Tuesday, April 1, 2008

Difficulties abound for Solomon Airlines in 2008

Solomon Airlines ended 2007 in strife about its management, its board and an array of different stakeholders.

In 2008, the Airlines have kept being hit - from political, board, and competitive directions.

The new government has already run into problems appointing a new board, with criticism about the process as well as apparent miscommunication with Rick Hou the appointed chair.

Just last month, an unprecedented level of competition was introduced by Skyairworld with cut rate prices and 5 flights a week between Honiara and Brisbane.

The latest attack has come from former PM Sogavare, who argues the airline is not an asset to the country. He is calling for it to be sold.

These events are set against a difficult commercial situation for the airline - a former financial controller of the airline has reiterated that cashflow problems remain and are capable of crippling the airline in the near future.