Pacific Magazine > Magazine > November 1, 2006

Air + Sea

Air + Sea

Nov/Dec 2006

Polynesian Blue Records Pre-Tax Profit
Virgin Looks To More Regional Partnerships

Good financial results for Polynesian Blue airlines have shareholder Virgin Blue looking at other opportunities in the region.

After a decade which saw the Samoan government inject almost SAT$100 million (US$36 million) to prop up its national carrier, the tide appears to be turning. Just one year after launching its joint venture with Australia’s Virgin Blue, Samoan-based carrier Polynesian Blue has recorded a pre-tax profit of  $NZD1.19 million (US$1.01 million) for the 2005/06 financial year.

Samoa Prime Minister Tuilaepa Sailele Malielegaoi was ecstatic at the news. “This is the first time in a decade that the government has been in a position to progressively re-direct critical funds to health, education and other essential services rather than prop up Polynesian Airlines with taxpayer money,” he says. “The joint venture model is a shining ‘Pacific’ star, not just for Samoa itself, but for Samoans throughout the region.”

Polynesian Blue was launched in October 2005, replacing Polynesian Airlines as the national carrier of Samoa. Under the merger, the government and Virgin Blue owned 49 percent shares with the remaining 2 percent owned by a local shareholder, the owner/operator of Aggie Grey’s Resort and Hotel.

The merger helped play a significant role in boosting tourist numbers to the region. Total visitors rose 18.4 per cent during the November 2005 to June 2006 period, compared to an average annual growth over the previous 10 years of just 3.9 per cent.

Virgin Blue Chief Executive Brett Godfrey says, “this is a tremendous result for an operation that is less than 12 months old and demonstrates the economic, tourism and social benefits that can be generated by dynamic partnerships.” — Peter Rees/Samantha Magick

Caroline Air Grounded
Fuel Supply Options Still Open

Caroline Islands Air remains grounded in Pohnpei pending arrangements for fuel delivery for its three small aircraft. The airline was grounded in August in the wake of PM&O line’s discontinuation of service.

CIA had been relying on the shipping line for its fuel supply. Alex Tretnoff, CEO of the airline, says he is pursuing fuel supply agreements with other regional shipping lines and tentatively anticipates a fuel shipment at the end of October from Australia via Majuro. The airline, established 10 years ago by the FSM government, provides passenger and cargo service primarily between Chuuk and Pohnpei. — Jessica Chapman

Air Links Between Solomons, Nauru Likely
Our Airline Hopes To Resume Service

Our Airline Chief Executive Geoffrey Bowmaker. [Photo: Giff Johnson]

Nauru and Solomon Islands have signed a new Air Services Agreement, opening the door to Our Airline, Air Nauru’s successor, to resume flights connecting Honiara with Brisbane and Nauru.

Nauru’s Transport Minister, Kieren Keke says the new agreement will benefit and improve services that can be delivered on a collaborative approach between island nations on aviation matters. Our Airline began twice weekly services on Sept. 4 between Australia to Nauru, Kiribati and the Marshall Islands. — Samantha Magick

Asia Pacific’s Cargo Capacity To Increase
More Guam-Hawaii Flights May Be Added

Asia Pacific Airlines appears poised to more than double its charter cargo service to Pohnpei. The Guam-based airline has already added non-scheduled charter service to its two weekly flights to accommodate the renewed operations of fishing company Luen Thai Fishing Venture.

Robert Walker, vice president and general manager of APA, says the airline is also interested in adding up to two additional scheduled flights on its eastbound route from Guam to Honolulu. APA and LTFV are divisions of Tan Holdings Corporation. — Jessica Chapman