Page 34 - IB June 2020

Departure Lounge

BOARDING PASS

the government’s declaration that it would set up another
airline is “ridiculous”.

Air Kiribati has resumed domestic flights, but using
only its Twin Otter aircraft. The airline says all islands will be
serviced by this flight.

Staff restructuring is underway at Nauru Airlines. Ap-
proximately 50 people in its Brisbane office have been made
redundant. Other staff have been stood down. The Nauru
Government is providing the airline with US$16million to
help support stood-down staff, as they don’t qualify for the
Australian government’s JobKeeper scheme as employees of a
foreign company.

Aircalin plans to cut staff costs by 20% to cut its $45
million per annum salary bill. The cuts are expected through
a mix of voluntary departures and redundancies. Airline
International Civil Aviation Organisation Secretary
General Dr Fang Liuhas says regional cooperation will be General Manager, Didier Tappero said a recovery in passenger
critical to air transport recovery post COVID-19. “For your numbers isn’t expected until 2024. The airline has delayed
recoveries to be truly successful, your goal should be to assure delivery of an Airbus it has on order for October to 2023.
not only your State’s local recovery, but also the recoveries Aircalin will no longer fly to Osaka and Melbourne as a result.
of your neighbours and their neighbours,” Dr Liuhas told the
Pacific Islands Directors General of Civil Aviation meeting. She France says it will lend money to overseas carriers
cautioned countries against going-it-alone, noting that “if a such as Air Tahiti Nui and Aircalin, after they called for gov-
common set of goals is not established among all the stake- ernment loans totalling more than US$1 billion. The French
holders being negatively impacted by COVID-19, the strength government is currently flying a chartered Air Tahiti Nui plane
we normally derive from our diversity could quickly devolve to Paris every ten days, mainly to pick up medical supplies.
into unhelpful duplication and inefficiencies.”

The International Air Transport Association (IATA) pre-
dicts airlines will lose $84.3 billion in 2020, with a net profit
margin of-20 per cent. Revenues will fall 50%, down to $419
billion from the $838 billion seen in 2019. Next year, losses
are expected to be cut to $15.8 billion as revenues rise to
$598 billion. “Financially, 2020 will go down as the worst year
in the history of aviation,” IATA says.

The future of Cook Islands government subsidies for
Air New Zealand are under scrutiny reports the Cook Islands
News. The government “underwrites” Air New Zealand’s
return flights to Rarotonga at the cost of US$7.7 million annu-
ally. Since the COVID-19 shutdown these payments have been
suspended. The original arrangement was to be in place until
2022. Flights to Los Angeles and Sydney are also part of the
deal. Air Niugini wants to acquire a controlling interest
in PNG Air. It wants to acquire up to 60% shares through its
subsidiary, Link PNG. However it’s not a foregone conclusion.
Real Tonga Airlines is on the brink of bankruptcy
says Tonga’s finance minister, Tevita Lavermaau. The airline The Independent Consumer and Competition says it is looking
owes lease fees for two aircraft provided by China to service at the transaction carefully as it is likely to raise serious com-
domestic routes, as well as landing fees to the government. petition concerns, as evidenced by an online petition against
Minister Lavemaau claims the airline has been operating at the sale. Meanwhile, NASFUND’s Board has approved the sale
a loss since it was established seven years ago. Owner Tevita of its PNG Air shares to Link PNG.
Palu has asked for more support, telling Matangi Tonga that

34 Islands Business, June 2020