships and Heavy Industries (FSHI) following revelations that the venture has failed to build a single ship since the government spent F$6.5 million (US$3.9 million) to buy the facility in 2001. FSHI Deputy Chairman Hari Pal Singh says lack of government support is partly to blame, as no government vessels have been maintained at the shipyard, suggesting this is hardly a vote of confidence in the venture. The Fiji Times reports that while the company lost F$247,883 (US$149,225) in 2002, it made F$3.01million (US$1.8 million) in 2003. The government has indicated it is looking at options to again salvage FSHI, including possible partnerships with the private sector and offering additional services. In March FSHI signed a memorandum of understanding with Interclean New Zealand to add cleaning services to its shipyard. Taxing Point The Tongan Ports Authority has increased tariffs by 25 percent. The increase went into effect on April 4. But President of the Tonga Chamber of Commerce & Industries, Dr. Sione Ngongo Kioa, says businesses are disappointed, and have asked the government to defer the changes. "We propose to defer this increase for six to 12 months and review the amount of the increase as the ports authority have already increased the ports operation charges by 20 percent," Ngongo told Matangi Tonga. Ngongo says the tariff increases will undermine a new consumption tax of 15 percent on most goods and services, which came into effect April 1. The Chamber of Commerce is concerned that the tariff increase will delay shipments and increase the cost of sea transportation. Ada
Honored The Saipan International Airport now has a new name: Francisco C. Ada Saipan International Airport. Ada was the former District Administrator of the Northern Marianas during the Trust Territory era who spearheaded the construction of the current runway and airport terminal. "Mr. Ada is one of the pioneers of travel and tourism in the Northern Marianas," says Governor Juan N. Babauta, who along with political and business leaders, attended the ceremony renaming the airport in Ada's honor. At that ceremony Ada recalled how a group of business and government leaders in 1971, put aside their political differences, sat down and thought of ways to construct a new runway and terminal to replace the World War II-era Kobler Air Field located two miles away. That area has since been turned into housing development and homesteads for local residents. The current airport opened in the summer of 1976. Today, more than half a million travelers come through the airport annually. -Frank S. Rosario Virgin
Take Over There has been more volatility at Virgin Blue, the parent company of Pacific Blue, which is now servicing three Pacific Island destinations. Patrick Corporation has secured 62 percent of Virgin Blue after offering A$1.90 (US$1.46) for each Virgin share in March. Virgin Group's Sir Richard Branson and current airline chief executive, Brett Godfrey own 25.6 percent and 2.7 percent respectively. Virgin Blue Interim Chairman, David Ryan, had written to shareholders urging them not to accept the offer, saying, "(an) independent expert has concluded that the offer is neither fair nor reasonable." The airline has also issued a profit warning, saying its after-tax profit will likely be 10-15 percent lower than last year's. The revised figures have largely been attributed to strong competition from its Australia competitor, Jetstar, and continuing high fuel costs. The impact on Virgin Blue's services to Fiji, Vanuatu and Cook Islands-under the name Pacific Blue-remains to be seen, but Patrick Corporation has indicated it will review the entire business now that it has control.
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