20 Jun 2005

Chairman of Airline Association of South Pacific remains opposed to PIASA

3:23 pm on 20 June 2005

The chairman of the Airline Association of the South Pacific says there are still too many problems with the proposed Pacific Islands Air Services Agreement, or PIASA.

John Campbell says PIASA would cause problems for airlines within the region because there are relatively few viable routes in the South Pacific.

Mr Campbell, who's also the general manager of Air Pacific, says the consequence of having an open skies arrangement, which he says is what PIASA is, is that the majority of viable routes would become very crowded

"The majority of airlines would seek to service those routes, and only those routes, so that they would ultimately become a little bit like the Trans Tasman service which is a complete bloodbath, with absolutely no airline making any form of sustainable level operation there."

Mr Campbell says an economic assessment study on the value of PIASA is now underway and it could lead to changes in the agreement.

Seven Pacific Island countries have signed up to PIASA and two have ratified it.