makes big plans

Niue Airlines makes big plans

THE latest player to enter the South Pacific aviation scene Niue Air lines Ltd is starting small but has big plans for the future. This, the owners hope, will take them from chartering a 737-200 jet from Solomons Airlines to run the current fortnightly Auckland-Niue ser vice, to owning their aircraft and using the small island as a hub for operations to Fiji, Samoa, New Zealand, Tonga, Cook Islands and perhaps even Hawaii.

Niue Airlines ran its inaugural flight on July 9, and its main problem since then has been a dispute between major share holders. That has now been resolved by one partner withdrawing. The company is now controlled by Auckland business man Ray Young, and he plans to divest about 45 per cent of the company to Niuean nationals who want to invest in the operation. Most of the traffic in the airline’s initial phase will come from nationals travelling between the island and New Zealand there are only 2000 people on the island, but 12,000 Niuean nationals live in New Zealand.

Young said a weekly service was the initial plan, “but Cyclone Ofa last February damaged Hotel Niue and wrecked crops which were to have pro vided much outward freight. This meant that only a fortnightly service was prac ticable.

Weekly services are due to begin this month. Young said the existing flights were breaking even, largely due to freight carried to the island for Government agencies and private companies. Freight is also being boosted by the propensity of Niueans to take great amounts of excess baggage when they travel, sometimes 100 kg above the allowance. That has helped to produce significant additional revenue for the airline.

Young told Pacific Islands Monthly that Niue Airline’s booking office in Auckland had been turning away tourists wanting to travel to the island, which augured well for business when the hotel re-opens next

February.

The company is already looking to the future, and the Niuean Government is seeking bilateral rights with other South Pacific states. Young said the first priority was Tonga, and he hoped Niue Airlines

could get fifth freedom rights between Nuku’alofa and Auckland. Flights out of Niue to Nadi, Pago Pago, Apia and Rarotonga were also on the forward plan, with even Honolulu via Christmas Island

a possibility.

Under its co-operation agreement with Solomon Airlines, the Niue carrier is committed to developing its route net work using the Solomons 737. There is some spare capacity with that aircraft, but there will come a time either because Solomon Airlines expands its own services, or Niue Airlines grows when there will be the need for another jet. If the Solomons carrier cannot provide the 737, the agreement allows that Niue Airlines can make other ar rangements.

Young stresses that his company has strong links with the Honiara-based operation, but in the long term the plans for his airline include owning an aircraft.

In the shorter term, he is looking to develop inflight catering on Niue for the Auckland service to give farmers and fishermen a useful new source of income.

In the meantime, work is proceeding on night lighting equipment at Niue’s Hanan Airport. The equipment, costing U 5533,000, will allow more schedule flexibility. In the past, the limiting of the airport to daylight-only landing has been blamed for the problems in attracting air services. □