Air + Sea
Air + Sea
PM&O In Dire Straits
Company Up For Sale
PM&O shipping line is now months behind schedule, as its two leased container vessels have been held for many weeks on end in financial disputes in various locations ranging from Honolulu to Majuro to Asian ports. The U.S.-based company that recently marked its 25th anniversary of service linking the central Pacific with the U.S. and Asia has not had a ship in service since about August and it's unclear if there is a future for the company.
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San Francisco-based PM&O President Robert Colson has reportedly put the company up for sale. With PM&O out of the picture, Matson Navigation is now the only U.S. shipping company providing service to Marshall Islands ports from the U.S. Kosrae in the Federated States of Micronesia has been hardest hit by PM&O's demise, as PM&O was the only shipping company regularly servicing this island of 10,000.
Pacific International Inc. owner Jerry Kramer indicated that he is involved with a group that is prepared to come in to provide shipping service to the Marshall Islands, but is waiting to see what happens with the PM&O situation. "They will not compete with PM&O," says Kramer. Matson officials said they are also looking at shipping opportunities in the FSM and Marshall Islands. -- Giff Johnson
Air Marshall Islands Struggles
Scrambles To Retain Kwajalein Business
Money woes have hit Air Marshall Islands, and the U.S. Army at Kwajalein has put the airline on a cash up-front basis for fueling and ground services. To help the national airline, Chief Secretary Robert Muller has directed government workers to prepay for travel on AMI.
Access to Kwajalein is critical not only because it's a jumping off point for air service to the northern and western atolls but because fuel prices are 55 percent lower than when AMI buys from Mobil in Majuro.
"Kwajalein is a vital part of our operation," says Air Marshall Islands general manager Dan Fitzpatrick. "We'd be out of business if we were shut off from Kwajalein." -- Giff Johnson
SPEX Takes To The Air
Another Link Between Samoas
American Samoa-based South Pacific Express Inc. (SPEX)launched flights between Pago Pago and Samoa's Faleolo International Airport Dec. 2, following approval by the U.S. Federal Aviation Administration and the granting of landing rights by the Samoa government.
SPEX flights are initially operated by its partner, Guam-based Aviation Services Ltd., utilizing a U.S.-registered Shorts 360 turbo prop twin-engine aircraft re-named "Tutuila." The aircraft, which can seat up to 36 passengers has been reconfigured for 30 passengers to allow more legroom.
There are two flights a day except for Saturdays and more will be added based on demand, says board chairman Avamua Dave Haleck. SPEX, which is owned by the Otto Haleck, Sr. family, is designated by the U.S. government as the U.S. flag carrier for American Samoa for inter-Samoa routes. -- Fili Sagapolutele
Transport Briefs
China Airlines added two flights per week between Guam and Taipei from Nov. 17-Jan. 19. This followed the Oct. 31 suspension of Continental Micronesia's flights on the route. During fiscal year 2004, about 2 percent of Guam's total visitor arrivals came from Taiwan. -- Frank Whitman
The Taiwanese government is pressing ahead with plans to encourage its shipping companies to hire Pacific Island seamen. Describing Pacific Islanders as "the best navigators in the world," a foreign ministry spokesperson said representatives from Yang Ming Marine, one of Taiwan's largest shipping companies, had already traveled to Tuvalu to discuss the possibility of hiring workers from there. He added that any agreement would have to be negotiated by the shipping companies, and the government could merely encourage them to explore the opportunities. -- Graham Norris
New Caledonia's main port was blocked late November as striking workers crippled operations there in protest against the sacking of two workers from the SLN nickel mining company. Police cleared the port after four days and riot police were deployed to protect the operations. Air Vanuatu sacked more than 16 workers, the Vanuatu Daily Post reported early December. These terminations follow consistent conflict between the workers' union and Air Vanuatu but at the time of going to press, no specific reason had been given for the sackings.
Air Tahiti Nui and Virgin Atlantic Airways have launched a joint promotion, offering travelers from Australia to London a round-the-world itinerary with a Tahiti stopover. The special fares are available for sale and travel until June 30.
Air Fiji is adamant that its regional expansion will continue with or without the support of the Fiji Government. Pacnews reports Air Fiji Chairman Dave Robertson as saying the airline's main priority at the moment is to resume its services to Tonga, but that the Fiji government continues to block this effort.
