| Aviation: THE STATE OF THE DOMESTIC CARRIERS |
3 show glow of prosperity, others on borderline.
Few of the region's domestic airlines show a healthy hue. Three of them, Airlines PNG, Air Tahiti and Air Rarotonga, can show a glow of prosperity.
Most others fly along and some under borderline of profitable business.
| Airlines PNG... looking at expanding its wings outside of PNG. |
Now PNG's largest domestic operator, the privately-owned Airlines PNG is the second largest airline in the country.
According to its chairman, John Wild, the airline is engaged in merger talks with another local operator.
In Australia, it runs three Dash 8s through a subsidiary, Queensland Regional Airlines, and would like to invest in aviation elsewhere in the Pacific, such as Fiji.
Since November, Airlines PNG had gone head-on against the national carrier, Air Niugini, by operating flights (Monday to Friday) from Port Moresby to Cairns, Australia.
Although it uses smaller, slower Dash 8 prop-jets against Air Niugini's Fokker 100 jets, the smaller airline is hurting the bigger one's previous monopoly on the route.
Fares from around Kina 1300 return, including levies, are several hundred kina below the competitor's lowest rates.
The Dash 8s are operated with limited seating for “better than business-class legroom” and Air Niugini claims to be the first and only Dash 8 operator to offer inflight DVD movies on each trip .
Cabin service includes free snacks and drinks and its timetable is devised for easy connections with Brisbane and Melbourne flights by budget carrier Virgin and Jetstar.
Airlines PNG is considering additional daily flights including weekend services.
“We have continued to seek new opportunities and our sister company (Queensland Regional) has added a few more mining contracts to its brief,” the airline says.
After operating internationally to New Zealand, Australia and Hawaii, the 100 percent government- owned Polynesian Airlines has had its status reduced to domestic and limited sub-regional flights so as to make way on its former jet routes to Polynesian Blue, a Samoa Government/Virgin Blue joint venture.
Chief executive officer John Fitzgerald left the airline at the end of January after nine years as its financial director and three years as CEO.
He explained that he disagreed with the contraction of Polynesian and had “differences of opinion” about the deal for Polynesian Blue with Virgin Blue.
It was time to move on, he said, noting that in its latest completed financial year (2004-05), Polynesian was expected to make a profit exceeding WS$4 million (US$1.3 million), a full two years ahead of a target plan for recovering from years of losses.
Recovered profits were due “completely to sacrifices and dedication by most of Polynesian's staff, he said.
Polynesian is reduced to domestic flights and flights to American Samoa, Vava'u and Nuku'alofa in Tonga and to Niue. It is down to one Twin Otter and a Dash 8 leased from Airlines PNG.
There is speculation about the life of the lease. A further blow is competition on the busy Samoa/American Samoa service, which it had to itself after an American Samoa competitor, Samoa, Air, went out of business in 2003. Now it competes against two newcomers from American Samoa.
Inter Islands Airways operates to Samoa with a Shorts 360, formerly operated by the defunct Royal Tongan Airlines.
South Pacific Express operates locally and to Samoa with two 19-seater Dornier 228s, one of which was bought recently from Air Tahiti.
In Tonga 18 months ago, there was political resentment when, after the collapse of the government-owned Royal Tongan Airlines, thanks to losses from wildly ambitious international flights with a leased Boeing 757 jet, monopoly was granted for domestic flights to Peau Vava'u Airways, controlled by Crown Prince Tupouto'a and his business associates.
This enterprise operated with 60-year-old DC3s hired from a New Zealand company but failed to meet all the requirements of its operating licence, including services to remote outer islands the DC3s couldn't handle.
By the end of 2005, Peau Vava'u was down to operating erratically and irregularly with a Convair 440 diverted from a Niue/Fiji cargo service begun by a New Zealand operator. It was talking about obtaining a Beech aircraft and Queenair.
With local air services practically paralysed, the Tongan government invited tenders from abroad.
Four bids were made and a permit was granted to Airlines Tonga, formed by a local travel business, Teta Tours and Air Fiji.
Tongan authorities said the position and services of Airlines Tonga and Peau Vava'u would be reviewed in March and the airline fully meeting its commitment would get a domestic service monopoly.
Air Fiji is about to send a second Harbin Y12 to Tonga for the expansion of trunk route flights to outer island ports.
Solomon Airlines last July announced the suspension of unprofitable domestic routes and additional frequencies for money-making ones.
It has ambitions for once again operating some international services with its own leased jet in place or an Air Vanuatu jet now used.
Having once again absorbed the unprofitable local carrier, Vanair, on government orders, the 100% government-owned Air Vanuatu reports that its domestic flights are making money.
In January, air service agreement talks between Vanuatu and New Caledonia had reciprocal rights for Air Vanuatu and Air Caledonie International (Aircalin) under discussion.
Air Vanuatu would like to operate its ATR-42 to Magenta, Noumea, from Port Vila, Tanna and Santo.
Air Caledonie has announced a US$50 million order for an ATR-42 and two ATR-72s for the replacement of old aircraft of the same type.
Air Tahiti has ordered an 68-seater ATR-72 for June 2008 delivery and an option on a second. Its sixteen other ATRs carry about 720,000 passengers a year between Tahiti and 42 other ports throughout French Polynesia.
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