Air NZ signs up to support Palau airline

[Wirraway]

NZPA

Air NZ signs up to support Palau airline
07 November 2003

Air New Zealand said today it had signed up to support Palau's start up airline, Palau Micronesia Air.

Alan Seid, president of the new airline, hailed the contract with the "world renowned airline, Air New Zealand".

The Palau airline had planned for a December take-off "but ran into a few hurdles that could not be overcome due to prior operational commitments of Air New Zealand".

"We did our best to leap those hurdles but have come to the conclusion that an April start is now the appropriate launch date," Mr Seid said in a statement.

Air NZ has agreed to to provide a range of support services for the new company including providing pilots and engineering.

Palau Micronesia Air has no engineering and operational infrastructure of its own but will operate its two Boeing 737-300 aircraft under Air NZ's Airline Operating Certificate.

Air NZ ventures general manager Craig Sinclair and the Palau airline said Air NZ pilots would operate the planes initially until locals were trained.

Air NZ has had a similar arrangement with Papua New Guinea's Air Niugini.

Japan Airlines is also backing the Palau initiative and will code share with the new airline which will serve the local Micronesia Islands and the Japanese tourism market.

Palau's main airport in Koror is currently used by Continental Airlines, which operates scheduled services to the island, and Japan Airlines which operates charter flights.

The island of Palau is an independent republic (since 1994) in the north-western Pacific, south-west of Guam. Its main income is derived from tourism and fishing.

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[CT7]

Good diving apparently.....

[snail]

NICE
http://www.visit-palau.com/
:ok:

[ER2nd.]

More details....gee, 5 million. Know anyone who might want to put a few bob in? Maybe they won't need to....




Palau airline to test skies in April

By Scott Radway
For Pacific Sunday News

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KOROR, Palau -- Palau Micronesia Air aims to take to the skies in April, and begin offering a meaningful alternative to Continental Micronesia in the Western Pacific.

With the Palauan full moon flag featured on the tailfins of its two leased Boeing 737-300s, the homegrown airline plans to fly from Palau to Yap, Saipan and Guam, and then on to Chuuk, Pohnpei and Kosrae. The airline also would serve Manila, Tokyo and possibly Darwin, Australia.

"For the first time in Micronesia's history, we, as a people, in both the public and private sectors, have invested our own funds into creating our own airline," said Alan Seid, the airline president.

The airline's December launch date was postponed because Air New Zealand, which has agreed to lease, maintain and initially operate the 737-300s for Palau Micronesia Air, had prior operational commitments, said airline CEO James Bradfield.

In another key agreement for the start-up airline, Japan Airlines has committed to using Palau Micronesia Air to bring its customers throughout Micronesia.

But by all estimates, Palau Micronesia is entering a difficult market where deep-pocketed Continental Airlines has survived. In fact, according to the airline's own business plan put together by Toronto-based Moncrieff Management Ltd., Palau Micronesia Air would be marginally profitable in its first years and vulnerable to an aggressive response from Continental.

Bradfield said, from his standpoint, Palau Micronesia Air is not going head to head with Continental and aims to develop other segments of the market not pursued by Continental. He views Palau Micronesia Air as enhancement airline service to the region and Continental Micronesia as a stabilizing economic force. Palau Micronesia Air's bottom line is the belief there is more traffic out there.

To start, the business plan states $5 million in capital is needed. Bradfield said he is confident the needed funds will be raised by April.

Japanese tourism industry leaders have kicked in $1 million, according to Seid. States in the Federated States of Micronesia and the Palau government also have put in money, along with private investors in the islands. Because of its wide support in the islands, the airline name was recently changed from Palau Air to Palau Micronesia Air.

The first plane, to arrive in April, is expected to be used for travel throughout Micronesia, visiting most islands at least twice a week, and also will land in Manila and Darwin, if efforts to open Australia to flights come to pass, Bradfield said.

Darwin, a northern Australian city just three hours from Palau, is viewed as another potential tourist market for Palau and Micronesia.

The second plane would come online in October and commence direct flights to Tokyo.

Email this story

Originally published Sunday, November 16, 2003

[yellow rocket]

Yes Air New Zealand, Pacific Blue really is coming, and Christchurch is NOT the big picture.

[Wirraway]

Palau was also one of the 16 considered target destinations
by Virgin Blue/Pacific earlier.

Wirraway

[ER2nd.]

It's been said many times before I know....but what an incestuous industry we work in. QF supposedly up close and personal with Air New Zealand and Virgin(s) likewise with their maintainance arrangements. Who's playing who? Who is nibbling away at who?

[big pistons forever]

It would be good do get some competition in Micronesia. I just got back from Holidays in Palau and airfare was very expensive on the monopoly Continental Micronesia. Incidently the Guam-Yap Koror flight only had about 25 passengers (in a 737-800).