The need for a national carrier

By The Editorial Board 27 August 2024, 10:00AM

It was a suggestion coated in humour but the message driven by Archbishop Mosese Vitolio Tui was clear. Samoa needs a national carrier capable of international flights.

He suggested this during his first mass urging Prime Minister Fiame Naomi Mata'afa for an aircraft for Samoa.

"Your honourable Prime Minister, please don't be mad at me but please get an aeroplane for Samoa, Air New Zealand is very expensive. The Fiji Airways used to be cheaper which we used to travel on but it's gone up now," he said.

Both Air New Zealand and Fiji Airways have increased the number of flights to Apia. This shows that the route is still very lucrative and there is money to be made if there was a national carrier.

For many countries, the national carrier has played a significant role in nation-building and national identity. Historically, airlines have been regarded as important national symbols and they have been used by governments as ‘chosen instruments’ for projecting their countries internationally.

Both financially and symbolically national carriers hold a certain amount of significance in the aviation industry. Some passengers feel an allegiance to these airlines and fly with their national flag carrier for the sense of pride that it gives them. Also, some passengers fly with flag carriers over other airlines, due to the image that they are safer and less likely to encounter financial difficulties.

The number one reason why Samoa needs a national carrier is for competition. A Samoa Airways flight servicing the New Zealand route will help reduce fares that Air New Zealand has a monopoly in.

Secondly, the Samoa Tourism Authority can use the national carrier to dish out attractive packages for resorts inclusive of airfares. It will bring about innovation in how we can market our resorts and holiday destinations.

Let us look at a factor which has plagued us. We had a national carrier and we did not manage that entity as we should have. Instead of making profits from it, mismanagement and poor decisions saw us returning it and the poor management was the reason the Government did not back it during the pandemic. The nations that did manage their national carriers well and backed it during the pandemic are now taking a chunk of the profits that should have been Samoa’s.

Accessibility plays a vital role in attracting inbound visitation. Several Pacific nations have managed to sustain national carriers, with Fiji Airways as a standout. In recent times, Fiji Airways has introduced more flights to and from Asia, not only for Chinese markets, but also toward better global connectedness, for example, through Singapore.

Fiji Airways works hand in hand with the tourism authority in the country. When tourists are buying tickets to travel to Fiji, they also have an option of buying a package deal where they can choose which hotels they choose to stay in.

A report by the Asia Development Bank suggests several ways of improving air services to and around the Pacific, which suffers from limited flight capacity and air links. These include pooling of airline resources, flight code-sharing, developing regional air service offices to streamline security and aviation compliance, increasing foreign investments in tourism facilities, and professionalizing commercial management of tourism facilities by facilitating entry of skilled people.

There is a need to move away from that thought process and perhaps engage in a manner that will become the Samoan way, something that will ensure that our visitors keep returning to our shores.

Tourism creates important multiplier effects on other sectors of the economy. Three levels of impact can be estimated. The direct effects are the economic impacts derived directly from changes in tourist spending as it occurs in the tourism-related establishments. The indirect effects occur because of the increased purchases of tourism-related businesses. The direct and indirect effects will have accrued the local income in the form of wages, salaries, profits and rent. The money spent within the local economy will generate additional economic impacts called the induced effect.

The increased flights also point out the need for Samoa to have a national carrier. For Air New Zealand this means increased business. This could have been Samoa Airways.

During the pandemic, most aviation companies survived because they were supported by their governments and as things are getting better, things are improving for the airlines.

Samoans lost employment through the decision to return the 737 aircraft. The routes are being serviced by either Air New Zealand or Fiji Airways and they are smiling to the bank.

We need to be smiling to bank.

By The Editorial Board 27 August 2024, 10:00AM
Samoa Observer

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