AIR Kiribati Chairman Kevin Rouatu says the national carrier has yet to feel any fuel price increase from the Middle East crisis due to the nation’s low level of consumption, but expects impact to arrive soon as he pushes for around-the-clock airport operations and closer work with countries in the region.
Rouatu said the government and Kiribati Oil Company are negotiating with suppliers. So far, fuel continues flowing at the same price because suppliers view Kiribati’s demand as minimal.
“We haven’t felt the impact yet,” Rouatu said. “The flow is still flowing. Price is still the same. But we expect that impact will be experienced very soon.”
A more immediate challenge is that Kiribati’s main airport cannot operate after 7pm, forcing international carriers to wait until the next day. Rouatu described this as “not conducive” for airlines wanting 24/7 flexibility.
“We need to be able to get connected 24/7,” he said. “We keep on pushing them. We need it.”
In terms of tourism, Rouatu said Kiribati definitely needs more visitors, though resources are limited. He identified the nation’s people as the main untapped asset, but said accommodation remains a major hurdle. More hotels must be built before visitor numbers can grow meaningfully.
Air Kiribati currently operates one Embraer E190 and will take delivery of a second next month through a partnership with Australian-based ACJC. The airline is also looking to purchase two additional aircraft within five years.
Rouatu identified the small regional market as the Pacific’s biggest challenge, warning that “there’s no point in having 100 international planes to serve a very limited market.” His solution is collaboration – not necessarily full mergers, but synchronized efforts across airlines and tourism offices.
“We’re working in silos,” he said. “Unless we synchronize our movement, it will be difficult to attract the rest of the world to the Pacific.”
He put forward the idea of multi-destination itineraries, allowing visitors to spend three days in Nauru, three in Kiribati, and three elsewhere. “We need to look at how we can link together,” he said.
