Air + Sea

Up And Down In CNMI
Continued Airline Movements

Still reeling from Japan Air Lines pullout in early October, the Northern Marianas suffered another blow to its tourism industry when Continental Micronesia announced that it will end twice-weekly non-stop flights between Saipan and Taiwan starting Oct. 31 and suspend its stopover on Saipan directly from Hong Kong beginning Nov. 7.

Continental Micronesia Boeing 737 at Majuro Airport. (Photo: Giff Johnson)

Continental cites increasing fuel costs, declining fares and weak market demand as the reasons for the termination of its flights. However, Continental has resumed flights between Saipan and the Philippines three times a week.

Meanwhile, Northwest Airlines, which has declared bankruptcy, began its new daily flight services between Osaka and Saipan effective Oct. 1.

And Korea-based Asiana Airlines upgraded its aircraft on Sept. 15, 2005, from a Boeing 767, with 260 seats, to a Boeing 777 aircraft, with 310 seats. The airline will continue using this aircraft on the Saipan route until March 25, 2006. -- Frank S. Rosario

ADB Invests
Aviation Safety Gets Boost

The Asian Development Bank (ADB) will help boost aviation safety and security in the Pacific, through a US$1.95 million loan and technical assistance package to complete the setting up of a Pacific Aviation Safety Office (PASO).

PASO is a new, Vanuatu-based regional agency that will provide aviation safety and security oversight, inspections, and technical assistance to airlines, airports, and civil aviation authorities.

"PASO is the most effective but least costly solution to the Pacific aviation industry's needs and represents a new approach to regional finance, through a loan made directly to an intergovernmental organization," says ADB Transport Specialist Robert Guild.

ADB is providing a $1.5 million loan from its concessional Asian Development Fund. The loan has a 32-year term, including a grace period of eight years. Interest is charged at 1 percent during the grace period and 1.5 percent subsequently. The governments of Kiribati, Papua New Guinea, Samoa, and Vanuatu have each agreed to guarantee US$375,000 of the loan. -- Samantha Magick

Polynesian Blue
May Still Fly To Hawaii

Hawaiian Airlines is in "discussions" with Polynesian Blue for possible future joint air service between Apia and Honolulu, a service currently provided by Samoa government-owned Polynesian Airlines on a weekly basis.

While Polynesian Airlines holds landing rights in Honolulu, Polynesian Blue is required to obtain similar rights, because Polynesian Air's certificate is not transferable. Polynesian Blue is the merger between Samoa's state-owned Polynesian Airlines and Australia's low cost carrier Virgin Blue.

"We are in discussions with Polynesian Blue about providing 'code share' service between Apia and Honolulu, but no commitments have yet been made," Hawaiian spokesman Keoni Wagner says. "That's all I can offer for now."

Meanwhile, Pacific Blue planned to launch direct flights to Tonga from both Australia and New Zealand from 31 Oct. 2005. And Polynesian Blue is expected to begin operating in Samoa in November. -- Fili Sagapolutele

TRANSPORT BRIEFS...

Northwest Airlines, which filed for Chapter 11 bankruptcy, has assured its Northern Mariana Islands clients that operations will continue as normal. NWA is now flying a non-stop Osaka-Saipan route and daily to Saipan from Tokyo and Nagoya.

Papua New Guinea's Lutheran Shipping has stopped passenger and cargo services out of Lae to Oro Bay, Alotau, Kimbe and Rabaul because of the high fuel costs, which had rendered the routes uneconomical.

Reef Shipping has increased its freight rates. The increase of US$200 for 20-foot containers and US$400 for 40 foot containers- both dry and reefer-will now apply to all existing rates. The increase affects cargo from Korea, China, Hong Kong, and Taiwan to New Zealand ports, which is then transshipped to Pacific Island ports.

Japan-based shipping company Kambara Kisen announced it is ending service to Palau and Yap after 22 years. Kambara cited "lack of profitability" and "lack of perceived support from the Palauan business community" for the move.

Air Fiji has signed a memorandum of understanding (MOU) with Solomon Airlines for the exchange of professional services and in the long term, sharing of aircraft between the airlines.

Air Pacific's inaugural flight to Kiritimati enroute to Honolulu and the United States began Oct. 4. The Boeing 737-700 weekly flight is chartered by the Kiribati Ministry of Transport, and will open avenues for tourism promotion, trade and other commercial activities on Kiritimati, the capital of the Linnix Islands. -- Batiri Bataua