How we can make Samoa Airways work

Dear Editor,

I would very much like to see Samoa Airways successful. But the reality of it is, is that it was doomed to fail right from the get go based on the lack of preparations for the long haul.

Having a business venture that requires a solid footing in financing is the key element in weighing the ups and downs of the business cycle in the Airline Industry.

As we all know that the Airline industry is a very competitive business that only the survival of the fittest can survive in any unfavorable conditions.

As I mentioned earlier when the Airline first started that it needs to have an Initial Public Offering to raise enough funds to secure the financial health of the company for the long run. In that way, it will not rely on the government for funding.

If you sell 25 million shares at US $10.00 a share, you will get 250 million in equity to start out with which is very conservative for such an undertaking because you’re looking at two to three years before you see any return of investments.

You can always have the listing in any stock market around the world for those that want a piece of equity in an emerging market that is pose to grow exponentially in the next 20 years. 

The advertisement of the company should include a one stop shop experience that includes air fare, hotel accommodations, rental cars etc.

And by the way, the government needs to stay away from running the business and create an independent investment arm or a partnership with the local investors and the private sector to steer the venture to a smooth and profitable future. 

I hope its not too late to reconsider such plan to move the Airline to the next chapter in the hotelier and the Tourist Industry. Good luck!

 

Leituala Roger B.

Samoa Observer

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