Solomon Airlines CEO's End of Year Message

Dear Friends,

As we prepare for the festive season, I am pleased to provide an update on our national carrier at the end of a very significant year for Solomon Airlines.

Just two months ago, we marked our 60th Anniversary Year with a program of exciting events commencing with the Solomon Airlines 60th Anniversary Peace Marathon.

Marking both our anniversary and officially commencing the countdown to the Solomon Islands hosting of the 2023 Pacific Games, the marathon brought together over a thousand runners and members of the community for the first time in three years.

In the lead up, Solomon Airlines also unveiled our 60th Anniversary Logo, together with some of our longest serving staff who had worked for the airline for up to 42 years. Their collective experience, effort and sacrifice have been part of the resilience that has enabled the airline to endure.

With that in mind, it was also very encouraging to see the interest and many questions asked, by the 160 high school students who attended Solomon Airlines 60th Anniversary Aviation Week Fair.

While we looked back on our history, we also saw first-hand, the enthusiasm of today’s youth to carry our airline forward.

This is particularly relevant as we enter 2023, and look ahead, following the impact of the COVID-19 pandemic and the reopening of Solomon Islands borders on 1 July this year.

It will take energy, consistent effort and collaboration to rebuild our airline and our tourism opportunities and to return Solomon Airlines to profitable operations.  None of us can assume that things will be as they were before.

Already we have increased our flights between Brisbane and Honiara to 4 x services weekly to bring international visitors to our shores once again. We have also ensured daily connections to Solomon Islands’ major leisure destinations, using our largest Dash-8 domestic aircraft.

As I write this, Tourism Solomons has reported a better-than-expected start to inbound tourism arrivals in the first three months to 30 September 2022. So, while we are looking ahead with confidence, we are also very realistic, about the work we have to do.  

As the national carrier we must serve air transport and cargo needs within our country and we must also collaborate regionally to support recovery and tourism growth.

Currently, we are operating at about 60% of pre-COVID levels, which is the responsible position, but also presents financial challenges. By the New Year with the experience of our first six months of returned operations, we will be in a position to again review demand, capacity and schedules.

Meanwhile, the aviation industry continues to grapple with rising costs including fuel, insurance and aircraft leasing costs. Many suppliers and financiers are demanding greater risk mitigation and tighter terms, which can also impact cash flow.

 As we rebuild revenue and operations, there is no margin for error and we must make the right moves at the right time, with constant focus on expenditure and efficiency.

In 2023 we plan to review Solomon Airlines’ organisational structure, fleet, schedules and fares to ensure we are right-sized for the future.  

‘Right sized’ does not imply organisational expansion.  In fact, our greatest focus will be on right-sizing our operations, with service, reliable schedules and on-time operational performance being our most pressing priorities.

The COVID-19 pandemic brought with it huge challenges for our airline, especially in terms of finding additional revenue to make up for lost passenger business. This required us to transform quickly and almost completely, from an airline which offered scheduled passenger flights, to an international charter operation. 

We sought and secured Government approved charter opportunities and also worked with our regional partners to utilise our aircraft and bring in much needed revenue.

Currently we are carefully managing conversion back to a scheduled passenger airline.  It remains a work in progress, balancing capacity, demand and revenue imperatives.

To date we have achieved a schedule that is meeting current passenger needs and is also enabling greater collaboration with our regional airline partners.

Part of that has included working closely with Air Niugini and Fiji Airways, to provide more options and better connections for our passengers.

We have also resumed our fortnightly Tarawa services from 6 December, and we are in discussion with the Government of Kiribati, and other carriers as to greater collaboration on that route.

Solomon Airlines and Air Vanuatu too, are looking at ways to collaborate more closely to the benefit of both airlines and our passengers.

Looking forward, we see that opportunity will come from greater regional co-operation for regional economic gain. Network expansion will come via airline collaboration, sharing resources, improving connectivity and focussing together on bringing the world to and through our region for and beyond the 2023 Pacific Games.

The COVID-19 pandemic has changed a great deal about life as we know it, and also about the business of aviation and our place in the world.

Celebrating our 60th Anniversary is especially poignant at this time, as we would not be here today if not for the sacrifice of our staff, the collaboration of our partners and creditors, and the support of the Solomon Islands Government, and the Governments of Australia and New Zealand. To them we say a sincere tagio tumas.

As we approach the Christmas holidays, from our Solomon Airlines family to yours, we wish you a very Merry Christmas and blessed holiday season surrounded by love, family and friends. 

We wish you peace, good health and good tidings ahead of very exciting year for our airline and our nation in 2023.

Yours sincerely

Gus Kraus

Chief Executive Officer

Solomon Airlines