joint venture

Business Bulletin

Talair

grounded

PAPUA New Guinea’s biggest domestic airline, Talair, ceased operations at the end of May as a result of heavy losses incurred since December last year, re sulting in its fleet of 23 planes being grounded and 400 employees being laid off.

And PNG Prime Minister Paias Wingti has given an undertaking his government would consider buying out the airline. Following a meeting with three Eastern Highland leaders in late May Wingti undertook to speak to Transport Minister Roy Yaki on the buying out of Talair. And member of parliament for Garoka, Mathias Ijape, has said people in the Eatsern Highlands want the rural services to continue.

In announcing Talair’s closure, owner and managing director Sir Dennis Buchanan said the airline had been making losses of a million US dollars and could not afford to continue. Sir Dennis said the airline’s US$2 million in reserve would be used to immediately pay off all the staff. The airline would negotiate with creditors to wait for the sale of assets to before being paid off. Sir Dennis puts the value of Talair’s assets at S2O million.

Air Pac forecasts

increase in revenue

Fiji’s national airline, Air Pacific, has forecast it will be able to generate revenues of US$7OO million in the next four years. The airline’s finance director, Narendra Kumar, said the last time the revenues exceeded $7OO million was over an eight-year period. Air Pacific recently completed its most ambitious building project a US$l4 million hangar facility at Nadi International Airport.

NZ Telecom

profits fall

TELECOM New Zealand has reported a sharp drop in profit down to USSSB.S million for the year ended March 31. The drop was attributed to a major restructuring of the company. The profit fall down from U 55218.5 million in 1991-’92 was expected since Telecom announced plans to cut its staffing by 5000 and to streamline its organisation. Chairman Peter Chirtcliffe says the result is satisfactory in the context of a major restructuring.

PNG Agriculture

bank restructures

THE Agriculture Bank of Papua New Guinea is selling off its business subsidiaries to local interests. The bank's managing director, Shem Pake, says this is in line with the bank’s move to shift back to its core lending function. Pake said the bank had begun the long term process off selling off unsuccessful subsidi ary companies a move he believes is in the best interest of the bank.

Pake said because the bank was not an investment company, it could not suc cessfully run businesses.

Air New Zealand

wins award

AIR NEW ZEALAND has won a prestigious award for its Oceans Cam paign program featured on the airline’s international inflight entertaining pro gram Blue Pacific. The Oceans Campaign features received the Grand Environ ment Award at the 42nd Annual Pacific Asia Travel Association (PATA) confer ence in Hawaii.

An Air New Zealand statement said PATA and its member associations aim to promote tourism professionalism in the

Pacific-Asia region. Air New Zealand approached a California-based environ mental group, American Oceans Cam paign (AOC), with the idea of making feature films covering environmental and conservational issues to be screened on BLue Pacific.

A partnership, involving Air New Zealand, AOC and Television New Zealand, was formed to raise awareness of the South Pacific in terms of its appeal as both a travel destination and the environmental issues of concern.

The Oceans Campaign highlights issues such as coastal pollution and the exploitation of marine resources and the protection of the fragile natural re sources.

The Oceans Campaign has been featured on all Air New Zealand’s international flights since October 1992.

Aust dollar

at all-time low

THE Australian dollar dropped to an all-time low on the Reserve Bank’s trade weighted index, which measures the average value of the Australian dollar against the currencies of its major trading partners.

The Central Bank’s trade weighted index is currently measuring the dollar at a record low of 49.2 per cent. Currency dealers say investors are trying to sell of the dollar, prompting the Australian Reserve Bank to intervene.

The dollar sharply decreased in value against most major currencies since May 31 when Australia’s balance of payment figures were released. It was announced the country had a current account deficit of 51.7 billion.

On June 1 the Australian dollar was valued at US 67.6 cents, 72.4 Japanese Yen and NZSI.24. Twelve months ago it was valued at US 75.7 cents, 96.09 Yen and NZSE4I.

TAB in Fiji

joint venture

The people of Fiji’s Tailveu province have entered a joint venture with the New South Wales government to intro duce Totaliser Agency Board (TAB) betting outlets in Fiji this year. This follows cabinet approval of the setting up of a computerised betting system after considering a detailed plan developed by the NSW TAB.

NSW’s Minister of Sports, Recreation and Racing, Chris Downy, said the outlets hoped to get significant returns from the multi-million dollar markets of the Pacific region. The Fiji outlets would be connected to the NSW TAB head office in Sydney via satellite. □