On to Los Angeles

AIR Pacific, Fiji’s interna

tional airline, will begin a direct weekly 8747 service to Los Angeles from July. This was announced in Suva in December by company chairman Gerald Barrack who said “This new service will complement the two Qantas direct services which are due to commence in April 1994. Qantas and Air Pacific will work in cooperation to market and develop the route. However, it is not intended that the two companies will cross purchase seats from each other as they do on the Australian routes.”

For several years the board and the management of Air Pacific have been

exploring ways in which the company could operate a profitable service to Los Angeles. The company held numerous discussions with airlines serving the South Pacific towards the possibility of a seat share arrangement on their aircraft.

These discussions have not been successful. Air Pacific has also carried out annual formal studies on the viability of itself commencing a direct Los Angeles service in addition to constantly monitor ing the changes occurring in that market.

These previous studies have shown continued losses of many millions of dollars.

Recently, however, a number of stra tegic changes have occurred in the South Pacific aviation environment which have, in turn, changed the picture for Air Pacific • Air Pacific’s lease of the Air New Zealand 8747 which began in August 1993 is based on a rate per month rather than a per flight cost. Thus, additional flying can be achieved at a much reduced rate; • Improvements have been achieved in the company’s arrival and departure “slots” at Narita which shortens the time the 8747 is on the ground in Japan and releases time for a Los Angeles service; • The Fiji government has now given notice to the New Zealand government of its desire to renegotiate the Air Services Agreement between the two countries. This will pave the way for a fairer and more balanced Agreement to be negotiated, and will give Air Pacific and opportunity to compete equally on

the route with Air New Zealand. It is this recent decision by government, and the opportunities this gives the airline, that has been a major factor affecting the change in Air Pacific’s strategic thinking; • Air Pacific now maintains its aircraft (including the 8747) at its new mainten ance base at Nadi, in the Western Viti Levu. This gives the company the opportunity to schedule maintenance in line with the operating pattern rather than having maintenance days deter mined by an offshore maintenance fa cility; • Recent months have seen the with drawal of Continental Airlines from the

South Pacific and of Northwest and United Airlines from the Australia/New Zealand to Hawaii routes. This has, in turn, increased overall South Pacific seat factors and fare yields; • Coupled with this are encouraging signs of a turnaround in the United States economy.

As a result of these changes Air Pacific has now completed an updated study of a direct service to Los Angeles from Nadi.

Following the presentation of that study to the board, Barrack announced the start of the weekly service from July, subject to a number of legal and administrative matters being resolved. □

New hangar: the $18 million maintenance and administration complex at Nadi