By Staff Writer
There are still a lot of uncertainties left in getting an aircraft for Samoa despite the pressure on Government in the recent session of Parliament.
Government can talk all they want about getting an aircraft or not but the opposition leader Tuilaepa Sailele Malielegaoi, is certain of the fate for Samoa.
“No aircraft no drop in airfares,” he chanted.
Government appears more concerned about sorting out first the financial struggles of the national carrier Samoa Airways.
The Minister of Labour and Industry, Leatinuu Wayne Fong, spoke about an Interim Management Board set up to review fully the activities of the national carrier.
He emphasised 360 degrees in the review that will look into work allocations and financial uncertainties especially with company debts.
“The Board will review airline partnership to see if that is the better option or not and cheaper airfares – we want the company to run in a profit,” Leatinu’u vowed.
He is also keen to have the 2020-2022 accounts of Samoa Airways audited after the last audited accounts of 2019.
The Minister was in a chirpier tone after revealing savings of 90 per cent in repayments after negotiations with the aircraft company owners that would have otherwise cost $160m tala.
The negotiations ended officially on the 4 June 2022.
But opposition deputy leader, Fonotoe Lauofo, did not have much faith in the Minister’s hopes for a cheaper deal through partnership with other airlines.
‘We’ve been there before with Ansett, PolyBlue, Virgin and others and most of the time the money goes out to Airlines,” Fonotoe argued.
Opposition MP Tapunu’u Niko Lee Hang, a former Cabinet Minister, wanted any decision about getting an aircraft for Samoa speeded up for the many benefits that shows up in a cost benefit analysis of having one.
“It takes a long time for airline companies to make a profit, sometimes it takes up to 20 years for operation costs to break even.”
Opposition leader Tuilaepa agreed with his former Cabinet Minister that direct returns from airline investments are marginal but there is a bigger picture to look at rather than profit and loss.
He highlighted the spin off benefits of having an aircraft owned by the country that would worth billions when valued.
“The leading benefit is making it easier for people to travel and tourism related opportunities like hotel accommodations and others,” Tuilaepa said.
Travel between Auckland-Apia is described as a ‘captive market route’ prized by airlines for making good profits.
With Samoa Airways without an aircraft to fly the route, rival airline Air New Zealand is seen as taking full advantage by raising airfares.
“ The PM had talks with the Air New Zealand general manager on her recent trip and it has not stopped airfares from going up 20 per cent,” Tuilaepa said.
He estimates the return fares when all other travel expenses are added will be around $4,000 compared to normal airfares before of between $700-$800 for one person.
“Fiji Airways is offering to fly indirect from Auckland to Suva and then to Apia, but that is winding the clock back to where we were before and that is an embarrassment.”
Tuilaepa reflected on the vision his Government had for the lease of not one but two aircrafts for the national carrier to operate.
One would fly from New Zealand-Tonga-Apia and then to Hawaii while the other will fly Apia- Nadi – Brisbane.
“Unfortunately, all we’ve ended up with is not one or two aircraft but an ass.”
His main complaint is the Government is not using the right people with proper experience in the airline industry to give the right advice.
What he is most disappointed with is the new Government tunnel vision at having an aircraft for the national carrier to operate international travel on Samoan routes.
He maintained that Samoa managed to secure a very competitive lease with the aircraft that was returned.
While he is aware of Government is hopeful of getting a better deal if they do decide on an aircraft, it will be a struggle to get another lease deal as the one they cancelled.
“Again I repeat! No aircraft no drop in airfares.”