Fiji controls

Air Pacific

Fiji now controls Air Pacific. Her interest in the airline recently rose to 60.69 per cent when Nauru and British Airways declined to increase their shareholdings. The original Fiji interest was 22.74 per cent; this rose to a little more than 50 per cent when it took up shares which Qantas and Air New Zealand did not want.

Supplementary estimates recently tabled in the Fiji House of Repre sentatives showed that New Zealand, like Australia, would lend $681,000 to Fiji to buy more Air Pacific shares, at favourable rates of interest —nothing in the first three years, then three per cent, with the loan repayable over eight years.

The Finance Minister, Mr Charles Stinson, said an extra $2 million capital injected into the air line was a rescue operation. Fiji should have had a controlling inter est some years ago, but could not afford it. Air Pacific would retain its regional character, even though Fiji had the controlling interest. Fiji hoped other Islands governments would later add to their sharehold ings.

The Minister for Communications, Works and Tourism, Ratu Sir Penaia Ganilau, said Nauru did not want to increase its shareholding because it had its own national air line. British Airways did not want more shares because its policy was to avoid greater involvement in air lines like Air Pacific.

British Airways, Qantas and Air New Zealand have no regrets about Fiji becoming the major shareholder in Air Pacific. The British Airways attitude to such airlines has always been that it likes to see emerging countries taking a greater interest in their own airlines, and increasing their financial stake in them, a view probably shared by Qantas and Air New Zealand.

Through a recent issue of shares, Fiji gained a 60.69 per cent interest in Air Pacific, while the percentage holdings of other countries and air lines were watered down. There is no suggestion that Qantas will give up management of Air Pacific, but that question depends very much on how much management assistance Air Pacific requires.

There is an intensely nationalistic feeling in Fiji. While recognising it

will need foreign capital and know how for a long time yet, Fiji policies are directed strongly to localisation, often at the expense of efficiency.

Air Pacific is not the most popular airline operating in the Pacific. Often services are cancelled without noti fication, and local people say that staff morale is low. It is difficult to pinpoint the cause, but if it is mechanical, the airline could well be on the way to overcoming its prob lems as the four Trislanders, which are to replace the Herons, go into service.

Air Pacific laid off two of its four Herons early in January as they had reached the end of their useful life.

The Herons, in service for more than 15 years, are being replaced by Britten-Norman Trislanders.

The airline has one new Tris lander on the strength, but delivery of a second one, which was due in Fiji in December, has been post poned until March.

Britten-Norman’s production pro gramme in Britain has been upset through a shortage of raw materials.

Air Pacific will buy four Tris landers for $1 million including spares. One will go to the GEIC to replace a Heron which is operating there.

The Herons, which have a safety record second to none, have to go as the cost of completely overhaul ing them would be about $300,000; more than Air Pacific can afford.

They may be sold but probably are useful for spare parts only.

Their present value is estimated at between $20,000 to $25,000 each.

Another Air Pacific aircraft, one of its two BAG One-elevens, which has been on lease to Air Malawi in Africa because Air Pacific was un able to use it economically—due mainly to the shortage of Island airfields capable of taking the BAG One-eleven —may return to Fiji in February.

The Malawi lease may be ex tended. The initial lease was from last July 15 to December 15 but this was extended to February 15.

Air Pacific’s chairman. Captain Philip Howson, who is deputy general of Oantas, and Fiji-born Qantas pilot Captain Ken Nicholson have been made members of the ex clusive Guild of Air Pilots and Navi gators, a British organisation run on the lines of the old guilds.

Membership, which is coveted by Commonwealth pilots and navigat ors, confers on them the Freedom of the City of London, with the right to vote in the election of London’s Lord Mayor,