New Zealand to help Cook Islands underwrite air service to LAX

On 10 July 2009, during a visit to Rarotonga, the New Zealand Prime Minister, John Key, announced that this financial year New Zealand will support the Cook Islands Government’s decision to underwrite any loss on Air New Zealand’s weekly Los Angeles-Rarotonga-Auckland route, with a capped $1 million contribution from the aid programme (see previous post).

UK negotiates expanded air services opportunities with Cuba on behalf of the Cayman Islands

On 7 April 2009 Caribbean Net News carried a report on the outcome of air services negotiations held between Cuba and the United Kingdom (and Overseas Territories). Representatives of the Cayman Islands participated as part of the UK delegation.

In New Zealand's case we do not negotiate air services arrangements on behalf of the Cook Islands, Niue or Tokelau, even though New Zealand has responsibility for their foreign affairs and defence. Although the Tokelau atolls have no airport we still include in New Zealand's air services agreements a specific exclusion of Tokelau.

Pacific Islands countries underwrite Air New Zealand operations to maintain direct links to LAX

In October 2008, with the price of jet fuel still near record levels, Air New Zealand made it clear that it would need financial support if it was to maintain what had become unprofitable air links between the Cook Islands, Samoa and Tonga, and Los Angeles (LAX)(see previous post).

On 24 November 2008 Radio New Zealand International reported that the Cook Islands Government had agreed to continue providing Air New Zealand with an underwrite for its RAR-LAX service.

On 20 February 2009 the New Zealand Minister of Foreign Affairs, Hon. Murray McCully, announced in a speech that the New Zealand Government (through NZAID) had agreed to help the Samoan and Tongan governments with underwrites to maintain the TBU-APW-LAX air links.

"... That means we need to be hard-headed in our focus on those initiatives that will contribute to sustainable economic growth.

"A good example is the provision of air services and shipping services - the arteries for tourism and trade.

"Recently the Samoan and Tongan governments requested support from the New Zealand government in retaining the Los Angeles link that is so vital to tourism traffic from the United States and Europe.

"We have agreed to an underwrite for the next year while we focus on longer-term solutions in this area.

"If we can't maintain the essential services that make trade and tourism possible, the rest of the debate is futile."

On 9 March 2009 Radio New Zealand International reported that on this development, quoting comments made by the New Zealand Prime Minister, Hon. John Key. On 10 March 2009 Radio New Zealand International reported on reaction from the Cook Islands Government.

On 18 March 2009 the Samoa Observer reported that the Cook Islands Government was concerned that the New Zealand Government was not also supporting it with its underwrite, together with comment from the New Zealand Minister of Foreign Affairs.

Government support for air services to remote communities is not unprecedented, with the United States having a comprehensive essential air service (EAS) programme, while Australia has a Remote Air Service Subsidy (RASS) scheme and in Europe there are public service obligation (PSO) air routes (Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes refers).

Air New Zealand has already been providing a weekly B737 service to tiny Niue with an underwrite.

Air New Zealand reviewing services beyond RAR, TBU and APW to LAX

Television New Zealand and the Samoa Observer are carrying reports dated 26 October 2008 that Air New Zealand is seeking government subsidises if it is to continue its weekly services beyond Nuku'alofa, Apia and Rarotonga to Los Angeles.

The non-stop service between Rarotonga and Los Angeles is already subsidised by the Cook Islands government.

PIASA enters into force following ratification by Niue

The Pacific Islands Forum Secretariat web site indicates that the Pacific Islands Air Services Agreement UPDATED (PIASA) entered into force on 13 October 2007 following ratification by a sixth Pacific Islands country, Niue.

The initial parties to the PIASA are the Cook Islands, Nauru, Niue, Samoa, Tonga and Vanuatu (see also previous posting on 16 May 2007).

Niue signs the PIASA

The Fiji Daily Post reported on 19 March 2007 that Niue has signed the Pacific Islands Air Services Agreement (PIASA). The PIASA needs six countries to ratify it before it comes into force. So far it has been ratified by the Cook Islands, Nauru, Samoa and Tonga. Along with Niue, Kiribati, Papua New Guinea, the Solomon Islands, Tuvalu and Vanuatu have signed but have yet to ratify the treaty.

I attended the negotiation of this agreement in Fiji and Tonga.

Air Tahiti to serve Papeete-Rarotonga air route

Tahitipresse in a 5 February 2007 story reports that, after Air New Zealand ceases operating between Rarotonga (RAR), in the Cook Islands, and Papeete (PPT), in French Polynesia, Air Tahiti will commence a twice-weekly ATR72 service on the route. Air Rarotonga will be code sharing on this service which starts on 3 April 2007.

On 26 October 2006 Air New Zealand announced that it would also be ceasing operations between Papeete and Los Angeles and will instead code share on Air Tahiti Nui services on this sector. At the same time Air New Zealand will be recommencing a non-stop Rarotonga-Los Angeles operation.