Airlines operating in Pacific say industry in crisis
Updated
Airlines operating in the Pacific region say the industry is in crisis, as a direct result of soaring global fuel prices.
In the past month, Fiji Air has announced it is struggling to survive, the American Peace Corp has ended its commitment to Kiribati, Solomon Islands has reduced its flights, while Continental Airlines is suspending flights out of Guam and Saipan.
George Faktaufon, from the Association of South Pacific Airlines, has told Radio Australia's Pacific Beat program, airfares will have to rise.
"Even in good times it has always been a challenge for regional aviation," he said.
"The airlines, they have been absorbing to some extent the increases, but I think the time is coming now where they will have to pass it on to somebody to bear that."
