Pacific Magazine > Magazine > June 29, 2007

Air And Sea

Air And Sea

By Samantha Magick

BY AIR

Virgin Blue, plans to invest over US$816 million to equip and launch a new international airline for Australia from 2008. Virgin Blue has already said that it is interested in routes to Asia and the USA. Virgin Blue entered Australia's domestic market in 2001 with just two aircraft. Today, it serves over 30% of the Australian domestic market, operating 315 flights daily to 22 Australian destinations, New Zealand and the Pacific.

Fiji’s Cabinet has endorsed a review of the Fiji/Singapore Air Services Agreement in order to allow a carrier to fly the route. Interim Prime Minister Commodore Voreqe Bainimarama said that the review of Fiji /Singapore Air Service Agreement [ASA] would allow a carrier to fly the Fiji/Singapore route. “If this review is successful, we should expect a greater inflow of tourists particularly from India to Fiji. "It is also an important trade infrastructure for our exports to Asia under our Look North policy.”

 Air Pacific’s Chief Executive John Campbell says the removal of flights from certain routes will save money for the international carrier. Flights to Sydney, Brisbane, Auckland and Japan have been reduced in frequency. "We have reduced flights to Auckland from 14 to 11 weekly, to Sydney from 11 to seven weekly, on Brisbane from seven to six weekly, to Japan from three to two weekly and on the Los Angeles route where we had planned to increase flights to five weekly we have cut back some of the planned growth and will only add the fifth flight in the absolute peak July/August period," says Campbell said the service reduction was expected to go through until December but the airline would continue to monitor the demand from these routes.

Air Pacific and Air New Zealand started a joint daily code share flight between Nadi and Los Angeles May 7. "This new schedule provides more choice for customers as well as ensuring the route remains for both Air New Zealand and Air Pacific,” says Air New Zealand group general manager Short Haul Airlines, Norm Thompson.

Emirates Airlines has been approached by the Fiji government to provide a twice weekly service to Fiji. Tourism minister Bernadette Rounds-Ganilau made this request of Wayne Pearce, the Vice President of Operations of ETIHAN, the major airline for the United Arab Emirates, and Prince Ahmed Bin Saeed Al Maktoum, the Head of Emirates Airlines, Minister for Civil Aviation and also a member of the Dubai Royal Family.

Continental Micronesia is operating summer scheduled services between Guam and Saipan to Osaka, Japan.  The airline added the new schedule in response to strong demand for travel to Guam and Saipan from Osaka, and “in order to support the local island economies.”  Continentals’ Boeing 737-800 aircraft with 155 seats will service the twice daily routes between Saipan and Guam and Osaka beginning August 1 through September 3, subject to approval from Japan’s government. 

Meanwhile Continental has suspended its air cargo service to Yap indefinately, due to "severe weight/payload restrictions." In a statement it says the embargo will be lifted once jet fuel becomes readily available at Yap International Airport.

Asian Spirit has reduced its Koror-Davao to once a week, and has added flights on its Koror-Cebu route. Asian Spirit Vice President for Commercial Operations Butch Rodriguez says "We still believe in the potential of Palau". The airline is also looking at a possible flight to Yap.

The touching down of an Air China Boeing 767 aircraft at Port Vila’s Bauerfield Airport in late March with the Vice Premier of the Chinese State Council Zeng Peiyan aboard has given hope to authorities trying to negotiate more use of the airfield by wide-bodied jets. Access to the country is largely provided in narrow body Boeing 737 jets out of ports in Australia, New Zealand, Fiji, Noumea and the nearby Solomon Islands.  Airports Vanuatu Limited CEO, Hendry Joewangeh says the airport design is to wide body aircraft standards, but this is the first time such an aircraft has used the facilities. Vanuatu is talking to a number of operators regarding the possibility of wide body services operating from Asia to Port Vila, to provide more direct access to the growing number of visitors from Asia, and visitors from Europe traveling via major Asian gateways. 

Air Vanuatu has ordered three Harbin Y-12s from China, in order to replace its aging de Havilland Twin Otters fleet. Air Vanuatu general manager sales and marketing, John Laloyer says the acquisition is “part of modernizing the fleet and down the road we will need to look at upgrading the ATR 42-300 to a newer model.”

Air Niugini will buy a new Boeing 767 and F-100 aircraft to compliment its regional expansion program. The airline has begun an ambitious service to Nadi, Fiji, using its F-100 aircraft. The new jet is expected to take on some routes currently been serviced by the airline’s only other B767 aircraft, which is registered in Air Niugini colors as P2ANG.  Meanwhile Air Niugini’s inability to obtain approval from the Air Safety Regulator means an international service between Rabaul and Cairns has been put on hold. Air Niugini’s marketing general manager Jeff Murdoch says the airline was unable to obtain approval from the Air Safety Regulator for operations to proceed as rescue and fire fighting equipment did not meet international standards, and international standard security scanning equipment is not installed at Tokua airport.

Air Tahiti Nui has been granted a tax exemption on the purchase of its fifth Airbus plane 35 months after requesting it and 22 months after receiving an agreement in principle from the French government tax authority.  Oceania Flash reports that while this is good news for the airline whose deficit totaled US$41.2 million at the end of 2006, Air Tahiti Nui CEO Geffry Salmon said he does not foresee a return to a balanced budget until 2008-2009. The airline's accrued deficit totals some US$70.6 million. The tax exemption means the airline will save some US$35.3 million off the purchase price for the A340-300 aircraft.

Government owned Tonga Airports Ltd. or TAL is expected to take over the management of all Tongan airports, including the Fua'amotu International Airport, the Lupepau'u International Airport and four domestic airports on July 2. Acting CEO Viliami Ma'ake says TAL will be responsible for most of the operations at the airport, the air traffic control, the maintenance and development of runways and terminals and fire services. Ma’ake says privatization will enable the managers to focus on upgrading and maintaining the country’s airports.

The U.S. Department of Transportation (DOT) has granted U.S. based Delta Air Lines Inc. authority to hold a “blanket open-skies certificate” to operate flights between the United States and four countries in the South Pacific including Samoa and Tonga. This approval was made possible because Samoa, Tonga, Cook Islands, New Zealand and the United States are signatory countries to the Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT) open skies agreement, according to DOT records reviewed by Pacific Magazine. There has been no immediate comment from Delta’s headquarters in Atlanta, Georgia as to when it plans to operate flights to Samoa and Tonga or other Pacific countries.

The acquisition of a newly leased Embraer E-170 jet by Solomon Airlines is part of the rebuilding process for the tourism industry says Solomons Finance Minister Gordon Darcy Lilo. The 70-seater aircraft will be servicing Solomon Airlines international routes, which include flights from Brisbane, Santo, Nadi and Honiara.

Airlines PNG has indefinitely suspended flights to several airports and airstrips around the country. Provinces affected are Central, Northern (Oro), Milne Bay, Gulf, Western, Western Highlands, Morobe, Madang, East Sepik, West Sepik (Sandaun), Southern Highlands, Simbu and Bougainville.“It has become necessary due to circumstances largely beyond the airline’s control, and which have placed abnormal demands on Airlines PNG’s crewing arrangements for its complete domestic network and charter operations,” said the airline in a statement. “Unfortunately, this situation is continuing for much longer than expected and we are unable to forecast when it might end.

Hawaiian Airlines  lost $11.9 million in the first quarter, slightly less than the loss in the first quarter of 2006. Hawaiian Holdings (NYSE: HA) said its operating revenue had improved to $215.2 million in the quarter, up from $212 million a year ago. Mark Dunkerley, the airline's president and CEO, attributed the loss to the pressure from competitors and for weakness in the interisland market.

Meanwhile Hawaiian Airlines is contracting Air New Zealand to maintain Hawaiian's fleet of Boeing 767-300 aircraft in Auckland, the Dominion Post has reported.

A bill seeking to include Peleliu, Aimeliik, Ngchesar, Ngatpang, Ngeremlengui and Angaur states as official ports of entry into Palau for air and sea travel is making its way through the Palau House of Delegates. The 12 official ports of entry of Palau to be included according to the Bill are Malakal Harbor, Arekabesan Seaplane Ramp. Airai Airstrip, Peleliu Airstrip, Peleliu Sea Port, Aimeliik Sea Port (IPSECO), Angaur Airstrip, Angaur Sea Port, Tabrengesang Sea Port, Ngchesar State, Ngatpang State and Ngeremlengui State.

The Guam Airport Authority is installing additional runway lights near the Toto Mobil and McDonalds. The ongoing extension of the airport's two active runways requires that additional Runway Alignment Indicator Lighting Systems be installed for the guidance of aircraft upon approach for landing.

BY SEA

From July 7 Micronesian Shipping Agency will no longer function in the port of Majuro. General Manager Phil Welch says "due to decreasing revenue and reduction in the overall fishing vessels..we are unable to maintain adequate staffing of professionals." Majuro Marine will act as Liner Agent for Swire Shipping from that date. Fedex will suspend shipments into Majuro until a suitable replacement can be found. Japan Tuna Corporation and other fishing, airfreight and seafreight operators will make announcements as to their replacements in due course.

Horizon Lines is ready for the expected economic boom on Guam resulting from the military’s expansion. Executive vice president John Handy says “That is the reason why we are deploying five new ships in our Guam service. As a major player here, it is important for Horizon to be ready for the increase in shipments that will result from the military’s expansion on Guam.” Horizon Lines is deploying five new, U.S.-flag vessels that will be deployed in Horizon Lines’ TP1 service linking the U.S. West Coast with Guam and Asia. The first of them, the Horizon Hawk, has already arrived on Guam.

Express Freight Management is the new agent for New Zealand shipping firm Sofrana Unilines (NZ) Limited. Managing director of Sofrana Unilines Benoit Marcenac recently announced the change of Sofrana Unilines PNG’s representation agency from Adsteam Agency to EFM. Sofrana’s involvement in PNG is extensive, with the four ports of Port Moresby, Lae, Rabaul and Lihir being called on a regular basis from New Zealand and Australia. 

Fiji Ships and Heavy Industries needs to finalize its project on constructing an efficient slipway and becoming a ship repair operator says Fiji’s Minister for Public Service, Enterprises and Public Sector Reforms, Poseci Bune . He says one of the biggest challenges facing the Company is the aging slipway facilities which need to be replaced immediately. He says the company’s aging assets had contributed to its dismal financial performance which has accumulated a loss of $95,000 as at August, 2006 and has urged the company’s new board to appoint a substantive Chief Executive officer soon. The Board Chair is Leo Smith and new members include Captain Tevita Robanakadavu, Captain Malcolm Peckham and Alexander O’Conner.  

Total Marine Fuels has now begun supplying bunkers in Fiji, following its acquisition of the shares and business interests of Shell Fiji Limited. Total is offering ex-pipe marine gas oil (MGO) and IFO180 fuel in Fiji, thus expanding its overall bunker supply presence in the Pacific Islands, where its existing facilities include those in New Caledonia (Noumea) and French Polynesia (Tahiti).

The member lines of the Oceania Vessel Sharing Agreement (Hamburg Süd, Hapag-Lloyd, and Maersk Line) are upgrading their services linking the  West Coast of North America with Australia / New Zealand from mid July.The Pacific Southwest String (PSW) will utilize six 2,500-TEU vessels, replacing smaller tonnage in order to better handle expanding customer volumes on the trade. The weekly PSW rotation will be Oakland, Long Beach, Auckland, Melbourne, Sydney, Tauranga, Suva, Honolulu (monthly) and Oakland. The fortnightly PNW rotation will call Oakland, Seattle, Vancouver, Long Beach, Tauranga, Sydney, Melbourne, Adelaide, Auckland, Papeete (Tahiti) and Ensenada, (Mexico) before returning to Oakland. The changes will take effect from the southbound PSW sailing of the Cap Delgado departing Oakland on 19 July (Voy. 928 SB), and 20 July with the departure of the Santa Federica from Seattle (Voy. 728 SB) on the PNW rotation.

Ken Tagawa, a "seasoned port manager" from Hawaii, is the Port Authority of Guam’s new general manager starting July 1. Port board Chairman Monte Mesa says Tagawa is expected to bring the port up to speed with efforts to improve its capability to handle an influx of cargo when the military buildup goes into full swing.