Continental assured support

Continental Airlines will continue as the national carrier for the US Trust Territory under an amended franchise.

The new agreement will remain in force till August 2, 1978, after which it will be automatically renewed for four additional periods of five years each. Either side may end the agree ment at six months’ notice.

With a virtual assurance of of ficial support for 25 years, Continen tal is in a happy position for forward planning. The TT Government is obliged to “assist and support” Con tinental in efforts to operate to other countries from the Trust Territory.

The immediate significance of this provision is that Continental is one of three airlines seeking rights between Saipan and Japan. But a TT Govern ment spokesman refused to confirm or deny the agreement had the effect of putting the government on record in support of Continental’s bid.

The agreement takes away Con tinental’s tax free status. In return, the government has freed the airline from carrying civil servants on official busi ness at a discount. The airline was wil ling to continue offering the discount, provided the Civil Aeronautics Board agreed. However, the government felt the benefit to the territory through Continental’s new liability to the gross business receipts tax would more than offset the loss of the discontinued fares.

Continental is not now obliged to build six hotels, one in each district as under the old agreement, it more than met its obligations in providing hotel rooms. It built hotels in Truk and Palau districts and is building one in Saipan. It has spent more money and provided more rooms in these hotels than it was required to provide in the six hotels. The Mar shalls, Ponape and Yap districts will not now have Continental-owned hotels.

But the airline has agreed to train Micronesian management staff for any Micronesian-owned hotel.

The agreement records that the airline has exceeded the minimum level of scheduled air services re quired and that it has spent more than the required 6 per cent of pass enger revenue on tourism promo tion.

Shipping Additions

Sofrana-Unilines has bought a ship from Japan for the Australia-Pacific Islands trade. The ship, to be named Capitaine La Perouse, is being re

fitted, and will arrive in Australia about the end of November.

Meanwhile, two ships, the Jette Bue and the Gamma, which Sofrana had under charter, have been returned to their Danish owners.

The schedules for two Sofrana ships servicing Fiji from Australia have been slightly altered. The Cap tain Cook now leaves Melbourne every 28 days, and the Captain Bou gainville leaves Sydney every 28 days.

Two new ships in the Bank Line will be used to replace some of the smaller tramps used to carry copra and coconut oil from the Pacific Islands to Europe. These ships, the Corabank and Meadowbank, each 15,240 tonnes (15,000 tons), are the first of 10 new multi-purpose ships for the Bank Line world-wide tramp services.

Each ship is able to load 252 6.096 metre (20 ft) containers.

Pal Is Now

On Its Own

Tonga, Western Samoa and Fiji have decided to release Air Pacific from its responsibility to manage Polynesian Air Lines, provided there is a firm arrangement for regular con sultation between the two airlines.

Ministers from the three countries, responsible for air matters, decided this at a recent meeting in Nukualofa.

The ministers discussed a paper

from President Hammer Deßoburt, of Nauru, about Nauru’s partici pation in Air Pacific. They agreed to defer a decision about Nauru to a meeting, to be held soon, of minis ters from the UK, Australia and New Zealand, as well as the island coun tries. The ministers also deferred a request from President Deßoburt for a refund of Nauru’s capital sub scription in Air Pacific.

Tonga's Ships

In The Red

Tonga’s Pacific Navigation Com pany had an audited loss of 172,590 from May 8, 1972 to June 30, 1973.

Some ships showed a profit. The act ing Finance Minister, Dr Sione Tapa, in reply to questions in Parliament, gave details as follows for each ship.

Loss —Tauloto I (from May 8, 1972, to March, 1973), $94,430; Hifofua, $22,470; Pakeina, $31,760; Fonualei, $3,960; Fangailifuka, $430.

Profit —Tauloto II (December, 1972 to June, 1973), $28,530; 01ovaha, $15,550; Niuvakai, $14,300; Aoniu, $8,060; Ulufonua, $4,620.

As part of a long-range plan for a regional shipping service, Tonga has swapped the agency in Australia for the Pacific Navigation Company from Burns Philp to Karlander (Australia) Pty Ltd.

According to Burns Philp, Tonga made the change as the result of a study by members of the South Paci fic Forum of plans for a regional shipping service. The plans drawn up an Australian adviser specifically named Karlander (see p 79).