Pacific Magazine > Magazine > January 1, 2007

Air & Sea

Phoenix Rising

Our Airline Begins Service


When Air Nauru’s sole aircraft was repossessed in December 2005, there was a lot of skepticism about whether the airline would be able to fly again. At one stage it was losing $20 million a year.


But thanks to the Taiwan government and the determination of the Nauru government and Air Nauru managers, Our Airline has risen from Air Nauru’s ashes with a twice weekly service linking Brisbane, Australia with Solomon Islands, Nauru, Kiribati and the Marshall Islands.

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Nauru’s transport minister Kieren Keke says Our Airline is
a much leaner proposition than its predecessor.


“We’re restructured the whole company…we reduced staff numbers by about 37
percent. We’ve undertaken many other cost cutting measures in terms
of operations, and this has now got us to a point where we are now able to operate the current sector at pretty much break even point, so what the airline is trying to do is add routes that will basically add to the bottom line and ensure the airline is viable.”


After Air Nauru lost its plane in December 2005, Air Pacific stepped into the lucrative Fiji-Kiribati route, and the Fiji government initially denied Our Airlines landing rights in Fiji, in a bid to “protect Air Pacific” and that route. But Keke describes Fiji as a priority destination, and as Pacific Magazine was going to press, discussions were underway for Our Airline to operate between Majuro and Nadi.

Kieren Keke. [PHOTO: BRUCE SOUTHWICK/ZOOMFIJI]

“It’s very important for Nauru and the other small countries we service to be able to get to Fiji in a cost effective manner,” Keke says. Similarly he hopes Our Airline will be able to resume flights between Australia and Norfolk Island, a route that was taken over by an Australian charter operator after Air Nauru’s demise.


Keke says leaders in Federated States of Micronesia and Marshall Islands have also asked Our Airline to provide a link to Pohnpei, Palau and Manila without going through U.S. controlled Guam.

“There’s a lot of demand from the North Pacific, which don’t have good north-south connections. They have very effective east-west service running for them but a lot of countries there repeatedly tell us they need a north-south connection. … the airline will be looking at the various options there to provide that link,” Keke says.
Keke says the key to Our Airline’s longevity is regional ownership, although Keke said Nauru is not looking for financial investment.

“What they can bring to the table is their commitment to the airline and their sovereign air rights,” he says. “We’re willing to give shares (in Our Airline) for virtually nothing because we believe the longer term future of Our Airline is difficult just being owned by Nauru.”

     —SM, GJ

 

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