Pacific Magazine > Magazine > September 1, 2006

Air + Sea

Air + Sea

Sept/Oct 2006


Good News For Micronesia
Matson Increases Service, Reverses Trend

Matson Navigation Company has stepped up its western-Pacific shipping
operation, benefiting both the Marshall Islands and the Federated States of Micronesia. For the first time, Matson is now directly servicing three ports in the FSM and is increasing from monthly to every-14-days, its deliveries to Majuro, Ebeye and Kwajalein in the Marshall Islands.

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Since mid-2005, when Philippines, Micronesia and Orient (PM&O) Line—the only other U.S.-based shipper servicing this region—halted service, businesses in the Marshall Islands and FSM have been struggling with repeated food shortages. Kosrae state will arguably benefit the most, moving from a cargo ship every six-to-eight weeks to a guaranteed delivery every 28 days by Matson.

Palau Shipping Company had floated a plan early this year to link with Matson’s U.S. west coast to Guam service to transship into the FSM and the Marshall Islands. The idea was clearly too good for Matson to pass up.

Another change resulting from Matson’s new shipping plan is that after about 30 years, Robert Reimers Enterprises is no longer Matson’s agent in the Marshall Islands. A Triple J/Pacific International Inc. joint venture known as Majuro Marine has taken over shipping agency duties for Matson. North praised the long-term relations with RRE, but said with the expanding use of its Guam hub, Matson needed agents with a wider Pacific perspective. Triple J with its Guam, Saipan, FSM and Marshall Islands interests and PII with its Marshall Islands, Guam and Saipan operations fit the bill. - Giff Johnson

Hawaiian Vs. Togiola
Airline Drama Continues

American Samoan Governor Togiola Tulafono has issued an executive order giving Hawaiian Airlines 90 days to withdraw from the territory—a time frame that will end late October.

However, Hawaiian Airlines does not believe Governor Togiola has the authority to ban the carrier from operating in and out of American Samoa. And the Federal Aviation Authority supports that position.

“We are confident that the order has no legal power and we’re disappointed that Governor Tulafono has taken this action,” said airline spokesman Keoni Wagner. “Hawaiian has responded in good faith to all of the governor’s concerns and we’ve offered to discuss them face-to-face, but he has so far refused to meet with us.”

The executive order, released July 26th says that Hawaiian “engages in discriminatory practices in its conduct of air transport to American Samoa, and...this has caused injury to our people that can be no longer tolerated and is of itself sufficient reason to bar Hawaiian Airlines from entering the Territory to continue its damaging activity.”

But the controversy is creating concern domestically, and not all agree with the governor’s position. American Samoa Senate President Lolo M. Moliga describes the government attitude as “dictatorial.” “While I wholeheartedly support the governor’s efforts to ascertain financial relief for the people of American Samoa reflected in lower airfares, I do not support the approach taken,” he says.

“The Senate is also concerned about this form of action taken against a business operating in the territory and the message it sends to future potential investors who are contemplating the possibility of doing business in our territory.”

U.S. Department of Transportation spokesman Bill Mosley said the federal agency cannot provide any specific comments on the executive order, because no official complaint had been filed by either the governor or Hawaiian Airlines at the time of going to press.

There’s been no clear indication as to who the governor has in mind as taking over Hawaiian’s services. He has suggested only that a charter operation or a commercial airline – with potential territorial government or local financial support — might fill the breach, while declining to name names. - Fili Sagapolutele

OUR AIRLINE Set For Takeoff
Air Nauru Successor To Commence Service

Air Nauru has a new incarnation, and a quirky name. OUR AIRLINE was due to begin twice-weekly flights from Australia to Nauru, Kiribati and Marshall Islands starting September 4.

Nauru’s Transport Minister Dr. Kieren Keke says the combo cargo/130-seat B737-300 aircraft and airline “will enable each partner government and their people to be able to truly say, it is OUR AIRLINE. Nauru wants the airline to be seen as a shared asset and service for the people of the Pacific.”

Air Nauru’s sole Boeing 737 was repossessed last December.

However, Dr. Keke is optimistic that the airline faces new opportunities.  “OUR AIRLINE will bring increased frequencies of services, very attractive fares and a significant boost to the availability of cargo capacity than is presently the case,” he says. - Samantha Magick

Change At Air New Zealand
Tahiti Service In Doubt

The decision by Air New Zealand to discontinue its flights to Singapore, and some flights to London,  has created speculation that it is to review other unprofitable routes, including some in the Pacific Islands region.

Most vulnerable is its service to Tahiti, with Air New Zealand Chief Executive Officer Rob Fyfe saying they are “closely examining the frequency of operations (there).”

“(This is) the beginning of a carefully thought out repositioning process to continue profitably growing Air New Zealand,” said Fyfe, who plans growth for the airline, albeit  in different sectors.

Air New Zealand is nevertheless expanding its regional reach on at least one front. It began a code share service with Air Vanuatu in August.

Air Vanuatu CEO, Captain Terry Kerr said the arrangement will create more exposure and interest for Vanuatu as a growing destination in New Zealand. - Samantha Magick

 

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