Life has never been easy for airlines serving the tiny Micronesian islands sprinkled across the Pacific, but fuel prices are making it worse.
Government-owned Air Marshall Islands has lost nearly $5 million over the past three years and Air Kiribati plans to lay off half its staff in a desperate plan to save money. It too is state owned and says that it is not allowed to charge market rates because the government sets its fares.
Start-up Air Saipan expected a better future because of the number of Asian tourists who visit Saipan. But Craig Champion, the airline’s vice-president, says a major investor has pulled out because of high fuel costs. As a result Air Saipan has shelved its launch, which was scheduled for this spring with Boeing 757 charter services to Japan.
The only good news among smaller carriers is that Air Nauru is taking off again. With an assistance package from the Taiwanese government the airline has bought a used Boeing 737-300 from a US carrier to replace the one repossessed last year. ■
Source: Airline Business
