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Pasifika Air looking to spread its wings as wealthy investors get on board Mike Pero's new airlineEntrepreneur Mike Pero says his new airline business Pasifika Air will probably have flights to more destinations than just the Cook Islands when it launches later this year.
Pero is seeking approval from the Civil Aviation Authority for Pasifika Air to fly commercially, a process he hopes will be completed by May or June.
He said once Pasifika Air had been granted an operating licence it would be able to fly anywhere within five hours using leased Boeing 737-800s.
Pero said he planned to have flights from New Zealand to various Pacific Islands as well as to Australia, should planned travel bubbles become a reality, and maybe even New Zealand domestic services.
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Pero, who made his name in the mortgage and real estate business, told Stuff that he had originally planned to fund the airline himself, but had been “overwhelmed” by high net wealth individuals wanting to invest.
“Investors have come out of the woodwork from all over the Pacific, not just New Zealand,” Pero said.
He said he now had seven or eight times the investment he started with and the company would have a start up value of between $10 million and $20m.
“We’ve got more than we need at this stage.”
He registered Pasifika Air with the Companies Office on December 2. Pero is the sole director and his company MPZ One is the sole shareholder.
Pero said more investors would be added as shareholders.
Just prior to Christmas he was in the process of putting together a contract with a London-based aircraft lease company to lease two Boeing 737-800s.
The contract would be a dry lease, meaning just the aircraft would be provided, no additional services such as crew, he said.
He said he did not want to go into aircraft configuration details at this stage.
Pasifika Air’s website is advertising three flights a week from Wellington and Christchurch to the Cook Islands’ capital Rarotonga.
The airline would focus primarily on the Cook Islands but other islands would probably be serviced as well, and he had already been approached by other island nations, he said. It may end up operating from other ports in New Zealand too, he said.
“In all honesty I don’t know where exactly we will be on day one. But I can tell you categorically that it will most likely be more than just the Cook Islands.”
Pero said he intentionally selected routes that Air New Zealand did not fly to not compete with the national carrier directly.
“I don’t see us going on head on with Air New Zealand anywhere.”
Before he was in real estate Pero worked in aviation, having gained his commercial pilot licence in his 20s and flying for Mt Cook Airline.
After starting his mortgage business he also became involved in Nelson-based airline Origin Pacific Airways as a shareholder, executive and director.
Origin Pacific collapsed in 2006, owing $21m to creditors, including Pero who lost a “significant sum of money”.
“It was a good learning experience.”
Pero said Pasifika Air’s management team had experience working at airlines including Virgin Australia, Pacific Blue and Air New Zealand.
He said the airline would have the equivalent of about 40 full time staff and would operate on a contractor model.
Pero said he had a passion for the Cook Islands, as a landowner and resident there.
“My heritage is there.”