Aircraft to be considered 'further down the line'

By Sialai Sarafina Sanerivi 04 November 2023, 10:00PM

The recently appointed Minister of Finance has discussed the possibility of Samoa getting an aircraft "further down the line" as one of the government's major development projects.

Speaking on the Soalepule program on the EFKS television on Friday night, Lautimuia Uelese Va'ai said the government is considering the project to bring in an aircraft but it will not be any time soon. 

"Further down the line, I think we should have our own aircraft," Lautimuia said. "That is the only way we can have a say or help with the competition between airlines and help reduce the cost of airfares. 

"That's a model that has been used by Fiji and if we look at it, our total debt has been reduced to 35 per cent of our GDP compared to Fiji. Fiji's total debt was 90 per cent of their GDP but it has dropped to 80 per cent because of their national airline. 

"I guess the difference between us and Fiji was that our airline led us to more debt and was running on debt while Fiji is gaining profit from its airline."

Lautimuia said it is his belief that Samoa should learn from Fiji and have the right model and people to run and operate an airline.

"We know it's working for Fiji and we need to consider looking at how it's done and to look at all the factors we need to consider. 

"We also need to make sure we do it at the right time and the right aircraft as well as choosing the right routes we can service. 

"There are other options we can look at in the time being like having codeshares with other international airlines. However, we also need to be vigilant about the terms and conditions of those agreements. 

"But further down the line, having our own aircraft is what we should do as it will greatly contribute to the development of tourism and the country but it's just a matter of timing."

Furthermore, he said there should be extensive research on how to successfully run an operate and airline as well as choosing qualified people to lead the development of the airline. 

"Fiji gambled a lot when they started their own airline and if we do it, we need to have the right people to lead the operation and control it. Owning an airline is one thing, but running it at a profit it's another thing and that's the most important thing. 

"The government has now taken up the responsibility of paying off the airline's debt from the previous administration but the good thing is that it has reduced and that it can be paid off. 

"We also need to note that we are eligible to request and propose another loan for big development projects. But we have to choose the right projects and the right time to do it. And I believe having our own airline is another big project we should consider."

Over a week ago, the Minister for Samoa Airways, Leatinu'u Wayne So'oialo confirmed that discussions are underway between Samoa Airways and Fiji Airways on the possibility of having a codeshare agreement. 

The discussions, according to Leatinu'u were focused on how many seats Fiji Airways can sell to Samoa Airways, in order to operate flights going to New Zealand and other countries around the world. 

He also confirmed that Cabinet has yet to make a decision on a proposal from another international airline to have codesharing with Samoa Airways. 

Leatinu'u further explained that at this stage, they are considering all the pros and cons of getting into partnerships with international airlines as they do not want "history to repeat", learning from the previous mistakes of the former administrations.

A codeshare flight is an agreement between airlines to sell seats on each other's flights. This gives the appearance of airlines flying to more destinations. By doing so, the airlines share the revenue on that ticket according to the agreement.

Leatinu'u made the revelation in response to questions on whether they are looking at bringing in a new aircraft for Samoa Airways. 

He reiterated that purchasing a new aircraft is the least of their problems at the moment and is not even considered an option until they pay off the airline's debts. 

By Sialai Sarafina Sanerivi 04 November 2023, 10:00PM
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