Some domestic routes may require government financial assistance: DG PMO

December 5, 2024 9:57 pm | Posted in Business News | Share now Twitter Facebook

By Charles Hakwa.

The Director General (DG) of the Prime Minister’s Office (PMO), Cherol Ala, recently led a delegation, including Aviation Projects of Australia, funded by the Australia-Pacific Partnerships for Aviation Programme (P4A), on a Community Support Obligation (CSO) tour across the country. The tour aimed to consult communities on the effects of losing aviation connectivity and gather their feedback.

Following the collapse of Air Vanuatu, many islands lost air connectivity, and grievances have been widespread. However, even before the collapse, some islands were already underserved by the national airline. From an air operator’s perspective, Avgas or A1 jet fuel is expensive, and flying regularly to destinations with low passenger numbers results in significant losses, leading to the discontinuation of air services.

In Queensland, Australia, the state government subsidises airfares to keep remote communities connected to Brisbane and major regional towns, with Link Airways running these flights. A similar scheme in Vanuatu could maintain air connectivity to all islands, even those with low passenger numbers.

DG Ala noted that while some domestic routes could operate commercially, others might require financial assistance. The Community Service Obligation (CSO) study was conducted to better understand the demand for domestic connectivity for both passengers and freight, enabling the Government of Vanuatu to plan and budget effectively for these requirements.

Access to healthcare is a vital reason for improved air connectivity. Unity Airlines and Air Taxi have long played critical roles in running medevac flights and serving the population. However, implementing a service like Australia’s Royal Flying Doctor Service would make medical air transport more accessible. The CSO team acknowledged the importance of aviation services in enabling healthcare access, though establishing aeromedical capabilities is a decision for the Government of Vanuatu.

Many airstrips lack runway lights or Navigational Aids (NAVAIDS). Whether the government would consider installing runway lights, sealing runways, or adding NAVAIDS such as VHF Omni Ranges, approved Global Navigation Satellite Systems (GNSS), or Required Navigation Performance (RNP) approaches remains to be seen. These upgrades would allow medevac operations at night or in adverse weather.

DG Ala believes that fit-for-purpose, all-weather airline and charter access to airports across Vanuatu is essential. Where the CSO study highlights demand exceeding airport capacity, including infrastructure like NAVAIDS and lighting, it will be noted in the findings.

Currently, most people in Vanuatu prefer maritime transport over air travel due to cost and the variety of shipping options. If one shipping company stops operating, connectivity is not lost. This contrasts with aviation, where the collapse of Air Vanuatu significantly reduced domestic connectivity.

The increase in international airlines serving Vanuatu after Air Vanuatu’s demise has led to more flights and higher tourist arrivals. Similarly, having more domestic operators would ensure better connectivity and competition, preventing service disruptions if one operator ceased operations.

The CSO delegation toured the country in a Cessna Caravan operated by Skytrans, an Australian domestic airline. While Skytrans or other operators could potentially boost domestic services in Vanuatu, DG Ala stated that decisions about airline operators are matters for the Government of Vanuatu. Skytrans also operates Dash 8 Q100 and Q300 aircraft, which, although slightly smaller than the ATR 72, offer similar speed and range.

One CSO team conclusion was that Santo should become a major domestic hub due to high passenger volumes. Skytrans could regularly fly the Port Vila-Santo route with its aircraft, complementing AV3’s services and creating competitive ticket prices for passengers. Other Australian operators, such as Hinterland Aviation and GAM Air, operate aircraft like the Cessna Sky Courier and Dornier 228, which are well-suited for Vanuatu’s shorter, rugged airstrips. Their presence could also lower costs and increase options.

The CSO study aims to inform passenger and freight demand in terms of capacity and frequency. However, decisions on aircraft types and operators remain with the Government of Vanuatu.

Over time, many Ni-Vanuatu have recognised that the government struggled to manage the national airline, as evidenced by its collapse. Supporting well-managed private operators by allocating funds to increase their fleets could better connect the islands.

The Government of Vanuatu acknowledges the need for improvements in the aviation sector. With Australia’s support, the CSO study’s fieldwork was completed in October, covering six provinces over two weeks. The final report is expected in the New Year.

DG Ala noted that the study’s results would guide the government in determining the models needed to enhance airline services in Vanuatu.