6 Jun 2007

Samoa budget allocation to help Polynesian Airlines

1:42 pm on 6 June 2007

The Samoa government has allocated more funds to Polynesian Airlines.

In the budget for the next financial year, 4.67 million US dollars has been set aside for the carrier, with two million dollars going to the domestic carrier.

The former Polynesian Airline merged its international service with Virgin Blue.

The Minister of Finance, Niko Lee Hang, says 600,000 dollars will be allocated for the return of the Dash-8 plane to cover the final certification checks of the aircraft and the cost of the early return before the lease expires in 2009.

The Dash-8 aircraft was found inappropriate for the size of the market.

The aircraft is currently grounded in Tonga after an incident two weeks ago when one of its landing wheels dropped off during landing at Fu'amotu international airport.

The rest of the airline allocation will be spent to pay the former airline's debts with ANZ Bank and the National Provident Fund.

Both loans were under government guarantees.