SOLOMON Airlines’ new Chief Executive says the carrier has absorbed soaring fuel costs through gradual fare restructuring rather than a straight up levy, as the Solomon Islands looks to expand its network of air service agreements and build tourism infrastructure from the ground up.
Matthew Findlay, just 93 days into the role, described his tenure as a “baptism of fire”. When he arrived in mid-February, fuel was $USD60 a barrel. It has since nearly doubled, peaking at $USD130. Fuel was already the airline’s largest single budget line item before the spike.
“We simply can’t pass on that price hike through fare increases immediately,” Findlay said. “It’s just not a flow-through you can put on the customer without losing market share or losing your customers completely.”
Instead, the airline has increased fares incrementally, adjusted fare buckets, and raised excess luggage charges to recover costs more proportionally.
Unlike other Pacific carriers, Findlay said supply is not a major concern due to the Solomon Islands’ separate shipping lane. However, he said there is a “counter-benefit” to the crisis: travellers avoiding long-haul Europe trips may instead consider short-haul destinations like the Solomons.
On tourism, Findlay was straight to the point: “Does our country need more visitors? Yes, we do.” He said natural attractions—dive sites, World War II history, beaches, and coral reefs—are abundant, but the supporting infrastructure such as hotels and resorts is just not there. Marketing budgets need sharper focus and greater investment.
The airline currently operates two Airbus A320s, one Dash 8, and two Twin Otters. Findlay is developing a “Survive, Thrive, Overdrive” plan to determine whether the existing fleet mix remains fit for purpose.
A major challenge, he said, is that the Solomon Islands has only 11 or 12 air service agreements. “That’s an incredibly low number,” he said, and the plan is to try and cut new deals with the US, Japan, Korea, and Singapore.
“We talk a lot, we do little,” Findlay said. “Don’t let perfect get in the way of something that’s great.”
