Pacific Magazine > Daily News

Air Kiribati Airfares Skyrocket

By Batiri Bataua on Tarawa
Friday: August 22, 2008

Kiribati's national airline Air Kiribati has sharply increased its domestic airfare by 40 percent to offset increasing price of fuel and operational costs.

Chief Executive Officer Baraniko Baaro explains in 2005 aviation fuel cost 95 cents a liter. In May 2007, it shot up to $1.25. And, in May this year, it reached $1.38 per liter.
“We have to take drastic measures because Air Kiribati has been officially told to stand on its own feet,” Baaro said. “Meaning that subsidy from government in future could not be forthcoming.”

With the new tariff, traveling from Tarawa to the second furthest island in the south, Tamana Island, is now $210 one way. In 2005, the fare to Tamana was $152 one way — an increase of $56. The new fare came into force last week.

Between 2005 and August 2008, Air Kiribati introduced a low rate on a trial period. And Tarawa/Tamana was costing only $80 one way. It was boom time for air travelers and bookings were well in advance. But government was not happy when Air Kiribati asked for more subsidy.

Air Kiribati's board was instructed to revise the cheap rate and to come up with a more realistic fares.

CEO Baaro says, they are expecting a drop in the number of customers with the introduction of the new tariff. “If this happens, we would be looking for other alternatives — like group some islands in one flight,” he said.

Air Kiribati is the only air service for the entire nation, with the exception of Banaba and the remote Phoenix Groups.