3 Nov 2008

Air New Zealand criticised for asking for subsidies to continue Samoa, Tonga, LA service

11:43 am on 3 November 2008

A former CEO of Polynesian Airlines, Papali'i Grant Percival, has accused Air New Zealand of being greedy and unethical over its threat to pull the Los Angeles-Apia-Nukualofa flight.

Papali'i Grant Percival told the Samoa Observer Air New Zealand's demand on Samoa and Tonga to fork out nearly 3 million US dollars to subsidise the flight was too demanding.

Papali'i, who's also president of the Samoa Association of Manufacturers and Exporters says for the airline to put that sort of pressure on a government is sheer greed.

The former airline executive and pilot says Air NZ knows it has no competition and is suspect of the timing of the demand close

to the busy holiday season when lots of Pacific islanders in New Zealand head home while islanders head to New Zealand for the holidays.

The Air New Zealand office in Apia declined to comment saying all releases should come from their head office in New Zealand.

He believes Air New Zealand have hedged themselves to pay for fuel at a certain amount for a certain period and are now paying more at a time when fuel prices are falling.