21 Dec 2005

Nauru asks US to return state airline's only plane

4:10 pm on 21 December 2005

Nauru has appealed to the United States to release the Air Nauru jet which was repossessed at the weekend, saying it is the only link between the island and the rest of the world.

The AAP news agency reports the Transport Minister, Dr Kieren Keke, as saying the repossession of the plane has put lives at risk as the health of many families in Nauru depends on travel to Australia for medical emergencies.

He says thousands of people, including Nauruans trying to get home for Christmas, have been stranded.

The Government-owned Air Nauru lost its Boeing 737-400, on Sunday when it was repossessed by Export-Import Bank of the United States, the US government's export credit agency.

Nauru, which is trying to overcome a financial crisis, wants the Ex-Im Bank to lease the plane to Air Nauru until a buyer is found and the airline can find an alternative aircraft.

Dr Keke says the Ex-Im Bank would gain revenue while seeking interested buyers for the aircraft, and Air Nauru would be able to continue providing essential air services to the people of islands that have no alternative air service.