Domestic deal sought for Air Vanuatu

VANUATU S government is moving to take control of the two internal private airlines, Air Melanesie and Dovair, and may incorporate them in Air Vanuatu. Details of the proposal are sketchy and even the two airlines are still in the dark about what the government intends. A brief press release was made by the government and broadcast on Radio Vanuatu, but attempts to contact officials of the Civil Aviation Department have been unsuccessful, and the airlines involved have not been contacted directly by the dep a rtment.

Air Melanesia is owned by Australian businessman Dennis Buchanan, who also operates Talair in Papua New Guinea, Air Melanesie has seven aircraft ranging from the 20 seater Bandierante and 1 win Otters to nine-seater Islanders. It Hies to 27 destinations around the arc upe ago. 1 he airline was founded 28 years ago, and was taken over by Buchanan m 1980. It also operates charter

flights to other South Pacific territories, including New Caledonia and Fiji.

Dovair is a more recent arrival on the Vanuatu aviation scene, and its sharehol ders include Vietnamese businessman Dinh Van Than who is now naturalised as a Vanuatu citizen. Dovair has four aircraft, one Bandierante, two Islanders and a 10-seater Beech Excalibur. The airline is run by Sunflower Airlines Ltd which is based in Nadi. Sunflower’s man aging director Don Collingwood told Pacific Islands Monthly that incorpora tion of the two domestic companies with in Air Vanuatu (which operates two days a week with a Boeing 727 to Australia and plans to fly to Auckland later this year) would make sense and result in natural cost savings. Than has indicated that he is prepared to sell his interest in the airline.

However, Buchanan is less enthusiastic to quit Vanuatu aviation. He said his company would sell “if the price is right” but did not see any advantage in the

government acquiring the two small air lines, Observers see one major flaw m the g overnments proposal: taking over both domest,c operators would eliminate corn pet,Uon ? n ,nternal services, and thus reVCrSe ‘ h . e * m P r °vement m airline ser v,ces j wh,ch occurred when Dovair S A tarted “ P as a nval t 0 A,r Melanesi <;- Apart from havin S to come up Wlth c ° m P ensatlon for the existing owners, Vanuatu government would be left w . lth f wo a, ™ nes whl^ h make onl y mar ?/ nal P , rofltS at . th f moment - Alr Vanuatu J s international services are not Y et producing major returns so it is hard to ,. see the fmanc,al ** nefltB of natlonallsatlon move, Radio Vanuatu reported Cabinet has told the Civil Aviation Department to prepare a detailed study of the airline takeover proposal. The government will

shortly begin negotiations to secure fi

nance for the deal. □