Another Australian Airline to receive a Melanesian flogging?

[Red Jet]

Hopefully Strategic will not commit the same crucial mistake as its predecessor in extending credit to the National Airline of a country where its leaders condone the practice of incurring debt without honoring it.

Airline to get new aircraft in August Thursday, 07 May 2009 SOLOMON Airlines will get its Airbus 320-200 aircraft in August this year.

This follows the signing of an agreement between the national career and Strategic Airlines of Australia, which will lease the plane.

Solomon Airlines board chairman Billy Tyson announced the deal last night.

“This is an exciting time for the airlines to full its promises to the Solomon Islands public by engaging in such important arrangement,” Mr Tyson said.

"The aircraft will give Solomon Airlines the added capacity required to meet the growing tourism trends to around 18 per cent annually which may expect future growth," he said.

Strategic Airline has been involved in transporting military personnel from Australia to the Middle East.

It started business some four years ago in Australia.

"This is the first partnership for us with a commercial airline services," says Shaun Aisen, Executive Director last night.

He said the deal was made possible after two and half years of concrete discussions.

"It’s a partnership for a longer term and we are committed to provide solutions and aircrafts for Solomon Airlines," he said.

The airbus last year was chartered to bring more than 100 students at USP, Fiji, back to the Honiara.

The new aircraft expects to increase its capacity in cargo and passenger loading once operational.

The new agreement will mean once the airbus starts operates in August, Solomon Airlines lease deal with Our Airline of Nauru will cease.

The modern airbus aircraft has 12 business class and 144 economy seats.

The service will be operated by Strategic owned pilots, but with local cabin crew.

The airline is also hopeful to review its domestic service and acquire a Dash 8 to service the domestic sector.

Solomon Airlines Executive Officer Ron Sumsum said this is an exciting time for the airlines, which shows the commitment by the board and support rendered by the national government.

Former Chairman of the airlines and now Minister of Education Matthew Wale said the airline has taken a step in achieving some its objectives to offer the much needed service for the country.

He said the government is excited about such development and the airline must utilise the opportunity to its maximum benefit.

Those that attended last night’s ceremony include Minister of Culture and Tourism Seth Gukuna, board members, Attorney General Gabriel Suri, Investment Cooperation of Solomon Islands officials, airline staff and bank representatives.

[SelCal Check OK]

Could be interesting.

Strategic has the defence contract for the 330, maybe the tie up with SOLAIR will also have capacity for the SOL RAMSI movements, and of course there are other smaller military movements around the place, Dili comes to mind.

[lordofthewings]

Hope its not container loading.. Going to see lots of delays and lots of damage :=

[frigatebird]

Red Jet -"Right On"-. Still the same conmen in the Solomons once again shuffling the deck of hopefull "National Airline Wannabees". When will other people in the industry ever learn?

[sayallafter]

AUS to HIR...PB, OA, PX, FJ, NF and now Strategic (have I forgot any carriers).

Must be a popular place!!

[WangFunk]

Solomans still a military hot zone for oz. Maybe they know something we dont?

[frigatebird]

WF. Just unemployed or lazy young men and rabble rousers with time on their hands for trouble, aided by seniors in corruption and graft. Unhealthy with malaria and diseases, no wonder there have been few tourists in the past 30 years. The knowledgable ones stayed away. The Brits handed over a going concern at Independance, but local management and the above have reduced the economy to basket case status. Beautiful, mostly extinct volcanic islands, and coral lagoons, being stripped of resources by mainly South-east Asian businessmen. Pity about the one-talk system, any individual with a bit of drive and nous gets pulled back into the clan and is expected to support the lazy. Works at an International level too, the World owes them a living and Aid payments, so they can continue this way. Poor Souls. And for many it is God's will, and don't ask key people in the local international airline to work on a sabbath either. Without expats the place would have totally collapsed years ago. It is a collection of jealous tribal groups on very seperate and different islands, not really a Nation as is normally thought.

[Falling Leaf]

AUS to HIR...PB, OA, PX, FJ, NF and now Strategic (have I forgot any carriers).

You can add S9 - Skyairworld to the roll of dishonour.

[Crew rest.]

...and Ozjet.

[sayallafter]

Crew Rest

Oz didn't do the HIR flying in it own right, just "wet lease" to Solomons Airlines.

I did forget the very obvious "IE" though.

[WangFunk]

Im fully aware of this Frigate....Pretty much sums up most South Pacific Islands does it not? Our government.. Not governing in this department, only free handouts to look the other way. Look at islands close to coasts of most developed nations and it sings a different story!!

Shame. Our closest neighbours are being raped by Asian governments and businessmen/women alike. These places are prob the most beautiful in the world apart from all the bull****.

20 years from now, you can bet our bottom dollar!!!!! Although, it wont be worth much then

[apacau]

Strategic is sounding more and more like SAW. And we know where they went...

[Rudder]

Got it in one Apacua

[ithinkso]

The good news is, it looks like OA's demise will be sooner rather than later.

Unlike SAW, strategic will be paid through the IATA clearing house, guaranteed to receive money owed. They're a bit more organised!

[Rudder]

IthinkSo.

So are you saying they are taking load factor risk.

What a great deal that is to the Solomons!!

So unless the Solomon Government are buying all the tickets and paying up front its just a road to nowhere. The IATA clearing house do not pay out charters and guarantee payment in that case.

Personally I think you are talking CR#P.

[THE-BOOB]

IATA clearing house will cover charter risk if the Airline involved is an IATA partner.

Thats old news.

[Rudder]

Hi The Boob,

I very much doubt that is the case but would appreciate the reference to where this is verified.

However the only way they would do that would be if the other party to the transaction are also a member of IATA such as a travel agency "and" they chartered the whole aircraft. I very much doubt that the Solomon Island Government quite meet that criteria.

There is no way that IATA take charter payment risk from just anyone. If they did then any operator could just go and find a dodgy charterer.

Happy to admit my mistake with the reference to the old news.

[THE-BOOB]

I work for an airline that does this regularly.

As long as Solomon Airlines remains an entity, and continues to sell tickets, it will be liable, through IATA, to repay its debt.

Solomon Airlines is the Airline, Strategic is supplying the aircraft, (the charter), this is the way we have done it for years, and have never been stiffed. And that's in places, with airlines that are a lot less reliable than IE. (they do exist).

[Rudder]

So your saying that IATA interpose themselves between an Airline and an aircraft provider no matter what the commercial deal.

I can understand your point of Solomons selling a seat or any number of seats and strategic being member of the IATA dealing process and being paid for that seat.

I cannot understand IATA being a party or exposing themselves to what could be a non commercial/viable charter arrangement. It presents them to enormous risk.

I know some people at IATA, I'll see what I can find out and come back. There must be more to this type of transaction than is apparent.

Thanks for the info.

[THE-BOOB]

I most certainly didnt say that IATA would impose themselves, REGARDLESS of the commercial deal.

You seem quite wound up about this. Who cares, the only ones who are going to be hurt by it are OA and PB. Oooohhhh, I get it. Sorry.

[Rudder]

Wrong, The-Boob but it's always easy to take a cheap shot when you can't debate the issue further.

Like I thought you are now saying that IATA don't pay for charter flights direct to the charter operator. Logic says there is no way they get involved in individual transactions. They may pay for charter flights to the Airline that has sold the tickets and who Startegic operate on behalf on ie. Solomons. and wouldn't you love them holding your money for you.

Th only way for Strategic to get paid direct is if they are the operating Airline and Solomons are selling/buying tickets on them and that may be the case. Good on Strategic if that is the case but my comment on load factor risk applies.

At the end of the day I really couldn't care less as I don't fly for anyone who are in any way affected directly but it still doesn't add up.

Like I said, I will check with contacts in IATA and will happily say I was wrong.

You have a good day.

[MyNameIsIs]

Sumsum and his buddies at it again by the looks of things.
When will the people learn to not get conned over and over?

Beautiful place getting taken for all its worth by the wrong people.... shame.


lordofthewings - container loading, good point.
Bet that would be something Sumsum and his buddies havn't thought of! Wonder what would happen if the A320 shows up one day and it can't be unloaded!
Only marginally better than the E-170 and 732 leaving the bags in BNE..........

[chichibota]

IATA will be out of the picture shortly as IE will lose membership...gotta do IOSA to retain that.......perhaps Strategic will buy IE and take it over...could work if the current crew running the show are moved on. Paying bills and compliance not a high priority at IE...not even a low one.
So much for Sumsums deal with Airlines PNG.

[Animalclub]

lordofthewings - container loading, good point.
Bet that would be something Sumsum and his buddies havn't thought of! Wonder what would happen if the A320 shows up one day and it can't be unloaded!

Wouldn't be the first time that's happened! Bob Hawke diverted his B707 to Honiara to bring the Prime Minister of the day back from some conference. There were no steps/equipment at Henderson Field high enough to get the Prime Minister off with any dignity. Solair engineers came to the rescue with a hastily built piece of equipment which was finished just as the aircraft was landing.

[Jet Fixer]

Pardon my ignorance- how does IATA clearing house operate (what is it)?

Thanx

[Rudder]

Jet Fixer,

This is what is on the IATA Website.

IATA Clearing House (ICH) (http://www.iata.org/whatwedo/finance/clearing/ich.htm)

[THE-BOOB]

You dont have to pass IOSA audits to remain a member of IATA.

It simply reduces your expense by reducing the amount of auditing required on external suppliers.

[Pacific Tedybear]

Just one PAE
Scheduled freighter service that's been running for the past 15 odd years,
Rain hail or sunshine unlike other wannabes who claim to have been servicing the freight route ? :ok: