Amazing scenes as Qantas

wins Air Pacific battle-again

Fiji’s credibility as a straight-dealing nation has been brought into doubt by a last-mi nute government reversal of a gentleman’s agreement with the Australian airline Qantas.

It seemed that Qantas had already won the four-airline battle to run Fiji’s Air Pacific for the next three years, underwrite its $35 million total debt, and guarantee it wouldn’t lose any more.

On October 11, 1984, Prime Minister Ratu Sir Kamisese Mara accepted the Qantas pro posals against those of Ansett of Australia, Air New Zealand, and America’s Continental.

A month later, Cabinet changed its mind. It refused to sign anything unless Ansett was given another chance.

At this amazing revelation, chaos broke out. The deadline for proposals was long past, and Ansett’s claim that it had been treated unfairly was barely plausible.

And as the Air Pacific board obeyed instructions and studied the Ansett Plan Mark 11, Ansett jets began to zoom overseas laden with whisky, executives and Fiji parliamentarians, and Ansett executives wined and dined as many more as they could get hold of, none of which did anything for the reputation of Ansett, the par liamentarians concerned, or in fact the country itself.

Concern was expressed that the government had made Fiji look like a banana republic, and Deputy Opposition Leader, Mrs Irene Jai Narayan, voiced the opinion of many when she told parliament of her fears about the international image and credibility of Fiji.

The Air Pacific board even tually returned the same answer as before: Qantas was still the best.

So, on December 13, two

JULIE RICHARDSON in Suva backgrounds the remark able chain of events which finally saw the Australian airline Qantas confirmed in the position of interim manager of the affairs of Fiji’s airline, Air Pacific.

months after Qantas had first won the contract, it won it again.

The government’s myste rious decision favoring Ansett endeared it to no one but Ansett.

No one seems quite sure why it happened. One theory is that bad feeling still lingers among some Cabinet ministers from the troubled times when Qantas ran ground services at Nadi Airport.

Another is that political press ure may have been brought to bear through links between Ansett chief executive Sir Peter Abeles and Australian Prime Minister Bob Hawke, who re portedly discussed Ansett with Ratu Sir Kamisese in August.

Ratu Sir Kamisese is known to have favored Ansett.

One thing is certain; Air Paci fic board chairman lan Thom son felt strongly enough that the Qantas deal was best that he would have resigned had the government rejected it.

“I waited for the government to make its decision. It was the right decision,” he said. “We signed the agreements with Qantas on Tuesday (December 18). Everything’s set now for a quick return to profitability. I’m very happy about the way things are now.”

Another man who’s happy is Air Pacific’s acting chief execu tive Captain Neil Ganley. “The way I see it we’re still Air Pacific and we’re still running our own show, with Big Brother giving the little chap rather a lot of a helping hand.”

The question of whether this particular Big Brother is an Orwellian dictator ready to

dominate Air Pacific, or a chari table institution, or something in between, has been some what obscured by the recent chaos and has still to be answered.

But few who have witnessed the debacle of Air Pacific’s last few years could fail to be relieved that at last something is going to be done by someone who knows how to do it.

So what is Qantas getting out of this ostensible philanthropy?

“Not a hell of a lot,” said Ganley, “they’ve taken on a pretty difficult task.”

The Qantas task is to reverse a series of mismanagements and mistakes that culminated in the launch in 1983 of three flights to Honolulu each week in a leased DC 10.

Air Pacific bosses admit pri vately that Project America was a disaster. Only Lewis Carroll could have derived any satisfac tion from the crazy situation: at a time when the airline was already losing millions, it laun ched an international venture against giant competitors, guaranteed to lose money for its first two years.

Project America signalled dis aster, and as it spiralled down wards, its slipstream was filled with internal dogfights, resigna tions, rows and sackings.

By September 1 the whole board of 10 had resigned under pressure and been replaced.

Ratu Sir Kamisese organised meetings with Ansett and Qan tas, and the battle to become Air Pacific’s savior was on.

Ansett, which already ran Air Vanuatu and Western Samoa’s Polynesian Airlines, had high hopes of a takeover. Fiji’s

bilateral rights into Hawaii, continental USA, Canada, Japan, Singapore and Korea, as well as New Zealand and Australia, would not have come amiss in their bid to beat Qantas on the international circuit.

They first offered an on going contract that meant a virtual takeover. Their second offer added a guarantee of no financial loss to Air Pacific, as had Qantas.

But the extra punch that Qantas was able to pull was a near-guarantee to boost tour ism to Fiji from America. Even Ansett’s second proposal only offered to explore the possibility of doing so.

How will Qantas work its miracles? Said Ganley: “They’re looking at every prob lem. It’s possible the fleet may be changed drastically. They’ve said there’ll be no redundan cies, for the time being.

“If I looked into the crystal ball, I’d see Air Pacific firmly entrenched in the 747 opera tion into Sydney. It would have an important regional service and have a second 737.

“By setting the Sydney service it will generate tremendous revenue and profit.

This will be used to service the debts and loans we have.”

Ganley believes too that Air- Pacific will get back onto the American run, with the help of Qantas.

“Fiji doesn’t have the rights into Los Angeles now. Qantas has. We haven’t opened any doors for Qantas. They’re not riding on our backs: We’re riding on theirs.” Hopes in Air Pacific hearts now are that thumbing a lift will prove a swift flight into financial security.

Hopes in Fiji hearts are that the government will in future stand by its word, and redeem its hitherto untarnished reputa tion for honesty.