Pasifika Air plans grounded for now due to uncertainty
MIKE Pero has parked plans for a new airline to fly from Christchurch and Wellington to the Cook Islands, citing continued uncertainty over quarantinefree travel.
In December, the Christchurch businessman announced he had begun an approval process for his new airline, Pasifika Air, to serve the Pacific Islands, saying it could gain its air operator’s certification as early as May.
But in a statement yesterday, Mr Pero said he had reluctantly decided now was not the time to launch Pasifika Air.
Talks around a travel bubble to the Covidfree Cook Islands started mid last year while parts of Australia were locked down.
‘‘The Cook Islands has never had Covid19 and there is still no border reopening date, yet the travel bubble with Australia is about to open,’’ Mr Pero said.
‘‘For a newcomer airline, there is usually a minimum three to fourmonth timeframe from any commitment to lease an aircraft to its actual delivery date.
‘‘The fallout from the Covid pandemic on the airline industry has blown out such timelines.’’
He believed a Boeing 737800 was the most suitable aircraft to operate direct flights and, while there was no shortage of those aircraft on the ground, there were few that could be made airworthy in the timeframe needed once a border reopening date was confirmed.
The global downturn in the aviation sector had led to a shortage of, and delays in, engineering slots being available for recommissioning those aircraft from storage.
As of this week, the airline was 80% complete with its documentation, manuals and paperwork for its air operator’s certificate.
‘‘The certification process was a major and critical part of the launch schedule and we were on a good timeline for an midyear signoff.
‘‘Nevertheless, it is difficult to negotiate with aircraft lease companies when you have no certainty on border reopening dates.
‘‘To commit $3 million$5 million in deposits and insurance just to have twotothree aircraft sitting on the tarmac makes no commercial sense.
‘‘As for funding, we were 75% of the way there and I had no doubt we would have achieved our full startup capital requirement,’’ Mr Pero said.
‘‘The company and its funds remain fully intact and we will progress our AOC to a point where we can be ready to reignite.’’
His personal costs to date amounted to ‘‘several hundred thousand dollars and, thankfully, not millions’’.