In this edition:
- Pacific airlines stay steady despite war in the Middle East
- Qantas expands Brisbane-Honiara capacity after win over Solomon Airlines
- Air Niugini to relaunch direct Auckland-Port Moresby route
Airlines confident against fuel price headwinds
AFTER Air New Zealand cut back on domestic and international flights due to looming fuel shortages, Pacific airlines pronounced a rosier outlook.
Both Air New Zealand and their Australian counterparts Qantas have said they would not roll back Pacific flights in the short term, from now until the end of April.
Meanwhile, Fiji Airways CEO Paul Scurrah told RNZ Pacific that their schedule remains unchanged.
Samoa Airways CEO Fatu Tielu said much the same, but said they would look to combine flights if loads were light.
Air Niugini said in a statement that they were "closely monitoring" developments, but assured no disruptions either.
This mirrors the confidence that Pacific island governments are having over their own fuel situation, many having paid for and received large fuel shipments before the conflict began.
Fiji Prime Minister Sitiveni Rabuka has pledged to local media that they would not see a price hike at the pump anytime soon - in other words, there is no need to panic.
It makes for an important message, as hoarding would only drain through fuel stocks faster.
Their fisheries and forestry Minister, Alitia Bainivalu, went as far as to say that there was no change of a price hike because "FIJI DOES NOT RELY ON FUEL COMING DIRECTLY FROM THE MIDDLE EAST."
Though it ignores the fact that the global price of oil has soared in connection to the Middle East, it shows an expectation that they would be able to avoid expensive shipments even in the event they had to re-import.
Qantas beats Solomon Airlines
The Brisbane to Honiara route is a lucrative one, especially in the summertime.
Qantas has won a legal battle to operate more services between Brisbane and Honiara, despite protests from Solomon Airlines.
A determination by the Australian International Air Services Commission (IASC) requires Qantas to operate fully on Tuesdays from June 30, and that "only Qantas is permitted to utilise the capacity."
It's decision, released yesterday, stated the new flights would enhance competition and benefit the Australian public.
It counters Solomon Airlines' argument that it would undermine the interests of Solomon Islanders, submitting the new date would "cannabalise" their customer base by drawing travellers away.
"There is no increase in schedule choice for travellers with both carriers operating the same days and in general the same timings."
Accusing Qantas of trying to drive them out of the market, the airline called it "a cynical attempt to dump capacity on a struggling route in order to ultimately reduce competition," amidst decreasing demand.
The IASC found that this argument related to competition and it's impact on Solomon Airlines' bottom line, rather than "any demonstrable detriment to Australian public benefit."
It noted in assessing "competition" that it had to consider "the desirability of fostering an environment in which Australian carriers can effectively compete with each other."
"The Commission considers that capacity expansion is generally consistent with promoting competition and enhancing public benefit." the decision read.
The two airlines, each their respective national carriers, operate services on two overlapping days per week between Brisbane and Honiara, four days visa versa.
On the former route, Qantas will now fly five times, while Solomon Airlines will only fly three times.
Auckland-Moresby direct flights after 28 years
The last time Air Niugini flew direct to Auckland was in 1998, so their foreshadowing of a new direct route will be a welcome surprise for those with a long memory.
They're planning to resume three flights a week from June 11th, as reported by AeroRoutes, with a formal announcement due soon.
It comes amidst two significant developments in Papua New Guinea - a new tourism reform programme, and their "grey-listing" by the Financial Action Task Force.
RNZ Pacific reported late last month that New Zealand, as per their FATF obligations, had to scrutinise any business from PNG far more closely than they otherwise would have. It includes kiwis dealing in PNG and vice versa.
While it may impact business travel, pleasure travellers visiting Aotearoa will benefit from a cut of around NZ$55 (138.98 kina) to the cost of a visitor visa, as the government announced last week.
On the flipside, the government are seeking to boost their tourist numbers, overcoming PNGs reputation as a place of danger. Their tourism agency reported around 130,000 visitors to the country in 2025, though only 15 percent of them were holidaying.
"The sector is considered to be only scratching the surface of its potential," the website said.
In response, the government is seeking to repair their tourism institutions, through improved governance, better promotion of niche visitor experiences in the adventure space, and up-to-date industry standards.
Those reforms are currently in the consultation phase.
-This is the 3rd edition of the Pacific Business Brief.
(Article: RNZ)