Mega-carriers likely

HINTS at the possible formation of a “mega-carrier” for Southwest Pacific by Fiji’s national airline Air Pacific, Austra lia’s Qantas and Air New Zealand were made in April by Australian travel magazine Travel Week.

The Fiji Hotel Association has reser vations about this union saying it would be disastrous for tourism viability be cause it would eliminate competition between the carriers and result in a rise in air fares.

However, Air Pacific’s chief executive, Andrew Drysdale, explains that some sort of South Pacific consortium could be formed between the airlines in the future to strengthen their position against the

huge northern hemisphere carriers.

“Throughout the world the process of deregulation of aviation was intended to create multiple numbers of carriers who could compete with each other for the benefit of the consumer,” Drysdale said.

“The result has been the demise of a lot of carriers and the emergence of mega-carriers who completely dominate aviation in the northern hemisphere.

“There’s been talk for many years now for the carriers in the Southwest Pacific

to consider to amalgamate in some form in a corporate effort.

“They still wouldn’t become mega carriers but at least they would be stronger than as individuals.

Drysdale said Air Pacific is of the view that commercial agreements should be reached and maintained by them, Qantas and Air New Zealand. He said the three airlines already had a number of agreements but there needed to be more work done.

“We must be very careful we don’t get forgotten in the rush to form some form of commercial alliances that we do

participate.

“This is not necessarily shareholding.

Shareholding is one way but not the only way and commercial alliances are prob ably easier to form, easier to modify as commercial pressures change.”

Drysdale said that while Air Pacific didn’t disagree with the concept of cross shareholding it felt that it would be quicker and more flexible to have commercial agreements between the airlinesl.