A second airline is being established in the Pacific Island of Palau to follow Palau Trans Pacific's effort to break Continental Micronesia's market hold.
Palau Trans Pacific started flying between Palau and Taipei in November using a Boeing 737-800 leased from Taiwan's Mandarin Airlines. Palau Air plans to begin operations in July offering scheduled flights to seven overseas destinations.
"Palau is poised to grow and we want to exercise the sovereignty rights of Palau by flying to places such as Japan and the Philippines," says the airline's owner, Alan Seid.
Seid says talks are being held with Ansett Worldwide and Boullioun Aviation Services to lease two 737-200s. He has brought in investors from Japan and Guam and persuaded the governments of Kosrae, Palau, Pohnpei and Yap to be equity partners.
"Palau is a desirable [tourist] destination and we want to change the hubbing from Guam and rely less on Continental Micronesia," he says.
Regulatory approval from the Palau trade and commerce ministry was received last September.
Source: Flight International
