SAMOA AIRWAYS : ARRIVALS AND DEPARTURES
Former PM Tuilaepa Sailele Malielegaoi and Minister of Civil Aviatio Hon Olo Fiti Va’ai
21 August 2021
The controversial decision to enter into a long term lease for a plane to be our national carrier remains a devisive issue between the HRPP opposition and the FAST government. In a press statement issued by the HRPP, the leader of the opposition Tuilaepa Sa'ilele Malielegaoi criticised the new Minister for Civil Aviation, Olo Fiti Va'ai for "still thinking like a member of the opposition" even though he is now a member of the ruling party.
Olo had recently criticised the HRPP for entering into the lease agreement for the plane as an attempt to win votes at the April 9 election. In defending the timing of the plane's arrival, the former Minister for Public Enterprises Lautafi Fio Purcel claimed that delays were caused by the global Covid 19 pandemic.
The leader of the opposition went on to say that in order to improve the tourism industry Samoa needs to utilise it's own plane. He went on to refer to the success of Fiji's tourism industry as being due to it having it's own national airline and that "the HRPP government recognised this when it decided to lease the plane" (for Samoa).
He added that without Samoa Airways, Air New Zealand would have a monopoly on the route between Samoa and New Zealand and as a consequence "airfares will never drop".
He cited the need to boost tourism and make overseas travel easier and affordable as the basis for the former government's decision. Currently the plane leased from a company in the Netherlands is in Brisbane where it is undergoing technical tests. The FAST government has said it would conduct a full and transparent review of the decision by Samoa Airways to lease the plane.
The Prime Minister has been reported as saying that Samoa Airways made substantial financial losses even before the outbreak of Covid 19.
OPINION
Samoa does not have a good record in managing and operating it's own carrier. The lease of 2 planes by Samoa Airways' predecessor Polynesian Airlines plummeted the country into debt and near bankruptcy.
Samoa Airways has operated at a loss since its inception and has remained operational through loans from UTOS and other outside funding. The only successful arrangement in recent times has been Polynesian Blue, a joint venture between the Samoan government and Australia’s Virgin Blue. Each year the company returned a dividend cheque to the government.
However, the former HRPP government disbanded this joint venture claiming collusion with Air New Zealand on fare structure. This was also the precursor to having a national branded carrier. The prospect of opening up and restarting Samoa's tourism industry does not appear to be a viable option in the foreseeable future. The health and safety of our nation must remain a priority amidst the global pandemic. Comparison with Fiji's tourism industry might be convenient but is not appropriate.
Fiji has huge investment by major international hotel, resort and hospitality chains as well as sophisticated tourism and service industry infrastructure. More relevantly it is (or was) serviced daily by major international airlines direct to Australia, Asia, the Middle East, Europe and the US. A priority of the new government must be economic responsibility. In this regard it is still preparing an interim budget.
Part of this is getting a handle on the financial and other obligations entered into by the former government. The massive obligation to lease a plane by a debt saddled agency amidst a global pandemic warrants review and reconsideration.