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Aviation

FUEL COST THREAT

ECONOMIC CHALLENGE FOR ISLAND AVIATION Proudly supporting

By Ema Ganivatu carriers either relying on high load factors
with low fares (low-cost carriers) or operating
Pacific aviation remains a critical service but faces deep- with higher ticket prices and lower seat the South Pacific
rooted challenges that limit the viability of new airlines and occupancy.
hinder regional growth. Neither model is well-suited to the Pacific.
Outgoing Chairman of the Association of the South Pacific “The Pacific Island countries have small
Airlines (ASPA), Brett Gebers, said a range of structural populations and even smaller economically
and economic factors made airline operations in the Pacific Brett Gebers active population able to purchase airline
especially difficult. tickets at a price that makes sense to the
“For airlines to function, there must firstly be a reason for airline,” he said.
people or freight to travel by air,” he said. “Filling seats with tourists and business passengers is
“Secondly, there must be sufficient ground amenities such hampered by the lack of accommodation in all the Pacific
as accommodation, transport, airport handling facilities, countries.
restaurants, food supply, and hopefully medical facilities to “Whilst air travel is essential and brings enormous benefits
support the travel and movement of freight. All of this comes to the inhabitants of the Pacific, there are not enough
at a cost that people must be prepared to pay for.” travelers to make another airline work unless it is subsidised
Gebers emphasised that air travel remained essential in some way.”
across the Pacific due to the vast distances between islands On how to increase passenger traffic in the North Pacific,
and countries, but that didn’t make operations financially Gebers pointed to a shortage of tourism infrastructure.
sustainable. “There is an immediate need for new and suitable
“A new entrant will struggle unless the airline has access to accommodation in all the PICs,” he said. “The increasing
a large amount of money or is underwritten in some way,” he accommodation must be accompanied by growing the other
said. amenities required for general travel and tourism.”
“The setup costs, the ongoing costs of compliance and He said once infrastructure is improved, marketing efforts
operations, are huge. can have a stronger impact.
“To recoup the investment and make a small profit, a new “Once there is a product to sell, all parties should maximise
carrier must fly the aircraft at least 16 hours per day with their marketing efforts to ensure that their countries
enough paying passengers to cover the operating costs.” benefit,’’ Gebers said.
Gebers noted that such operations are particularly difficult “The existing airlines must find ways of working together to
in the Pacific. minimise costs and increase efficiency to keep their costs as
“Many airports have limited hours of operation. Airport fees low as possible.”
and other associated ground costs are higher than they are in He also called for direct government involvement and
other parts of the world for the limited service provided,’’ he support.
said. “Governments should accept that aviation is an essential
“Fuel is expensive because of the limited volumes sold. All service and ensure that it is supported in every way possible,’’
these issues add to a high-cost base.” he said.
According to Gebers, the airline industry worldwide is “The economic benefits of having regular airline services
capital-intensive and operates on thin margins, with most are well documented.”
PASSENGER FORECAST SOARS

REGIONAL AIRLINES TO REPOSITION

By Netani Rika and Ema Ganivatu For Association of South Pacific Airlines Chief Executive
David Tohi, that means ASPA must evolve its role and help
Forecasts by the International Air Transport Association member airlines position themselves to take advantage of this The 787 Dreamliner is the fastest widebody fleet to surpass 1 billion passengers.
(IATA) indicate that the biggest growth in air passenger forecasted growth.
numbers in the period 2023-2043 will be in the Asia-Pacific “ASPA’s role will see it continue to promote and be actively
region. involved in training and capacity building,’’ Tohi said.
As the economies of China, India, Indonesia, Malaysia, “This growth means that there will be an accompanying
Singapore, and Vietnam grow, IATA expects there will be a demand for a whole lot more airline staff such as pilots,
corresponding expansion in airline passenger and freight
numbers. Continued on page 16

14 Islands Business, May 2025

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