5 Apr 2010

Small New Caledonian airport closes as subsidy ends

1:52 pm on 5 April 2010

The airport in Touho, on New Caledonia's east coast, has been closed amid financial problems.

New Caledonian television reports that this comes as the government of the northern province no longer continues to subsidise the domestic airline's service to Touho.

The airport had four flights a week by Air Caledonie which has been operating at a substantial loss.

Reports say public subsidies covered more than half the flights' costs.

The closure is expected to dampen the prospects of the tourism industry.