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No AOC for Skyairworld, delay for Solomon Airlines

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Old 13th Aug 2007, 09:18
  #181 (permalink)  
 
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Noted parked at the Old ITB Brisbane for the last few days. Is this the end of the operation of the E170 to Solomons.
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Old 13th Aug 2007, 09:34
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Looks like it.
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Old 14th Aug 2007, 00:07
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Colleagues arrived on the Our Airline 737, were told by the crew that OA would also be operating a service the next day as well. Seems to fit in with the word around Honiara that the E170 won't be seen out here for a while yet.
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Old 14th Aug 2007, 05:59
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There seems to be whisper that solair has lost their jet due to lack of payment, can anyone confirm.
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Old 14th Aug 2007, 07:21
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Embraer gone?

Solomon Star)

Solomon Airlines international flights remained suspended yesterday because the financially-struggling airline has not met lease payments for its Embraer 170 jet, the Solomon Star reported.
- ADVERTISEMENT -

The newspaper said the Australian company the plane is leased from, SkyAirWorld, grounded the plane in Brisbane on Friday.

It said Solomon Airlines has to pay up before flights can resume.
The plane is the airline's only international jet. Its loss forced the cancellation of Brisbane-Honiara-Brisbane and Honiara-Nadi (Fiji)-Honiara flights.

The new chairman of the Solomon Airlines board, Central Bank Governor Rick Hou, did not return telephone messages left for him in an attempt to get comment.

Hou was appointed to head a new-look board brought in to try and solve the Government-owned airline’s continuing financial problems.

Airline chief executive Ron Sumsum, when contacted, said a written statement would be issued. But this had not yet been received, the Solomon Star said.
From Brisbane SkyAirWorld chief executive David Charlton confirmed that the company has stopped use of the E-170.

“We are suspending flights until payments are made,” Charlton said.

Charlton said as soon as the payments are made, Solomon Airlines can resume its flights.

He could not reveal how much Solomon Airlines owes them. But it is believed to be a substantial amount.

Charlton also revealed that this is the second time that the company had suspended services because of non-payment of lease fees.

Earlier, when services were suspended, Solomon Airlines said that the plane had encountered technical problems.

Passengers stranded in Fiji on Saturday are believed to have been brought to Honiara on an Air Niugini flight.

The Solomon Star reported this week that the Government has paid $22 million to support Solomon Airlines since it leased the E-170 this year. The Brazilian-built jet replaced a Boeing 737-300 the airline had previously leased for its international flights.

The airline’s financial woes came to light in June when staff salaries were paid three days late.

There have been constant capacity problems with the E-170, with luggage, freight and passengers offloaded because of weight limitations.

Meanwhile, there are reports a team from Air Vanuatu is coming to Honiara this week to discuss the launch of a Honiara-Port Vila-Brisbane and return service.

Air Vanuatu general manager Terry Kerr confirmed they were planning to fly a Honiara-Port Vila route some time later in the year.

Air Vanuatu plans to start operating a 185-seat Boeing 737-800 from January, replacing its present 135-seat Boeing 737-300.

Asked if Air Vanuatu would lease a 76-seat E-170 aircraft, Mr Kerr said “absolutely not”.

He said Air Vanuatu has opted to go the larger Boeing 737-800 as passenger numbers in the region are continually increasing.

“We felt to go to a smaller aircraft would not make any sense at all apart from obvious operating limitations that EMB 170 would have on our routes such as weight limitations,” he said.
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Old 14th Aug 2007, 10:49
  #186 (permalink)  
 
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From the SMH, Ozjet stepping in to fill the gap:

Solomon Airlines pulls jet from route
August 14, 2007 - 3:59PM

The financially-troubled Solomon Airlines has had a jet pulled from its Brisbane to Honiara route after failing to meet lease payments to a Queensland air charter company.
But a rival Victorian company looks ready to step in to fill the gap.
Solomon Airlines provides the main air link between the Solomons and Australia, flying seven times a week between Brisbane and Honiara.
But use of the Brazilian-made Embraer 170 jet on the route was suspended on Friday by Brisbane-based SkyAirWorld because of overdue lease payments.
SkyAirWorld's chief executive officer David Charlton said Solomon Airlines had indicated it hoped to have everything back on track and the plane back in service soon.
Charlton said suspension of flights due to non-payment of lease fees had happened once before since his company started flying for Solomon Airlines on May 20.
"But I see this as a hiccup, not a major issue," Charlton said.
However, Solomon Airlines has turned to another Australian air charter company, Melbourne-based OzJet, to fly the route, at least in the interim.
An OzJet Boeing 737-200 flew the route on Saturday and on Tuesday.
OzJet's chief executive officer Willie O'Neill said his company was in discussions with Solomon Airlines to "rebuild their schedule".
He said SkyAirWorld had contracted to use a 76-seat aircraft but it could only carry 55 passengers on the route and this was not returning enough money for Solomon Airlines.
"The aircraft was inappropriate. We will be in discussions with Solomon Airlines to hopefully address the shortfall," O'Neill said.
In a bid to turn around the fortunes of Solomon Airlines, the Solomons government recently appointed a new board, headed by Solomons Central Bank Governor Rick Hou.
He and airline executives were in a meeting and could not be contacted.
The Solomons government has pumped millions of Solomon dollars into the airline since it leased the Embraer in an effort to help resolve the carrier's troubles.
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Old 14th Aug 2007, 15:59
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The 737-300 and -400 were perfect for the BNEHIR run.

The -200, hardly. Air Nauru did that for a couple of decades using NOU to be able to maximise loads. Very expensive if loads not there.

The Solomon's may do what the Norfolk Islanders did and opt for OzJet to do their service. The Norfolks lost out big time on that one in more ways than one with OzJet being the only winner, and only just.

A deal with the Vanuatuans can't be at all efficient for the Solomon Islanders. How can you possibly not get penalised in seat/mile costs if you have to fly from HIR to BNE via Vila? The paying Solomon's public will grimace at that thought. Wantok to wantok relations (Melanesian Spearhead group) should not come at a penalty for one party and benefit to the other.

The solution comes back to what we've hammered again and again. Partnership with the Nauruans. Is this solution to be avoided at all cost? If so, why? And how could that be rectified?
A few simple probing questions may go a long way in solving this dilema.
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Old 14th Aug 2007, 23:01
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Been doing some more research given that Ozjet have been operating a couple of charters for Solomons Airlines (as have OUR Airline, as a matter of interest) and seeing
OzJet's chief executive officer Willie O'Neill said his company was in discussions with Solomon Airlines to "rebuild their schedule".
Sal-E has it in one, the 737-200 isn't the best replacement for the E-170. It certainly offers some improvement in payload by about 2 - 2.5 tonnes which only brings the loads up to around what they thought the E-170 was going to carry but at greater cost overall. Still leaves no real scope for expansion other than increases in frequency - expensive!! IE really need to look at the situation and, whilst national pride is very important, it needs to be cast aside in the interests of the best possible outcome for the Solomonese, particularly, and the passengers, generally. The wrong decision will see ticket prices higher than they need be - ask the passengers travelling to/from Tarawa and Nandi, fares about double what they were when Air Nauru operated. It's time some sort of alliance developed between interested (island nation) parties that would bring results (profits) to those parties. Engaging the services of yet another external operator along the lines of the deal with the E-170 will only bring about similar results as have just emerged. It's merely changing horses midstream if they do that - simple. Incidentally, did IE conduct "due diligence" when they were assessing the contract/payload/viability etc? It would appear it wasn't too thorough. They now have the chance to finally get it right - hope the chance isn't wasted.
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Old 15th Aug 2007, 08:37
  #189 (permalink)  
 
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Out of the frying pan and into the fire using the B737-200. Where is SumSum?
He seems to have gone very quiet since the E-170 has been grounded. Very different to the guy bragging about how his decision to get the E-170 was to be the savior for the airline in their inflight magazine. He bragged about his vision and bagged other airlines in the Pacific. Solomons would be doing well if they could make as much from their services as he and selected others make in their paypackets each month. When will the Nations of the Pacific use each other and keep money in their region instead of sending it offshore to others such as SkyAirWorld and Ozjet.

The solution is so easy and obvious but becomes so hard because of so called National pride. GET TOGETHER WITH OUR AIRLINE AND MAYBE BUY ANOTHER B737-300 AND PROVIDE A CHEAP,VIABLE,SAFE AND LOCALLY OWNED AIRLINE FOR THE REGION BY THE REGION .
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Old 15th Aug 2007, 23:07
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c'mon kosrae, solomons, kiribati, marshalls, tuvalu, nauru, ponape, anyone else? you all deserve a regional airline that works for all of you and that keeps the jobs and monies home.
I agree brassplate but can you imagine the s**t fight that would go on in appointing any sort of management or forming a route structure.

I've always found it almost impossible for the island nations (as much as I love 'em) to agree on inter island matters - but when there is trouble or donations available from outside the region, that's when they do offer a united front.

As one High Commissioner put it to me "there's plenty of guilt money out there - especially from Europe" and that may be the answer. Get the EU to sponsor an airline which would suit the island nations as a group.
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Old 15th Aug 2007, 23:27
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As a long time (and suffering) traveller to the Solomons and being familiar with the way things go in this part of the world, it comes as no surprise the circumstances surrounding Solomon Airlines and their venture into the big league. They only had to look around and see the results of the past when small nations try to go it alone with international operations. Unless you've got a pretty decent tourist base to underpin an operation (e.g. Vanuatu, Fiji) then you are always going to have difficulty with the "bottom line". Nauru, although it seems to be managing with Our Airline, has had its troubles in the past so no-one is immune.

From my perspective and experience out here, and if I was managing the airline, I'd need to see it undergo the drastic sort of overhaul that Our Airline went through. I speak with the crews there regulalry (wouldn't travel any other way to Honiara now) and they tell me of significant job cuts over their network, salary cuts, changing suppliers for better prices/value (meals), dual jobs (the hosties clean the aeroplane on turnarounds, pilots doing other duties in addition to flying) etc etc. It would appear only because management has bitten the bullet that they are surviving. This is exactly what Solomon Airlines needs and they would be well served to take on a similar model, better still as previous posters suggest, they could do very well by joining forces with Nauru and making it an airline "for the region by the region". (nice concept, Capt. Moonlight)

If I was a manager with the current Solomon Airlines I'd be very concerned with the apparent vested interests of a certain few who are (desperately, by now) trying to protect their positions and handsome salaries - salaries that are seemingly over and above the industry standard for what they do. It is these few that are blocking the proper resolution of Solomon Airline's problems and until they are taken out of positions of influence then nothing of significance will ensue. Obviously they have the ear/s of politicians but I often wonder about the quality of the advice these pollies are getting.
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Old 16th Aug 2007, 02:40
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The only answer in the Pacific is to take the airlines out of the hands of the politicians who want free flights, take the seats of paying customers and want positions on boards (air vanuatu classic case 30 odd people on a two plane airline board). APNG is going from strength to strength, they own all their aircraft(no loss due to no payment)except the 737 but how long till they do?. They have no obligation to employ wantoks, maybe they would be the best to take this route. I doubt that air van will come to the rescue seeing that sumsum and kerr are not on the best of terms (personal reasons).
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Old 16th Aug 2007, 07:04
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So does anyone know what is going to happen with SAW now???
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Old 16th Aug 2007, 15:13
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I think they should cut the fat (as the Nauruans painfully have), leaving only the very best of each field, and join the Nauruans on 'Our Airline' (whoever thought of that name is a wise man, very proud yet unbiased) as an equal share holder.
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Old 16th Aug 2007, 19:55
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More SolAir

Solomon Star headlines" Airline back in the air with another jet"......

This sounds very familiar........Breach Air Vanuatu contract for the Spanish 737,Spanish 737 for the E-170 and now......Airlines back in the air with another jet!! only after signing a 3 year lease agrement 3 months ago with SAW.....this Sumsum fellow and the key players of management need to go.......hope the new board members can see this.
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Old 17th Aug 2007, 02:52
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"Broke" Solair loses a plane- "Solomon star"- 14 Aug 2007

SOLOMON Airlines international flights remained suspended yesterday because the financially-struggling airline had not met lease payments for its Embraer 170 jet..........
The regional news magazine Islands Business reported this month that the Government has paid $22 million to support Solomon Airlines since it leased the E-170 this year.
Solomon Airlines is in deep trouble.

The Islands Business report said the $22 million of Government funding went to:
meet the lease and associated costs of the E-170;
l pay staff salary increases of up to 14 per cent;
l and for the hiring of executives lured from Air Vanuatu.
Islands Business reported the airline’s financial woes came to light in June when staff salaries were paid three days late.
Islands Business said there are constant capacity problems with the E-170, with luggage, freight and passengers offloaded.
.........................
Meanwhile, there are reports a team from Air Vanuatu is coming to Honiara this week to discuss the launch of a Honiara-Port Vila-Brisbane and return service.
Air Vanuatu general manager Terry Kerr confirmed they were planning to fly a Honiara-Port Vila route some time later in the year.
Air Vanuatu plans to start operating a 185-seat Boeing 737-800 from January, replacing its present 135-seat Boeing 737-300.
Asked if Air Vanuatu would lease a 76-seat E-170 aircraft, Mr Kerr said “absolutely not”.
He said Air Vanuatu has opted to go for the larger Boeing 737-800 as passenger numbers in the region are continually increasing.
“We felt to go to a smaller aircraft would not make any sense at all apart from obvious operating limitations that EMB 170 would have on our routes such as weight limitations,” he said.
...............

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Old 17th Aug 2007, 12:20
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I think that anyone who knows Kerr and Sumsum would know that it is very unlikely that they would meet.
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Old 18th Aug 2007, 00:13
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The reality here is that Mr Sumsum will not be the one determining whom meets whom. There is a general feeling that the sooner Mr Sumsum has nothing to do with Solomon Airlines, the better. The matter is now with the government and the board are effectively not functioning except as directed. The governement is going to decide the course of matters henceforth. The only concern now is that they get it right.
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Old 18th Aug 2007, 03:19
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Another Article in the Solomon Star.

Airline back in air with another jet


Airline back in air with another jet

Submitted by drupal on 15 August, 2007 - 12:15pm. Headlines By ROBERT L. IROGA
SOLOMON Airlines was yesterday back flying international services using a Boeing 737-200 operated by Australian charter airline OzJet.
But the Government-owned airline now faces possible legal action over its failure to pay for the Embraer 170 jet leased from another Australian airline, SkyAirWorld.
SkyAirWorld said it is continuing to charge Solomon Airlines for the E-170 jet now sitting on the ground in Brisbane.
SkyAirWorld grounded the 76-seat E-170 on Friday, saying Solomon Airlines failed to make payments for leasing it.
This stopped Solomon Airlines operating international flights Brisbane-Honiara-Brisbane and Honiara-Nadi (Fiji)-Honiara.
Solomon Airlines now switching to an OzJet plane has angered SkyAirWorld.
It says the Solomon Airlines agreement to lease the E-170, which began in May, is for a minimum of three years.
SkyAirWorld chief executive David Charlton told the Solomon Star last night that he was not told about the changes Solomon Airlines made.
“I contacted them every day but they never respond,” he said in reference to Solomon Airlines’ management.
Mr Charlton said since the grounding of the E-170 on Friday they have continued to charge Solomon Airlines.
They will continue to do so for the next three years if Solomon Airlines breaches the agreement, he said.
He did not rule out legal action, saying SkyAirWorld will look at all possible options.
Mr Charlton has declined to say how much Solomon Airlines owes it. But it is believed to be substantial.
It has also emerged this was the second time SkyAirWorld had grounded the E-170 because Solomon Airlines had not paid lease fees. The previous grounding Solomon Airlines blamed on a technical problem.
Finance Minister Gordon Darcy Lilo told the Solomon Star yesterday that Solomon Airlines has now entered an arrangement with OzJet to provide a 110-seat Boeing 737-200.
Mr Lilo also confirmed Solomon Airlines is in deep financial trouble.
He described its financial status as “bleeding”.
But the minister is confident that with the powerful new board he has appointed the airline can be revived.
The new board is headed by Central Bank Governor Rick Hou and includes former governor Tony Hughes and former Solomon Airlines chief executive Gidoen Zoleveke Junior.
Mr Lilo said one of the factors being looked at is the rights Nauru’s Our Airline has to operate Brisbane-Honiara-Brisbane in competition with Solomon Airlines.
Our Airline uses its 130-seat Boeing 737-300 on the route, as part of a service that also goes to Nauru and Tarawa (Kiribati).

Maybe the options David Charlton is talking about is getting an ABC reporter to do another 730 report. Oh hang on he has already done that on another company hasn't he . Just love that blackened out segment but eyebrows never lie do they??????

It must be expensive having an aircraft on the ground and not doing any work, keep invoicing the ATO will love you for that.
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Old 18th Aug 2007, 07:06
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I note in the media that all the talk is of rescue by Air Van or Ozjet however it appears to be Our Airline doing most of the flights.
Talking to the aircrew on OA they tell me they have done 3 or 4 times more flying then any other airlines who are supposedly assisting. Also unlike others they are only charging discount rates for the flights and are not trying to take advantage of Solair's bad times.What more needs to be done to show which is the best way to go. FOR THE REGION BY THE REGION Anyhow that's what I think !!!!!!!
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