Continental slashes routes
p. 27 · Read in the full issue
Sydney, Auckland trips likely to end
CONTINENTAL Airlines will next month join the exodus of and Canadian carriers out of the South Pacific.
It began scaling down operations in the region nearly five years ago when it
withdrew out of Fiji blaming declining
traffic and political instability there that year.
In its latest move, Continental will slash operations from June at two of the busiest and most viable South Pacific destination ports - Sydney and Auck land.
American Airlines pulled out of Syd ney and Auckland early March (this year) because of low yields, slow passen ger growth and a deep recession sweep ing major economies in the Pacific Rim.
The two American carriers are now re directing focus to Europe, Asia and Latin America.
Continental however still flics to Micronesia chiefly to Guam and Saipan, apart from Hawaii.
Canadian Airlines also began reducing operations in the region last year after pulling out of Fiji. It stopped flying into Fiji but went into a seat-sharing agree ment on Qantas and Air New Zealand flights to Vancouver via Honolulu.
Northwest Airlines however which has
been engaged in aa price war with United Airlines remain optimistic about their presence in principal Pacific routes covering Australia, New Zealand, Ha waii, American Samoa and possibly later
Fiji.
“One can only assume that Continen tal found it difficult to achieve satisfac tory loads and yields, but we’re profit able and running several million dollars ahead of budget since we started on this route (between the U.S and Australia) in July,” said Northwest spokesman in Australia, John Fordham.
He said the routes linking Australia, New Zealand and the South Pacific to America is very price sensitive.
Air New Zealand and Qantas are main carriers on the routes, from New Zealand or Australia to Fiji and French Polynesia before Los Angeles. Honolulu is also used as a Pacific stopover to Los
Angeles.
For the Pacific islands to increase their intake of American and Canadian tour ists, they need to win confidence of American airlines.
Air Pacific which some years ago bady flopped in it’s launch into the United States losing millions has plans to re enter the competitive American market.