26th September 2005

Air Services to Niue Excluded from Polynesian/Virgin Blue Airlines Merger

The Government of Niue has received an official notification from the Chief Executive Officer, Mr John Fitzgerald, for the Polynesian Airlines that, ‘As a consequence of the Government of Samoa decision [to enter a joint venture with Virgin Blue Airlines] I am therefore obliged to now officially advise that Polynesian Airlines Boeing 737-800 jet services through Niue will cease - effectively after the operation of Flight PH722 on the morning of Friday 28 October 2005.’

The decision has not come as a surprise to Premier Vivian who is determined that the nation state of Niue will not be without air services. “I will be in Wellington next week to discuss and hopefully to commit another air service to Niue if I can. I think I can promise my people that.”  Premier Vivian however is anxious to offer a reassurance that the cessation of air services by Polynesian Airlines to Niue will no way affect the special and friendly relationship that we have with Samoa.

“The Government of Samoa always had our interests at heart and has always been there for us when we need help, and I am thankful for those mercies. We may have lost an air link to our country that we have enjoyed in the past but there are other, more important issues of friendship, for example, that can never be compromised.”

The cessation brings to a premature end the Agreement for Provision of Air Services between Polynesian Airline and Niue which began on October 2002. But Niue did not engage Polynesian’s air services with an ‘Oliver Twist bowl in the hand’ approach – the more than $900 000 underwritten guarantee from the Government of New Zealand had ensured that the airline’s profit margin would be maintained and therefore should not have considered the air services to Niue uneconomic.

Niue’s relationship with Polynesian Airline has not been plain sailing, [or plane sailing] during the early years of association. Polynesian Airlines, using an HS748 aircraft, began operating services to and from Niue in 1971, the first passenger service on the island’s newly opened international airport. As Polynesian improved its financial position a 737-200, called Sina, was added to the fleet and continued to serve Niue until 1981 when Air Nauru became the island’s carrier.

Air Nauru’s fortunes faltered in late 1980s but Samoa Air continued to service Niue until Air Nauru returned in 1991 with a newer aircraft, a much reduced air fare, and a direct service to and from Niue which continued until late in 1997. Royal Tonga took over and continued with the direct services although this was reduced to a turbo prop aircraft in 2001 ferrying passengers from Niue to link with the jet services in Tonga to New Zealand. Eventually Royal Tonga faced financial difficulties in 2002 and was replaced by Polynesian Airlines until the present time.

That Niue was probably not an important item during Polynesian’s negotiations with its joint venture partner, Pacific Blue, it must be remembered that the company has served Niue well in previous years, including the present time. While Niue has benefited [in that the air services had ended Niue’s isolation from the rest of the Pacific] the unfortunate consequence of steadily reducing the island’s population over the first decade a trend had left Niue in dire straits in terms of numbers.

Polynesian Airline had been very generous in the months immediately following Cyclone Heta in 2004. Reduced freight rates, cheaper air fares for the cyclone victims and to returning Niueans who came to help, and allowing returning travellers generous excess weight on the flights home if they were carrying food for their friends and families were some of the important indicators of Polynesian’s generosity.  These certainly have made a difference in situations following a natural disaster.

 
“It is no one’s fault that we are in a situation where we have found ourselves in,” explained Premier Vivian. “The trick is not to get despondent and depressed, but to find another way to solve the immediate problem. That is why I am going to New Zealand next week.”

“May I take this opportunity to thank the Prime Minister of Samoa, and Polynesian Airlines for the air services that has been provided in the past three years. I understand that in the Age of Aquarius where enlightenment and profit margins are the rule I will not allow Niue to be held responsible for holding back an airline that has the potential and the opportunity to improve its fortunes. On behalf of my government and my people I wish the new Polynesian Blue joint venture all the best for the future.”  

Public Relations Office

PREMIER”S DEPARTMENT