Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

pasifika air START UP

Old 29th Dec 2020, 05:39
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pasifika air START UP

New Zealand start up planning on flying WLG & CHC to RAR 3 times a week each.

Owner Mike Pero, is originally from RAR but has made a lot of money in New Zealand from real estate.

No direct competition.

Using cheap ex VA B738s, probably with ex VA crews.

Where can they go wrong ?

Interestingly, they changed name from Air Raro to above as quoted from ch-aviation website

"Pero added that the Cook Islands were always intended to be the start-up's maiden destination. However, he pointed out that the new branding reflects a broader Pacific outlook and no longer directly relates to the Cook Islands, hinting at more ambitious regional plans going forward.

Pasifika Air plans to lease all of its aircraft and will not engage in a price war but rather focus on "innovative" services, Pero claimed."
Where else would they fly with no nonstop competition ?

& more info from ch-aviation website

"The start-up started its certification drive on December 1, 2020, and hopes to receive an Air Operator's Certificate and an Operating Licence in time for a May 2021 launch. It plans to use B737-800s returned to lessors by Virgin Australia, which closed its New Zealand operations during the COVID-19 pandemic. The start-up also hopes to hire staff who previously worked for the Australian carrier."
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Old 29th Dec 2020, 06:50
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Well if it comes off (and I think it will) and creates employment then it's a great thing. It's no secret there are heaps of 737 Pilots and cabin crew available after being cast aside by Virgin. The name change is interesting.... Might be eyeing up some of the old Pac Blue routes. Good luck to Mr Pero, his timing may be spot on.
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Old 29th Dec 2020, 08:10
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“No direct competition”

I’d say as soon as a NZ-Cook Island bubble opens both AirNZ and Jetstar will be flying there from AKL, WLG and CHC.
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Old 29th Dec 2020, 09:51
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Originally Posted by Inverted Flat Spin View Post
“No direct competition”

I’d say as soon as a NZ-Cook Island bubble opens both AirNZ and Jetstar will be flying there from AKL, WLG and CHC.
And both will do their damndest to shaft any start-up bu undercutting

They will fill the aircraft during school holiday times and will struggle off peak.
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Old 29th Dec 2020, 12:38
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pasifika air START UP
What a bloody awful corny name. Looks more like German origin.
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Old 29th Dec 2020, 13:29
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Originally Posted by Inverted Flat Spin View Post
“No direct competition”

I’d say as soon as a NZ-Cook Island bubble opens both AirNZ and Jetstar will be flying there from AKL, WLG and CHC.
of those 3 cities only AKL has had nonstops before + Pero has roots/contacts in RAR & there are only so many beds. It's not the Gold Coast.
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Old 29th Dec 2020, 13:30
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Originally Posted by Centaurus View Post

What a bloody awful corny name. Looks more like German origin.
kiwis know what it means supposedly
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Old 29th Dec 2020, 21:00
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Isn’t this modern invention called Google a wonderful thing!

Pasifika (sometimes spelt Pasefika) is the term used to describe Pacific Island migrants to New Zealand from Sāmoa, Tonga, the Cook Islands, Niue, Tokelau, Tuvalu, and other smaller Pacific nations.

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Old 29th Dec 2020, 21:27
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Aren't these the same folks loosely referred to as 'Coconuts' before political correctness became a thing.....?
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Old 30th Dec 2020, 02:01
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I think he is potentially onto a winner here, AKL - RAR on the 320 is at the edge of the operating capability when a bit of weather is thrown in. CHC - RAR would be severely capped I would of thought. I wish him all the best, as always though if he is profitable then I would expect Air NZ to open on the same routes and crush him using 787. Pero was on the radio recently saying he is not targeting the low cost end of the market but a quality product (including business) for a competitive fare........
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Old 30th Dec 2020, 05:49
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Originally Posted by Ollie Onion View Post
I think he is potentially onto a winner here, AKL - RAR on the 320 is at the edge of the operating capability when a bit of weather is thrown in. CHC - RAR would be severely capped I would of thought. I wish him all the best, as always though if he is profitable then I would expect Air NZ to open on the same routes and crush him using 787. Pero was on the radio recently saying he is not targeting the low cost end of the market but a quality product (including business) for a competitive fare........

Might be the case for the A320, but the A320-Neo burns significantly less. Approx 1.9t an hour at heavy weights plus 180 EDTO means CHC - RAR won’t be a problem.
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Old 30th Dec 2020, 07:58
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Originally Posted by Slater View Post
Might be the case for the A320, but the A320-Neo burns significantly less. Approx 1.9t an hour at heavy weights plus 180 EDTO means CHC - RAR won’t be a problem.
Pero’s stated they’ll be using 737-800’s. How’s the fuel burn on those compared to a NEO?
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Old 30th Dec 2020, 09:19
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Yes, I was thinking more of Jetstar competing on these routes, which they can't with their current A320's. Air NZ have more options to be able to do their usual crushing of any opposition.
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Old 30th Dec 2020, 10:18
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Originally Posted by packapoo View Post
Aren't these the same folks loosely referred to as 'Coconuts' before political correctness became a thing.....?
haven't heard that term since i left kiwi. Pero has deeper pockets than the average entrepreneur and being part 'coconut' will be to his advantage with the rest of the 'coconuts'. Give him credit for having a go with a value add model rather than lowest cost. When someone has a go, opportunities for all eventuate. He should adopt the Pacific Forum Line shipping model and get respective governments to underwrite the venture in the best interests of trade and tourism. I wish him well.
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Old 30th Dec 2020, 18:10
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People here have short memories.

AirNZ used to operate NZ240/NZ241 as a CHC-RAR flight during 2009 to 2011 with an A320, I believe it was also seasonal.

As it only operated for a few years, it may give an indication of how viable the service was vs directing everyone through Auckland with its larger Pacific Population.

Air Pacific/Fiji Airways have been long term flying CHC-NAN, however it has fluctuated between once a week, to twice a week, to seasonal.

South Islanders and trips to the Pacific tend to vary a lot as it is always going to be easier (and cheaper) to get to the Gold Coast than going to the Islands.

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Old 30th Dec 2020, 20:52
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The problem with niche routes/airlines is that they are typically under-capitalised and generally won't stump up for spare aircraft. After a few tech delays the punters get fed up and take their business elsewhere. Also if the routes are profitable then it would be naive to think that Air NZ and others will just sit back and not compete.
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Old 30th Dec 2020, 23:33
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Originally Posted by MCDU2 View Post
The problem with niche routes/airlines is that they are typically under-capitalised and generally won't stump up for spare aircraft. After a few tech delays the punters get fed up and take their business elsewhere. Also if the routes are profitable then it would be naive to think that Air NZ and others will just sit back and not compete.
Pero might get allocations of accommodation. Not much use flying to RAR with another airline, if you can't get accommodation. Will they even let tourists in without accommodation booked ?

They don't want surfers sleeping on beaches.

Also it's not like a SYD/MEL route.

The outbound market from RAR must be tiny.

Had a very quick look at what JQ & NZ are offering right now AKL/RAR in May/June.

It seems JQ have some reasonable fares but timings suck. 0100 arrivals in RAR with 0200 departures on days I saw.

NZ only seemed to be showing business class fares on just under NZD$1000 one way.

Imagine new airline will be offering airfare & accommodation packages & don't forget Aitutaki (spelling). It's high end & anyone living near CHC & WLG with $$$ does not want to fly via awful AKL.

Think of all those overpaid public servants living in WLG. If like Australia, public servants can't get or use frequent flyer points, when flying for work.

AKL is set up as badly as SYD. Changing terminals is a time consuming pain in the arse at both.

The big questions are:-

1) Will they start with 1 or 2 aircraft ? Different news stories don't agree on this.

Perhaps, with so many 1000s of aircraft parked, they can get a deal with aircraft owners, that they lease one & have a back up aircraft, initially paid for by the hour. Think about it. Many aircraft owners are going to be waiting a long time for their fleet to be fully utilised. 2, 3 or 4 years maybe ?

There must be some weird & wonderful leasing deals happening right now.

2) where else could they fly to ? Other Pacific nations ? Samoa ? Tonga ?

Imagine in school holidays & especially Xmas, they'd be flying 25 hours a day/8 days a week & making $$$.

Pent up demand is huge.

Obviously not Fiji, assuming Fiji airways will resume their nonstops WLG & CHC/NAN.

or could they fly from somewhere in Australia one stop (at WLG or CHC) to RAR ?

What about MCY ?

NZ does or did seasonal flights AKL/MCY in winter & think it got up to 3 or 4 per week.

They could get 2 way demand. Kiwis going to MCY & also Kiwis in OZ & Australians going to RAR & WLG or CHC.

Last edited by Kickstarter; 31st Dec 2020 at 00:08.
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Old 4th Jan 2021, 23:02
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latest ......

on stuff NZ website

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.

.........

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.”




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Old 5th Jan 2021, 10:05
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Originally Posted by getaway View Post
latest ......

on stuff NZ website

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.
You forgot to change back to your Kickstarter persona to file that update.
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