Is There A Way Out

Air Pacific Changes

Is There A Way Out Of The Maze?

Pacific civil aviation is in the midst of yet another period of crisis. In Fiji, Air Pacific,the national carrier, has been plunged into some turmoil by the sudden resignation of its chief executive and the appointment of an interim committee of management charged with the task of hauling the company out of its insolvency.

On the rim of that circle of activity sits Ansett executive, and veteran of many an airline crisis, Sir Lenox Hewitt, with fairly clear hopes of being helpful in Fiji, and of adding to the expanding presence in the Pacific of Ansett and its associates, Polynesian Airlines and Air Vanuatu.

In New Zealand, meanwhile, the snap election called by prime minister, Sir Robert Mul doon, threw Air New Zealand’s plans to buy three new aircraft into some doubt.

Air New Zealand needs the new airliners to run internatio nal services into Wellington, the national capital, and had hoped for Boeing 7675, or Airbuses from Europe. A recent, and somewhat surprising, deal with the E.E.C. to take a helpful tonnage of New Zealand butter, despite the huge mountain of it in French and other store houses in Europe, led to speculation that Airbus might now have the edge over the Boeings favored by airline ex ecutives.

As we went to press Sir Robert’s fortunes at the hus tings-looked a shade gloomy, matching the worried frowns of Air New Zealand executives.

But by far the most intriguing changes were in Fiji where, early in July, a meeting of the Air Pacific board of directors, held outside the company’s premises, came to the conclu sion that a major executive shake-up was required. Akuila Savu, appointed chief execu tive about four years ago, after establishing a good reputation in rather academic fields fairly much removed from the brutal ly competitive arenas of civil aviation, emerged from this gathering to announce that he had resigned.

Akuila did not explain the resignation, but conceded he had differences with the air

line’s chairman, John Hill, a tough and successful business man noted for his devotion to efficiency and the bottom line.

Hill was put into Air Pacific a couple of years ago to drag it out of its problems and in the chair has gained a reputation for decisive action and good leadership.

The differences between Akuila and Hill came to a head at the Fiji Tourism convention in the first week of July when Akuila apparently objected to his chairman’s instruction that he, Mr Hill, would speak on all matters touching Air Pacific.

Also at the convention, and very much an interested obser ver, was Sir Lenox Hewitt, keeping his powder dry, but, so it is widely-assumed, very much interested in offering Air Pacific a management deal, a share cropping operation, or anything else which might increase Ansett’s international opera tions.

Also near the ring was Air New Zealand which, a couple of months ago, offered to undertake a survey of Air Paci fic’s problems and come up with helpful ideas and hopefully, a solution. Air New Zealand’s chief executive, Nor man Geary, was to have visited Fiji for further discussions with John Hill, and Air Pacific execu tives, but cancelled because of the election at home and his own concerns arising from it.

In the wake of the Akuila departure John Hill announced appointment of a management

committee led by former chief pilot, Neil Ganley, who had been hired two months earlier as a consultant. His job then was to sort out declining op erational standards and to offer proposals on by then badly needed new aircraft.

Earlier in the year Air Pacific sold its two BAG 1-11 twin-jet airliners, or two-thirds of its jet fleet, because the offer was good and because they fore saw no problems in being able to buy a second Boeing 737. In the event, no suitable second hand Boeing could be found, nor did the world seem to have one for lease.

They were unable to finance purchase of a new 737 because of IMF strictures.

At the same time they sold two of their small, 18-seater Bandeirantes, one of them to Air Melanesiae and the offer to Australia.

With their fleet thus drama tically reduced they wet-leased a Fokker F 27 Friendship from Ansett Airlines to maintain the country’s vital Nadi-Suva- Labasa air link. International services were somewhat straitened, but helped out by Air New Zealand.

Meantime the new manage ment committee, made up of Ganley, Bill Nahroon, govern ment administrative expert, Peter Wyatt, the new chief engineer, Peter Hughes, and marketing director, Vince Malone (ex-Qantas) has been told to reassess Project Amer ica. This is the ambitious

chartering by Air Pacific of a DC-10, flown by flight crews from Western Airlines of the U.S.A. with Air Pacific cabin crew, running three times a week between Nadi and Hon olulu. Airline observers say it was a good idea, but not handled with sufficient profes sionalism by the relatively inex perienced Air Pacific. Western, they say, has done much better than necessary from the arrangement.

The whole affair reached its crunch-point at the Tourism Convention where, observers say, it became apparent that communication between Air Pacific’s management and its board lacked sufficient cosiness.

The board seemed to feel itself short of sufficient and essential information on such matters as aircraft types and availability, financing and leasing arrange ments, they said. This seems to have been made especially poignant because of the pre sence at the convention of Sir Lenox, making civil aviation landing rights, operations, equipment, and everything else of major interest.

Part of the problem is Air Pacific’s quite urgent need for new aircraft. The Ansett F 27 lease, which includes all flight and cabin crew, this being a condition of Ansett’s agreement with its employees, is costing a great deal.

Air Pacific is thought to need its own aircraft, with its own pilots and cabin staff, as quickly as possible, particularly for the domestic services.