The chief executive of Nauru's national carrier Our Airline, Karam Chand, says that despite signs of economic recovery, there are still major challenges that must be met by his and other regional airlines in the short to medium terms.
An interlining agreement between Our Airline and Air Kiribati has enabled Our Airline to re-launch its Tarawa - Nadi route, extending to nine the number of cities into which it now flies.
The inaugural flight under the new interlining arrangement, linking Brisbane with Honiara, Nauru, Tarawa and Nadi and return, was flown last weekend.
The interlining agreement has been hailed as a major example of commercial aviation commonsense, especially in light of the recent global downturn, which has impacted on all international airlines.
However Mr Chand says they need to continue to identify new, profitable revenue streams to support the airline's core business, while maintaining the choices and expectations of the market they cater for.
He stressed how co-operation between regional airlines is essential to growth.