This forum established after an incident of witch hunts and tracing attempts was observed to occur against students who spoke out on a topic others wanted silenced, on another forum. Our site is dedicated to those students.
>

VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, [6], 7 ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 08:47:47 02/07/00 Mon
Author: Anonymous
Subject: Re: PNG PRIDE
In reply to: 's message, "Re: PNG PRIDE" on 09:39:53 02/04/00 Fri

A small wealthy Pacific island country, Nauru has an airline that is always running broke but is supported by the income from the phosphate mine and realty investments abroad, mainly in Australia. The airline was running even with only one or two passengers between, for example, Fiji and Nauru but it had to fly and perhaps continues to fly to keep the national flag visible. It's an airline for the pride of the nation, not for profit. Do we want to see the same situation with PX?

I agree that the two resources (funds and management expertise) plus other elements vital to running such an operation as an airline are absent in the case of PX. PNG has other major problems which require public funding than to continue to support an airline which could make profit due to the nature of such business (i.e., revenue generating business). But no, there are probably huge fixed overhead costs which is probably consuming much of the revenue/grants generated which very little profitability. While there may be huge demand for travel by air in the country, perhaps the effective demand (the ability to pay) is what really counts.

It seems those who can travel these days are those employed in public organizations who have their entitlements to travel every couple of years to their home provinces, costs of which are met by the same public purse (government budget). I find many of my friends and relatives working for private organizations do not have such entitlements but are paid more hansomely than their public employee counterparts, leaving them with the choice to purchase their own travel tickets home. But of course, there are so many other demands on personal income that the travel entitlements included in the R&R paychecks are mixed together, these folks do not get to see their folks back in their villages. I guess it is also a case of personal descipline and budget priorities. That's too much of an aside. But it gives another angle to the fact that PX revenue cannot improve anymore than what travellers are able to afford these days. I think the bulk of travellers with a wage job travel on company business or their entitlements are paid by their employers. It is a viscious circle.

With the limited market, PX cannot be expected to be profitable, unless management do some trimming of the huge fixed costs and the economy helps generate the market (help the potential travellers become more the the effective kind (those with the ability to pay)....

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Replies:

[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.