Tuesday at Honiara International Airport. A 162-passenger Air Pacific Boeing 737-800 is boarding passengers for Vanuatu and Fiji. A 94-passenger SkyAirWorld Embraer 190 has just landed from Brisbane. Solomon Airlines and Pacific Blue Boeing 737-800s flights are in the air heading for Honiara from Brisbane.
It’s rush hour at the gateway airport for the Solomon Islands. Pilots and ground staff are working hard to get flights in and out on time.
The international terminal tarmac has space for only two jets at a time. Any delays leaving two planes parked at the terminal mean incoming flights have to wait near the smaller domestic terminal with their passengers aboard.
The planners for the Japanese-built Honiara international terminal never allowed for a time like Tuesday lunchtime rush hour.
It is generated by the fierce, fare slashing competition on the busy Brisbane-Honiara-Brisbane route. National carrier Solomon Airlines, emerging Brisbane-based SkyAirWorld and Pacific Blue, the international offshoot of Australia’s Virgin Blue, now compete head to head in flights across the Coral Sea.
All three airlines are trying to position themselves to win this fierce new battle. More is at stake than just getting the most passengers. Pacific Blue, especially, and SkyAirWorld both want to pressure Solomon Airlines into partnerships with them.
So far, travellers and Solomon Islands tourism are the winners. Fares have been slashed since Pacific Blue entered the route in early December.
Some examples:
# Through Christmas and the first weeks of the New Year, SkyAirWorld offered seats one way at AU$125 plus taxes. It also provided full complimentary inflight service.
# Solomon Airlines offered a Honiara-Brisbane-Honiara return fare of SB$1999 (about AU$392) including taxes. This also included full complimentary inflight service.
# Pacific Blue offered seats Brisbane-Honiara at AU$128.29 including taxes going into late January. It appeared to be undercutting anything offered by Solomon Airlines out of Honiara and getting good loadings. This despite its no-frills policy, meaning passengers pay extra for inflight meals, drinks and entertainment.
Pacific Blue’s price attack on Solomon Airlines is not surprising. Political as well as commercial battles are being fought.
Case in point is Tuesdays, when the competition comes to a head. Honiara flights light up on the big departure information board at Brisbane International Airport. 8am (SkyAirWorld), 9.30am (Solomon Airlines) and 10.10am (Pacific Blue). All bound for Honiara. Not even the South Pacific’s number one tourism destination, Nadi in Fiji, has a departure lineup like that.
Solomon Airlines (four flights a week from Brisbane), SkyAirWorld (three) and Pacific Blue (two) are marketing the Solomon Islands and battling for market share. It’s a timely boost for the country’s new emphasis on tourism development. More hotel rooms are needed. The extra seats on planes are not matched yet by extra beds in hotel and resort rooms.
What is going on?
Solomon Airlines appears to be a target of both Pacific Blue and SkyAirWorld. The national airline no longer has an international aircraft of its own after a leasing dispute with SkyAirWorld.
It now uses an Air Vanuatu Boeing 737-800 on Tuesdays from Brisbane and Nauru’s Our Airline Boeing 737-300s for Friday, Saturday and Sunday flights. All carry Solomon Airlines cabin crew and provide the airline’s popular inflight service.
Pacific Blue is believed to want to pressure Solomon Airlines into a similar arrangement to what it has for its new Papua New Guinea service. Under this, Airlines PNG dropped its Brisbane-Port Moresby-Brisbane flights. It now flies its passengers on Pacific Blue’s flights on a codeshare arrangement.
When it could not get its way with Solomon Airlines, Pacific Blue applied direct pressure. It launched head to head competition with Solomon Airlines on Tuesdays and Thursdays. Solomon Airlines shifted its own Thursday flight to a Friday. But on Tuesdays Pacific Blue’s flight operates within 40 minutes of Solomon Airlines. Solomon Airlines is hurting, with Australians in particular travelling with Pacific Blue.
SkyAirWorld is also known to have made a similar proposal to fly Solomon Airlines passengers on SkyAirWorld planes under a code share arrangement. Its fuel-efficient fleet of new Embraer regional jets means it needs lower passenger numbers than Solomon Airlines and Pacific Blue to operate profitably. It and Solomon Airlines also have unresolved legal issues going back to the controversial end of their agreement where Solomon Airlines leased a SkyAirWorld Embraer 170.
When SkyAirWorld launched Honiara flights last year, it hired the commercial manager at Solomon Airlines, Wilson Ne’e, as its man in Honiara. Solomon Airlines countered by luring back the experienced Gus Kraus from Air Niugini. Kraus was previously a successful top commercial man for Solomon Airlines. He is now using his wealth of experience to counter Pacific Blue and SkyAirWorld. One major weapon he has in his arsenal is that Solomon Airlines provides the only domestic connections to the popular Western Province tourism destinations.
Pacific Blue/Virgin Blue provide a network of connections, and special fares between Honiara and Australian and New Zealand destinations. Solomon Airlines has long-standing “inter-line” arrangements with other airlines. SkyAirWorld cannot yet match the marketing reach of its competition. But it is growing steadily and its Premium Business class attracts high-yield customers.
Within the Solomon Islands Government, it is believed there are three different viewpoints on the airline situation.
Some want the national carrier to continue to operate its own international services, no matter the financial challenges. Some are known to support the airline getting its own international jet again.
Others back a deal with Pacific Blue and point to the success of the Pacific Blue joint venture with the Samoan Government. Yet others prefer a deal with SkyAirWorld. Its chief executive, David Charlton is offering the Solomon Islands a tourism-focused package that includes developing resorts and domestic services.
The early months of this year will be crucial in the air wars. Much will depend on what the Solomon Islands Government does, or does not decide, on Solomon Airlines international services.
Until then those busy Tuesdays at Honiara International Airport are likely to continue.