Air + Sea

At least two shipping ventures are positioning to move into the void left by last year's demise of PM&O Line's container service linking the Micronesian area with Asia and American ports. Bill Keldermans and Jesse Gajdusek of Palau Shipping Company island-hopped through the Federated States of Micronesia and the Marshall Islands recently to float a proposal for a new shipping service from Guam into the FSM and the Marshalls.

Keldermans said the recent pullout of the Western Micronesian area by the Japanese Kambara line after 23 years, and PM&O's demise after more than 25 years, both show the difficulty of depending on shipping firms outside the region. Kelderman's proposal is to use Matson's U.S.-Guam service as a feeder to the FSM and Majuro and Kwajalein, as Palau Shipping Company is now doing for Yap and Palau.

In the meantime, Majuro businessman Jerry Kramer is pushing the possibility of a new shipping service to the Marshall Islands from the U.S. to complement Matson's regular monthly service. "Matson is a lifeline to the Marshall Islands," says Kramer. "We used to get rapid delivery of cargo from the U.S. west coast with Matson and PM&O. It's a service level that we don't want to see decline."

Kramer and other business leaders say that the Marshall Islands definitely doesn't want to lose the Matson service out of Honolulu-the main argument against the Palau Shipping Company proposal, which would see cargo delivered directly from the U.S. west coast to Guam to be transshipped back to Majuro and Ebeye.

Kramer said the new service that he is proposing is to return to an every-two-week rotation on container deliveries, the minimum needed to maintain a supply of fresh produce in Marshall Islands stores. -- Giff Johnson

Changes Expected For Pohnpei Airport

The Pohnpei International Airport has been the focus of a Japan-funded study in recent months to determine the need for capacity-building improvements. A major project under consideration is an extension of the airport's runway to accommodate larger aircraft and bigger payload. The November 2005 Interim Report issued by Nippon Koei Co., Ltd. and Japan Airport Consultants, Inc. recommends lengthening the runway by 800 feet. Such an extension would permit a Boeing 767 aircraft to land as well as allow a Boeing 737 to arrive with a heavier payload. The runway currently extends 6,000 feet. A runway extension has been endorsed and applauded by state and national leaders as a way to promote travel to the island. The ability of a 767 to use the airport could attract new airlines and possibly make travel to Pohnpei cheaper. Larger aircraft might also facilitate the transport of fresh fish. The airport is currently used by Continental Micronesia and Asia Pacific Airlines, a regional freight carrier.

"For us, we're foregoing opportunity by not having an extended runway," said Ieske Iehsi, general manager of the Pohnpei Port Authority. "It is something that has been desired for a long time by Pohnpei." Ieske also chairs the study project's steering committee. A grant request for approximately $19 million to execute study recommendations has already been submitted to the government of Japan via the Japan Grant Aid program. The study is being funded by the Government of Japan and administered through the Japan International Cooperation Agency (JICA). A final report was expected in April. -- Jessica Chapman

FSM Airports Get Upgrade

An infusion of Federal Aviation Administration (FAA) funds has been assisting FSM airports to pursue some necessary additions and safety improvements. Nearly $13 million has been allocated since 2004 for various projects in the four states.

"Our main objective right now is to update to meet FAA and international standards," says Master Halbert, safety inspector for the FSM Department of Transportation, Communication and Infrastructure. Establishment of aircraft rescue and firefighting facilities for all four airports is in the design phase, with construction scheduled to commence this year. Each airport is also slated to receive two new fire trucks, which are currently being procured with the assistance of the Commonwealth Ports Authority in Saipan. $3 million will contribute to restoration of the Yap airport, which was damaged by Typhoon Sudal in 2004. In Pohnpei, over $3 million will serve to rehabilitate the airport's runway and apron. Halbert cites a total projected goal of up to $46 million needed in order to meet the country's airport security and safety needs. However, the country must compete with other airports for the discretionary funds. "Right now we're trying to extend our eligibility," he says. The country currently has access to the funds only until 2007. The FSM became eligible for the Airport Improvement Program upon the passage of a U.S. law in 2003. --Jessica Chapman

Transport Briefs

Horizon Lines will charter five new U.S. flag, foreign built vessels for 12-year terms from Ship Finance International Limited. The new vessels will be deployed in Horizon Lines' weekly service linking the U.S. West Coast with Guam and Asia.

A dispute between Continental Micronesia and Marshall Islands Telecom officials that may result in higher airfares was still unresolved at the time of going to press. Continental Micronesia has threatened to raise its airfares for Majuro if the height of a cell phone tower near the Amata Kabua International Airport is not lowered by 11 feet. The airline says the height and location of the tower would prevent the airline from carrying full loads from Majuro.

Nauru's government was hopeful Air Nauru would be back in service in April, after it reported a replacement Boeing 737 aircraft had been secured, thanks to Taiwanese financial support. The airline has been operating charter services in cooperation with other regional carriers since its sole aircraft was repossessed last December.

Continental Micronesia has introduced a third weekly flight from Cairns to Guam. The extended service began April 4.

Air Tahiti Nui has again featured prominently in the global SKYTRAX Awards for Airline Excellence, winning the 2006 accolade for Onboard Service Excellence for a Smaller Airline.

Air Tahiti Nui won SKYTRAX's 2006 award for Onboard Service Excellence for a Smaller Airline.

Northwest Airlines planned to introduce a second nonstop flight between Tokyo's Narita Airport and Saipan from April 24. The move follows intense lobbying efforts by Northern Marianas Governor Benigno Fitial. He is trying to increase flights between Saipan and Japan to fill the gap following the pullout late last year by Japan Air Lines.

In a related development, Japan Air Lines is investigating the possibility of flying to Tinian in the Commonwealth of the Northern Mariana Islands. A JAL team has inspected airport facilities on the island, but no timeframe has been discussed.

High fuel prices have reportedly stopped Air Saipan Ltd.'s plan to begin charter services for now. Spokesperson Craig Champion says they lost a major investor in the new venture because of rising fuel prices.

Air Marshall Islands lost almost US$5 million over three years, according to the latest Auditor General's report to the Nitijela, the Marshall Islands' Parliament. The carrier lost nearly US$2 million in both 2002 and 2003, but reduced its losses to about US$1 million in 2004, producing a three-year operating loss of over US$4.7 million.

Direct shipping between Ha'apai, Tonga and Auckland, New Zealand is now underway. Reef Shipping Ltd. is sailing the MV Southern Tiare sailing from Auckland to Niue, then to Ha'apai before taking the five days journey back to Auckland.

The Missionary Aviation Fellowship (MAF) of Papua New Guinea has cut back some services because of a pilot shortage. But general manager Mike Jelliffe says they hope to employ more pilots by the end of the year.

Northwest Airlines and United Airlines are opposing the Guam government's petition to give foreign airlines broad exemptions from federal restrictions on picking up passengers between Guam and other U.S. ports.