PolyBlue’s Record Profit Defy World Trends

Written by Pio Sioa
Saturday, 30 August 2008
PM Tuilaepa Sailele Malielegaoi shows a cheque and a smile worth NZ$1.6 million thanks to the profit making ways of PolyBlue. The joint venture airline between Samoa and the Australian based Virgin Blue, has defied once again world trends in the travel industry, by recording a record profit of nearly NZ$9.2 million (approx. ST$16.6 million) for the 2007-08 financial year. The PolyBlue success in only three years of operation so for far, comes at a time when 24 other airlines around the world went bankrupt in the same fiscal period. The airline’s profit taking for the year is “up 71% from last year’s pre-tax profit of about NZD$5.4 million.” The Prime Minister Tuilaepa Sailele Malielegaoi drank deeply in the ‘ sweetness’ of the PolyBlue achievement when it was officially announced at Aggie Grey’s Hotel on Wednesday. “There is no sweeter music to the ears than receiving some of our investment back,” PM Tuilaepa applauded in a wavering voice. The unsteady voice pitch is rare with the Prime Minister and it was unlikely to have anything to do with the air conditioning in the Tamarina Restaurant. If anything, it hinted at a personal struggle to control the emotional outflow of a successful venture that he had to fight very hard to get off the ground. He actually made the comment while holding on to a cheque, made out to the Government of Samoa for NZ$1.6 million, as the country’s take from the profits. A total sum of NZ$3.3 million was paid out from the profits to the shareholders in the form of “priority loan’ advances by Shareholders and from accrued interest on the loan. Samoa and Virgin Blue each own 49 per cent shareholding in PolyBlue with Aggie Grey’s Hotel taking up the 2 per cent left over balance. “Our decision to join with Virgin Blue Airlines in creating a national airline that would be financially viable and provide for our country with growth and financial stability, has again been vindicated by the ongoing profitability of Polynesian Blue,” PM Tuilaepa was quoted in a joint media release from the shareholders. “Samoa has benefited greatly from the success of Polynesian Blue and the people of Samoa can be further heartened with the payment from Polynesian Blue to our Government , which will be re-invested to directly benefit our people.” The Virgin Blue Chief Executive Officer, Brett Godfrey, did not attend the Wednesday profit announcement, but he too was quoted in the joint media release. “It is a tremendous achievement for any airline to be making money in the current aviation climate and Polynesian Blue is well and truly performing like a seasoned player in the global arena, generating a good profit when airlines around the world are collapsing under the weight of industry challenges,” he said. “The ongoing success of Polynesian Blue is testimony to the shared vision behind the airline, as well as the fantastic frontline team responsible for day to day operations. “The partnership between Virgin Blue and the Government of Samoa has exceeded expectations and Polynesian Blue is proving to be a profitable and solid national carrier for Samoa. Without doubt, Polynesian Blue services have contributed to the country’s tourism growth and burgeoning popularity as a desirable destination and of that association, we are very proud.” Travel figures for the carrier since it started operation in October 2005 show total increases of nearly 70 % of people arriving to Samoa from New Zealand, 35% from Australia and close to 54% for those who flew from Australia to New Zealand. PolyBlue is scheduling two new flights to add to the current routes it is currently serving with one additional Auckland Apia flight and a once weekly between Brisbane Australia and Apia. The Brisbane – Apia flight starts on 1st December 2008. Comments (5) Subscribe to this comment's feed Unbelievable written by The Prime Minster is Smart, August 31, 2008 To good to be true-- This is unbelievably great Hoorah for The Prime Minister. Good Job Sir Tahlofa. written by Albin Emerick, August 31, 2008 I spent two weeks in Samoa...and I definitely agree, that this Tiulaepa guy is really smart. Even the leader of our group that came over to Samoa agrees. The guy is just amazing! We will never forget Samoa. Της μια από την καλύτερη πάντα θέση ήμαστε. Σαμόα, σας εύχομαι όλο το καλύτερο στο κοντινό μέλλον. Το κρατήστε επάνω, και θα υπάρξει όλο και περισσότερος τουρίστας που έρχεται ο τρόπος σας. Manaia tele le meaai Samoa...e toaai le moa. u beauty... written by fasilaau emalus, August 31, 2008 well this is news at a time when our country is struggling with all these world economic pressures... its amazing how after only a small time our govt has pulled through with these long term investments. malo le faamalosi. this is indeed a good day for our country and our people and govt......... malo lava..... n da samba from vanuatu...... Uso.. Fasilaau is already a registered title....thou shalt not use it in vain or I'll see you in court. Tell the Truth written by Somefing Fishy, September 01, 2008 Other LCC carriers as profitable. Try Southwest Airlines in the U.S.A. Southwest still profitable after trials of other airlines are stifled. Polyblue will be tested in the future witht their biz. model.and may mean a climate of rough patch ahead without regional cooperation in the aviation co-ops of the south pacific aviation community. Joint Venture or Die---- Poly Blue Eh written by Truely Samoa, September 05, 2008 Take a time out here and think very carefully at the success of Poly Blue in the so call "partnership" with the government of Samoa. If the goverment in there right frame of mind at the time invested in our own Polynesian Airline company we could have had the same result. The operating cost of Poly Blue at the moment in the current market it's serving its well below what the Poynesian Airline spent, because they have resources and have been involved with this industry for a long time. Here is the break down of the failure of our own Polynesian Airline, 1 Our planes were chartered so to make any money we have to try and fill the plane up at every trip with passengers or cargo to make any profits, 2 Far too many managers for a small airline company and far too many employees, 3 bad mangement and lack of resources. Our government would have seen the writing on the wall but decided not to research ways to fix the problem but instead look for excuses to undermine our own abilities to operate a profitable airline outfit. Write comment Name Email Title Comment

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