Virgin Australia has not ruled out servicing Samoa under its own brand after its joint venture with the Pacific holiday destination’s government ends later this year.
The bust-up with the Samoan government means the Virgin Samoa joint venture, formerly known as Polynesian Blue, will end on November 12 after more than a decade of operations.
The decision by the Samoan government to end the partnership comes amid ongoing tensions over fare levels and the benefits the nation’s tourism industry derived from the deal.
Samoan MP Olo Fiti Vaai accused Virgin Australia and alliance partner Air New Zealand of colluding to boost profits.
“We pay $1,000+ one way and yet when you go to Auckland, its $NZ150-$200 to fly to Australia,” he told the Samoa Observer newspaper.
“They are making money off of the Samoan people, yet they charge us an arm and a leg.”
The Samoan government and Virgin Australia each have a 49 per cent stake in Virgin Samoa, which flies between Samoa’s capital, Apia, and Auckland in New Zealand as well as Sydney and Brisbane in Australia.
They signed the deal in 2005 after the costs of running Samoa’s national airline, Polynesian Airlines, burgeoned to more than half of the government’s annual budget.
It meant the joint venture would handle international flying, leaving Polynesian running domestic routes
But the Samoans are again intent on running their own international carrier and the government has been talking for some time about expanding Polynesian’s network.
Virgin said in a statement it was working the Samoan Government to confirm exact timing for the end of Virgin Samoa service
It was also “reviewing options for operations to and from Samoa after the Virgin Samoa services conclude”.
“We will provide an update on operations and timing in due course and any affected guests will be proactively contacted to discuss their travel options,’’ it said.
