Cover Story
POWER 10
Who Has The Real Power?
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This year's Pacific Magazine's POWER 10 ranking of the region's most powerful people has a clear trend: business executives who are focusing on Asia as well as the more traditional Australia, New Zealand and U.S. markets. This reflects the reality that the Pacific Islands must compete in the global economy. And our political leaders who made this year's Power 10 are also key players in strengthening the region's role on the international stage. - ADVERTISEMENT -
The nature of their power and influence vary widely. There will be little surprise that Australian Prime Minister John Howard and New Zealand Prime Minister Helen Clark, continue to top the rankings. Australia and New Zealand remain the dominant diplomatic and financial powers in our region. But what about Taiwan? While Japan's foreign aid to the region adds up to a bigger figure than what Taiwan gives, Taipei has aggressively pursued every opportunity to expand its diplomatic reach in the Pacific Islands, which turns out to be a very receptive region to the entreaties. While we might have made the case for Taiwan President Chen Shui-bian last year, he is an even more obvious choice for this year's list following his 2005 mini-tour of the Pacific and the increased intensity of rivalry between Taiwan and China in our region. Some Pacific Island leaders are trying to use the Taiwan-China rivalry to their short-term and obvious benefit. The strategy clearly isn't lost on Taipei, but Chen also knows that every diplomatic victory, no matter the cost, is still a victory. China's Premier Wen Jiabao met a group of Pacific Island finance ministers in Fiji in April, and there is a chance that if he follows through on the discussions, particularly in the area of trade agreements on a bilateral or multilateral basis, he could feature on next year's POWER 10 list. Oil Search's Peter Botten's place on the list comes as a result of the dominating role oil prices are playing in international economics, a sky-high price that is driving developments in Papua New Guinea that will be of regional and likely international importance. Last year, we bemoaned the absence of Micronesians on the list. While North Pacific political leaders remain conspicuously absent, this year we have Saipan-based executive Willie Tan high in the pecking order. A simple analysis of the figures at Tan Holdings Corporation of a $300 million turnover in the most recent financial year, plus its related (and significant) Asian operations that produce substantially more volume than Pacific-based operations, clearly explains his place at the POWER 10 table. John Campbell's inclusion demonstrates the continued importance of the tourism industry-and stable air services-to the development of most Pacific Islands nations. In that regard, Campbell's success at Air Pacific despite extreme challenges is a record most industry executives would love to call their own. Maire Bopp Dupont was one of our "25 Leaders To Watch" last year. Her continued work throughout the region on AIDS/HIV awareness and treatment, and her personal journey of the last 12 months make her a leader of significance. Prime Minister Sir Michael Somare re-appears on the list this year. Somare is an interesting case. He is perhaps the last of the old timers and one of the original proponents of the "Pacific Way." As chairman of the Pacific Islands Forum, last year Somare said, "globalization is bringing about new and more complex sets of development, health and security challenges. Member states of the PIF will need to develop new strategies, new responses and new partnerships." We might add new styles and approaches to leadership. Gone from our inaugural POWER 10 listing of last May are Samoans Tuilaepa Sailele Malielegaoi, Kolone Va'ai and Alan Grey, Papua New Guinea's Sir John Kaputin and Fiji businesswoman Gaetane Austin. The changes come about for a number of reasons. Tuilaepa has been necessarily focused on the Samoa election, which his Human Rights Protection Party (HRPP) won (no surprises there) by an extremely comfortable margin. Kolone Vaai and Alan Grey are in a period of consolidation of their Samoa-based business interests. Sir John Kaputin is guiding the African Caribbean Pacific (ACP) Secretariat through a crucial phase but is still to demonstrate his real influence. And while Fiji business executive Gaetane Austin continues to grow her product lines and market reach, other business entities have shown exponential growth in the last 12 months. This year's "25 Leaders to Watch" profiles introduce you to a few new names and some who've been covered in one way or another by Pacific Magazine in the last 12 months. They include politicians and business executives, but also environmentalists, writers and athletes. As with last year, we believe this list is a good reminder of people starting to exert regional influence and we fully expect some of them to figure on our "POWER 10" in years to come. 1) John Howard
Celebrating the recent anniversary of his 10th year as Australia's prime minister, John Howard warned of the threat to Australia from state weakness. "The problem of weak and failing states lies at the core of our global engagement," he said.
Howard clearly includes several Pacific Island states in that number, and his strategies for dealing with this perceived threat put him back at the top of our list of the region's Power 10 in 2006. Howard has told Australian media that he hasn't sought to build a presidential style of leadership during his time at the helm. However, there is no doubt that in the Pacific Islands-particularly in the south-he is tremendously and individually influential. Australia spends US$720 million in this region in development assistance, and a great deal of energy in ensuring it is delivered into an environment that is in Australia's national interest. In the past year, Howard has experienced both success and failure in the Pacific. The Enhanced Cooperation Package Mark I with Papua New Guinea never really got off the ground. A more modest version is now in place, and the initial response in both countries has been positive. PNG was also the scene of a strategic battle at last year's Pacific Islands Forum, when Howard was challenged to open up Australian markets to short-term Pacific Island workers. Fancy footwork saw him instead tout a Pacific Vocational College, which diffused the challenge somewhat, although a number of Pacific leaders are determined not to let this issue go. Labor mobilization will also be given some oxygen in the discussions following release of an Australian aid white paper late April. Australia aims to increase its overseas allocations to about A$4 billion a year by 2010, a doubling of its 2004 levels. The aid program will continue to focus on the Asia Pacific region. Meanwhile, Howard's people in foreign affairs are working on the Pacific 2020 report, which will "highlight the challenges facing the Pacific, Papua New Guinea and East Timor over the next 15 years" with an emphasis on economic growth and policy options in nine sectors. The report should be released in May and will give the region an even clearer indication of where the Australian government's thinking is. And AusAID has also just released a "transitional country strategy" for Solomon Islands. That strategy has very specific goals in the areas of law and order, the judiciary, financial stability, small scale income projects, improved infrastructure and greater government accountability, and leaves no doubt that Australia, through the Regional Assistance Mission to Solomon Islands (RAMSI), is still playing a hugely influential role in that country. Howard still faces some real challenges. The West Papuan independence movement is being quietly championed by some members of the Melanesian Spearhead Group. While Howard says "we do not for a moment support the West Papuan independence claim" it is expected this issue will begun to be discussed at regional fora with more frequency over the next few years. And in Nauru, the Australian government is still paying approximately US$751,000 a month to run an immigration processing center, which is currently home to just two Iraqi men. You get the sense that Howard will stand down from leadership in his own time, and on his own terms-not those of his party machinery or colleagues in waiting. And that he sees unfinished business in some of Australia's dealings with the Pacific region, which along with his other ambitions, may see him stick around. 2) Helen
Clark New Zealand and Helen Clark's importance to the Pacific Islands was emphasized again this year by the smallest and largest players in the region.
When U.S. Assistant Secretary of State Christopher Hill visited Clark in March he said the U.S. wanted more cooperation with New Zealand on regional security issues. Hill is keen to get together with New Zealand before the Pacific Islands Forum meeting later this year to decide on a "game plan." As for the smallest, when Tokelauans rejected independence in free association with New Zealand in a referendum earlier this year, Clark said she respected their wishes, adding "Tokelau is already in practice exercising virtually all the responsibilities of a self governing country. The delegation of all New Zealand's administrative powers to Tokelau will remain in place." When New Zealand Tongans pressured her government to respond to the Kingdom's civil servant strike last year, she offered a mediator, and later said she was interested in how Tonga might move down the "path to a democratic government." The narrowness of Clark's re-election to the leadership last year saw her party form a coalition government with New Zealand First and the United Future parties. As a result, Winston Peters was named as Foreign Affairs minister. He has since been dispatched to Fiji, Samoa, Niue and Tonga. Domestically, Peters has defended himself against suggestions that since he took over, Clark has become more heavily involved in the foreign affairs part of her responsibilities. But the fact is that in recent years, Helen Clark has been the face of New Zealand at the Pacific table. Before the New Zealand-funded new Niue hospital opened recently there was an early suggestion that it be named after Clark herself. That hasn't eventuated but it does demonstrate her personal power in many parts of the region. And while she struggles with domestic challenges including a contracting economy, her regional influence is unlikely to wane. 3) Chen
Shui-bian Only six Pacific Island nations recognize the Republic of China/Taiwan as a separate entity-Kiribati, Tuvalu, Palau, Nauru, Marshall Islands and Solomon Islands. However, Taiwan's ambitions to add more to this number, and its ongoing battle with the People's Republic of China-which regards Taiwan as a renegade province-is felt throughout the Pacific Islands region. It's also a battle that the United States, Australia and other regional metropolitan nations are keeping a very close eye on.
While the ambassadors of both Taiwan and China are enthusiastic and visible presences in island nations, the tour of Taiwan President Chen Shui-bian about a year ago gave Taipei representation at the highest level in the region that China has not matched. The son of farmers and a qualified maritime lawyer, President Chen made quite an impression. Nauru switched allegiance from China to Taiwan after President Ludwig Scotty met Chen in Marshall Islands during the 2005 trip. Taiwan's Pacific allies speak up on its behalf at international fora such as the United Nations and World Health Organization, but they didn't manage to secure Taiwan membership of the South Pacific Tourism Organization late last year. Yet the funding decisions Taipai has made have been strategically important. Taiwanese money will enable the repatriation of Tuvaluan and I-Kiribati workers from Nauru to their home countries. It is paying for the purchase of an airliner to replace that repossessed by the U.S. Export-Import Bank, so Air Nauru can resume scheduled air services. This funding has not been without controversy. Last September Taiwan News Online quoted President Chen as saying Taiwan had "given up the dollar diplomacy" used by the previous government. Larger controversy has also loomed over allegations that Taiwan has interfered in the internal political affairs of Solomon Islands in the build up to last month's elections, with two MPs alleging Taiwanese funds were going to "preferred" candidates. In response, Taiwan says it doesn't involve itself in the politics of countries, but it does give both financial and technical support to countries that run income generating projects. This support is a key strategy, particularly when it relates to access to valuable Pacific fisheries. For example, while a proposed $20 million Taiwanese dry dock for Majuro appears to have stalled- although some in Marshall Islands hope it will still eventuate-other countries have apparently expressed an interest including Fiji, which has diplomatic relations with Beijing. While President Chen Shui-bian sits high at number three, the absence of an identifiable and high level Chinese leader in the Pacific excludes a mainland counterpart from this list. However, the visit of Chinese Premier Wen Jiabao to Fiji in April for a summit of Pacific Island economic ministers, particularly if it results in concrete initiatives on trade, may change that in 2007. 4) Willie Tan
When people talk about the Asia-Pacific region, the focus is usually either Asia or the Pacific Islands. When Willie Tan talks about the Asia-Pacific region, he is talking about Asia and the Pacific. Tan is the Chief Executive Officer of Tan Holdings Corp., a privately-held holding company based on Saipan that owns 14 different operating units that are active in the Micronesia region, and beyond. Tan Holdings Corp., in its most recent fiscal year, had turnover of continuing operations of more than $300 million.
But that's only part of the story. Tan Holdings Corp. is tied to Luen Thai Holdings Ltd., a Hong Kong-based and -traded holding company focusing on the apparel manufacturing and supply chain business with 12 manufacturing facilities and 14 offices in nine countries in the Asia-Pacific region. Luen Thai Holdings Ltd. (311:HK), as of early April, had a market capitalization of US$332 million. In its most recent financial report (September 2005), for the six months to June 30, 2005, Luen Thai reported interim net profit results of US$15.8 million. That was on turnover of continuing operations of nearly US$267 million, with a gross profit of $54.7 million. Luen Thai, which went public in 2004, is run by Willie Tan's father, Dr. Tan Siu Lin, who serves as chairman and founder, and Tan's older brother, Henry, who is CEO and president. Willie Tan serves as Luen Thai's chief operating officer and executive vice president. A younger brother, Raymond, is also an executive vice president. Another brother, Jerry, is president of Tan Holdings on Saipan. In Micronesia, Tan Holdings is making a huge play into tourism with the acquisition over the past few years of three hotels on Saipan, and one on Guam. Two of the hotels now operate under Tan's Fiesta Resort brand. The move into tourism comes as the company's core business, garment manufacturing, lessens in importance on Saipan. Indeed, Saipan-based garment manufacturing and logistics operations now report to Luen Thai Holdings in Hong Kong. Among Tan Holdings' other activities: a regional freight airline; a marine shipping company; a travel agency; insurance company, regional distribution firm; an active regional fishing company; airport ground handling services; real estate investment and management companies, a daily newspaper, and a 10-screen movie theater complex on Guam. Willie Tan's base is so broad, and his reach into the central Pacific via his fishing company and air freight carrier is so deep, that he has the ability to easily expand further if opportunities present themselves. Add that to Tan's significant commercial base in Asia (primarily China, Hong Kong and the Philippines), and his economic and related political power is among the most significant of any Pacific Islands-based executive doing business in the region today. 5) Sir
Michael Somare The Chief. Papua New Guinea's first prime minister. Sir Michael Somare really is the last of the old guard in Pacific Island politics. And when Somare leads his National Alliance party to next year's elections he will most likely be the first Papua New Guinean prime minister to have served his full five year term.
Somare has hinted that while he will contest the next election, he may step down after his 40th year in politics in 2008, telling the PNG Post Courier, "I don't want to be 73, 74 and 75 and carry the stick and walk into Parliament. No, no, no!" As chairman of the Pacific Islands Forum this year, Somare is particularly interested in the fraught issues of labor mobility and various trade negotiations. He is due to deliver a keynote address on political stability and security in the region at the France-Oceania meeting in June as part of this role. And when Forum leaders meet in Tonga in a few months time, it will be Somare and Forum Secretary General Greg Urwin who will have to present the report card on what has and has not been achieved under the first year of the "Pacific Plan" on their watch. Somare faces challenges beyond just being reelected-many of them which have much broader regional repercussions. There are concerns still that the open border between West Papua and Papua New Guinea will lead to even more guns and refugees, and now the avian flu entering PNG, and then the rest of the region. Somare says West Papua "is an integral part of Indonesia" but calls for independence there are falling on more sympathetic ears in other Pacific Islands. The entry of former soldiers from Fiji and other foreigners into still fragile Bougainville is causing a number of Pacific nations a few headaches. This issue has dominated the Melanesian Spearhead Group agenda in recent months and may lead to the ending of visa-waiver provisions between MSG members at the very least. There is also the challenge of meaningfully engaging the Bougainville Autonomous Government in this issue. Somare already has an eye on his legacy. Recently he encouraged PNG's other former prime ministers to join him in literally writing their history-by documenting the positive policies that have worked for the country over the first 30 years of its independence. No doubt he is thinking about that legacy in a regional context as well. "We are going backwards," he told the Post Courier. He must wonder what too has been achieved since he and his independence-era contemporaries first sat at the heads of their Pacific Island governments, and what he can do with his last few years of power to improve on that record. 6) Maire Bopp
Dupont Maire Bopp Dupont's name is synonymous with the battle against the spread of HIV/AIDS in the Pacific. Dupont, who dramatically revealed her HIV-positive status in 1998, set up the Pacific Islands AIDS Foundation (PIAF) in January 2003 to help improve the quality of life of people living with HIV/AIDS and their families. PIAF also works to fight discrimination and stigmatization that exists still in the Pacific Islands-the only regional organization focused solely on that task. While official statistics put the number of HIV cases in the Pacific at 8,260 (Dec. 2003), health professionals believe the real figure is much higher.
Dupont says that when they set PIAF up, "we aimed very high" and hit the ground running with the help of donors. "PIAF is now a partner in any regional initiative that has to do with HIV/AIDS." Dupont and her fellow board members believe this year is a "time for new visions." They are working to create a Pacific Islands Positive Persons Forum in 2006, among other initiatives. Dupont considers the increase in positive people who are confident enough to go public about their status as one of PIAF's great successes. Another is the initiative that brought antiretroviral drugs to 20 positive people in Fiji last year. PIAF mooted the idea and helped finance it. The foundation's AIDS Ambassadors Program has built up the skills, knowledge and confidence of about 20 positive people across the Pacific "who without us would probably be still isolated." Out of that 20, nine have come out publicly and at least five of them have "reached out" to more than 30,000 people in three years from different walks of life in Vanuatu, Fiji, Tonga, Marshall Islands, French Polynesia, Cook Islands and Kiribati. Dupont remains outspoken. In February she denounced Fiji's government for proposing changes to the Public Health Act that would criminalize the spread of HIV/AIDS. "Such a law would destroy the work we have done so far. It will just stop people living with HIV/AIDS coming forward. Our society is not matured enough," she says. Dupont also raised controversy late last year when she had a baby girl - Tapairu Orama - but she deflects this saying she and her husband sought medical advice and support. In fact, she turned the whole experience into another opportunity to break down some of the myths about people living with HIV. Says Dupont: "The reality is that every day hundreds of women are at risk of infections and you see it through the rate of pregnancy in each country. Therefore the issue of motherhood is not just for HIV-positivewomen, it's for any other woman." Despite her successes, Dupont is quick to add that much remains to be done especially in dealing with community attitudes toward positive people. Dupont sighs. "At times you think (people's attitudes) have changed and then suddenly you get one sad story of someone and you realize 'Oh my gosh! Are we still at that stage?'" 7) Greg Urwin
Since Greg Urwin was appointed to the position of Forum Secretary General he has admitted he had passed through the honeymoon phase. Now, with the acceptance by regional leaders of the Pacific Plan last October, he is raising an important child.
Urwin himself prefers the term "project" or "process" to plan. As the Forum is to manage implementation of the Pacific Plan, Urwin's job description in effect, is to encourage members to address challenges facing the region that aren't defined or limited by national barriers. He stresses that this isn't mutually exclusive with national priorities. The Plan is structured to deliver some "early wins" and Urwin is aware that the expectation is on him and his team at the Forum to present a positive report card when leaders meet in Tonga later this year. The Forum says progress has already been made in a scoping study for the Australian Technical College for the Pacific; workshops on a World Bank Study on labor mobility in the region; moves to establish a small islands states unit in the Forum Secretariat, and ongoing development of a regional digital strategy. Over the next 12 months he will have to balance the desire of some Forum members to push for labor mobility, particularly access to the Australia and New Zealand labor markets, and reluctance from those countries. Urwin will also be focusing on managing the engagement of French Polynesia and New Caledonia within the Forum, "paving the way for stronger relationships between the French and English speaking Pacific territories." And he'll keep a close and careful watch over the Pacific's preparations for Economic Partnership Agreement (EPA) negotiations with the European Union. Urwin says at its heart, the Pacific Plan is about "redefining our notions of what it means to be a citizen of the Pacific." Which makes him, as its guardian, a powerful citizen of the region in his own right. 8) Peter Botten
Oil Search Limited (OSL) Managing Director Peter Botten has presided over great growth and important acquisitions since taking the helm of the company in 1994.
Four years after his appointment as CEO, Oil Search bought the Papua New Guinea oil and gas interests of British Petroleum, increasing its stake in the lucrative Kutubu, Moran and Hides fields in PNG's Southern Highlands Province. Then in 2002, shareholders of PNG-government owned Orogen Mineral Limited voted in support of a merger with OSL, giving the national government a 17.6 percent stake in a new oil and gas company with an initial market capitalization of $A1.4 billion. That has already grown to over $US3 billion. The move gave the company control of over 50 percent of PNG's developed oil reserves as well as equities in the Misima, Porgera and Ramu gold projects (the latter two were later sold). In July 2003, Oil Search bought Chevron-Texaco's PNG assets for $US104 million. The company now owns about 70 percent of PNG's oil reserves and over 50 percent of gas reserves that form the foundation of the $US3.5 billion PNG Gas Project. As at January 2005, Oil Search had proven and probable audited reserves of 132 million barrels of oil equivalent and undeveloped gas resources, including associated liquids of over one billion barrels of oil equivalent. The company is a strong performer (OSH:AU) on the Australian Stock Exchange. Botten's management of a company with these interests would be important enough, but it is Oil Search's international prospects and plans that put him on this list. OSL holds a 54.1 percent interest in the PNG Gas Project, an ambitious project that involves transporting gas from its fields in the Southern Highlands through a pipeline over 3,000 kilometers to customers in Australia. The project has struggled for support, but progressed further when OSL finalized the sale of 10 percent of its stake in the PNG Gas Project to Australian energy company AGL for $US427 million in February. Five Australian-based energy companies have already signed conditional gas sales agreements totaling 154 - 229 PJ pa (petajoules per annum). In a bid to develop an international portfolio and complement its PNG interests, OSL has also acquired concession areas in Yemen (five as operator), Egypt and Libya. Botten announced a record net profit of $US200.2 million for the 2005 financial year in February. "Over the past few years, and particularly in 2005, Oil Search has built up a sizeable asset portfolio in the Middle East, and now has offices in Dubai, Sana'a and Cairo. During 2006, we intend to continue to expand our foothold in the region (Middle East/North Africa), if opportunities that meet our commercial thresholds become available," says Botten. Industry analysts say Yemen could be the next big source of growth in oil revenue for OSL as PNG oilfields decline. As the man at the helm, Botten is showing other regional businesses how to explore opportunities beyond the usual markets and neighbors. 9) Hari Punja
Fiji investor and businessman Hari Punja retains a place in the list of the region's 10 most powerful people through the performance of his many companies, the expansion of his regional interests, and his continuing influence on government to government relations.
Fiji Prime Minister Laisenia Qarase describes Punja as "safe hands" and his main operation, Flour Mills of Fiji (FMF) as a "flagship company for our country." On March 18th this year, FMF announced a net profit of F$6.68 million (US$3.70 million) for 2005, a 2.42 percent drop over the last financial year. But Punja is upbeat about FMF subsidiary, Biscuit Company (of Fiji) Ltd., which he says "is very much becoming our star performer. Turnover increased by 89.9 percent on top of last year's 60 percent and profit after tax of 129 percent. Again, most of the improved result was export driven." FMF's total investment in Fiji is around F$15 million (US$8.3 million). Punja has close ties to the current Fiji government, saying (much to the chagrin of other political contenders) that incumbent Prime Minister Laisenia Qarase is "good for business and good for Fiji." Qarase returns the favor. "FMF provides a shining example of what can be achieved in our country, by an investor with good judgment, vision and commitment," he recently stated. This relationship helped Punja, through the government, exert pressure on Vanuatu when that country sought to ban the importation of Fiji-made biscuits. The ban has been overturned, but it was a significant test of regional trade regimes and may have longer term impacts as agreements such as the Pacific Island Countries Trade Agreement (PICTA) start to come to fruition. We can expect Punja will be closely involved in testing the parameters of these agreements in other Pacific markets. Through his stake in a number of regional media companies, Punja has become involved in new businesses such as the launch of Unwired Fiji's new wireless broadband Internet operation. Hari Punja and Sons also has a stake in Communications Fiji Ltd., which operates radio stations in Fiji and Papua New Guinea and is moving to diversify into new media platforms. Punja sits on the Fiji TV board, and holds shares in that company through CFL. Fiji TV has a wide reach over the region, with licensed distribution deals in Tonga, Tuvalu and Kiribati, and a Sky Pacific direct to home satellite service with a coverage area including Fiji to Tonga, Samoa, Vanuatu, Solomon Islands, New Caledonia, Nauru, Cook Islands, Niue, Tokelau and Kiribati. With a coverage list like that, it is clear Hari Punja is leaving no stone unturned in his search for regional business opportunities. 10) John
Campbell John Campbell has steered a steady course as the boss of Air Pacific while other regional airlines collapse or contract around him.
Campbell has told the WINNIE Investment News service, "We do not pretend to be a global company, an intercontinental airline, we serve a specific tourist demand and focus on key source markets into Fiji." Yet its size and relative success, and the fact it is operating in an industry crucial to many Pacific Island nations, mean that Air Pacific, and John Campbell as its leader, exert a powerful influence in the region. Campbell recently announced the airline will add extra flights to Australia, New Zealand and Kiribati, increasing its network coverage to 17 cities. This means Air Pacific's six aircraft will be servicing more than 110 flights a week. Other Pacific Island destinations also appear to be in the works. Campbell says while they have no current plans to service Micronesia, "we are actively growing our regional flights and connections so it will come under review at some point in the future." Air Pacific is 51 percent owned by the Fiji government, and 46.3 percent by Qantas. The rest is divided between regional governments-Kiribati, Tonga, Samoa and Nauru (as of March 31, 2005). While the Qantas shareholding in particular gives it some stability, Campbell's attention to detail has also helped. Air Pacific's 2005-2006 financial results are due for release on May 26. However Campbell has warned that those results will be worse than the after-tax profit of F$24,537 million (US$13,576 million) for the year ending March 31, 2004-05, that the carrier reported last year. That year, annual revenue increased by 4.5 percent to F$440.6 (US$243) million. Campbell said that result was due to stringent cost management in the face of greatly increased competition from no-frills carriers and rapidly rising fuel costs. He anticipates more of the same in 2006. As he told Pacific Magazine over a year ago, the airline is down to counting the blankets (and bottles) aboard in order to maximize fuel efficiency. "We are working harder, carrying more and earning less as the direct consequence of cost and both destination and airline competitive pressures," Campbell says. Another challenge facing Air Pacific has been insufficient hotel room capacity in Fiji. The airline owns a 35.9 percent stake in the newly opened Sofitel Resort and Spa on Denarau Island. No occupancy figures are available for the resort as yet, "but I can confirm that occupancy and trading is stronger than the budget anticipated at this early time," said Campbell in April. Air Pacific is also looking to (re-enter) Fiji's domestic market, Campbell saying, "(we) will commence domestic operations under an Air Pacific subsidiary brand by July." Campbell described his time at Qantas before joining Air Pacific (for the second time in 2001) as a "Mr Fix-It." At Air Pacific and by extension in the region more broadly, Campbell's role is about keeping the airline aloft and the tourism industries of Fiji and associated markets growing.
-- Pacific correspondents Ricardo Morris and Alex Rheeney also contributed to this report. |
