SOLOMON IS: Solomon Airlines in dire financial state
Updated
The Chairman of Solomon Airlines, Rick Hou says the airline's problems are so dire that the new board is looking at all possible options to bail it out. Mr Hou, who is also Governor of the Solomon Islands Central Bank, says the airline might have already ground to a halt and temporary arrangements are being made while the board looks at other alternatives - including partnership with other airlines.
Presenter: Sam Seke
Speakers: Rick Hou, Chairman of Solomon Airlines,
HOU: For the time being in terms of air services because aircraft is grounded they allowed us to have this temporary arrangement in getting passengers in and out of Solomon Islands. So this is why these other providers are brought in.
SEKE: That was Ausjet, also from Australia, and you've got 737-200 plane doing that service now?
HOU: Yes well I mean Ausjet is doing some and other carriers are doing some of the sectors and some of the flights yes.
SEKE: From your understanding how serious are the airlines' financial problems?
HOU: The airline has been in financial problems almost from like day one. On a number of occasions this thing had sort of been postponed by doing various things and government has been brought in on a number of occasions. At the moment we are still trying to figure out how serious they are, but I can confirm yes they're serious.
SEKE: Now Mr Hou I know you've only been on the job well a week or two now, but do you think Solomon Islands has the capacity to sustain a commercially viable air service, especially on its international route?
HOU: I have to confess I know nothing about the industry but running an airline is not cheap. But I think when you have an airline which is wrought with difficulties from its very first day of existence I think it's bound to have difficulties, and I was saying before I think that as far as I see it it's just a matter of time before we come to the grinding halt, which is probably now. I think whoever sort of was making these decisions; I think they ought to have been looking at all options. But I'm not sure whether we have the right one, as I said I don't think I'm in a position to say whether we are capable or not capable, I really don't know yet.
SEKE: Would you consider maybe going into a joint venture operation with let's say Qantas or Virgin or Jet Star for that matter on your international routes, in that you will have security and maybe efficiency?
HOU: Oh I think we're looking at all options. Actually right now we are talking with almost like talking with anybody who can sort of give us convincing sort of options for us. We are open, my board of directors joined the board not at their choice, but we try to do the best thing and we believe that doing it right for the Solomon Islands is our first priority. That might mean not having an aircraft that we run it ourselves, we might have a combination of whatever doing it co-sharing or giving it to another airline partner.
