Air Tahiti Nui, celebrating its 25th anniversary, exhibits resilience with its Boeing 787-9 fleet and strategic partnerships, positioning itself strongly. The airline aims for US market competitiveness and strategic growth, emphasizing expansion and partnerships for future success.
1. What is the current state of the aviation sector in French Polynesia? Challenges and opportunities?
The aviation industry in French Polynesia faces significant challenges and opportunities due to the surge in tourism, particularly post-COVID. With French Polynesia being a prominent tourist destination, there has been remarkable growth, driven partly by the resilience of its borders during the pandemic. The influx of tourists, especially from the US, has led to record-breaking numbers, presenting both opportunities and challenges for airlines.However, despite the strong demand, there is a struggle to meet it due to limited accommodation options. While Airbnb has provided some relief, there remains a shortage of hotel rooms, impacting the overall tourism infrastructure. This imbalance highlights the need for investment in hospitality, yet attracting foreign investors, particularly from the US, has proven difficult due to unfamiliarity with the local governance structure and regulations.The tourism sector, including airlines and hospitality, plays a crucial role in the economy of French Polynesia, with a significant portion of flights connecting to the US. The unique autonomy of the region, combined with its appeal to international travelers, presents an attractive investment opportunity. However, there's a need for a strategic approach to investment, involving a mix of hedge funds and real estate specialists capable of navigating the complexities of the market.Historically, much of the hospitality development has been driven by local initiatives or individuals with a passion for the region rather than industry expertise. This has resulted in both successes and failures in hotel ventures. Moving forward, there's a recognition of the importance of aligning investment with expertise in hotel management to ensure sustainable growth and development in the tourism sector.
2. Air Tahiti Nui in a way represents the country, you recently celebrated your 25th anniversary. Could you provide us with a presentation on Air Tahiti Nui and give us some key figures?
Essentially, our airline operates internationally, with over 600 staff covering 455 destinations across major continents including Japan, the US, Europe, and Australasia. This unique business model caters predominantly to long-haul routes, with an average flight time of around 9 hours, making it a niche player in the aviation industry for the past 25 years.
Our recent transition from Airbus to Boeing aircraft just before the onset of the COVID-19 pandemic was successful, ensuring operational continuity. Despite being a smaller airline, we've managed to surpass our 2019 capacity and passenger levels with our Boeing 787-9 fleet, a testament to our resilience and adaptability.We understand the importance of strategic partnerships, especially in markets like Europe and the US where we operate. Collaborations with airlines like Alaska Airline in Seattle have been particularly fruitful, allowing us to expand our reach and offer more than 160 routes through code-sharing agreements and interline partnerships.Our focus extends beyond mere passenger numbers, as we prioritize revenue passenger kilometers (RPK), a key performance indicator that reflects the distance flown by passengers. With just four aircraft, we've consistently achieved impressive RPK figures, positioning us as one of the leading French carriers.Looking ahead to 2024, we anticipate continued growth and success, building upon our established reputation in the industry. We'll provide updated figures from 2023 to reflect our performance post-pandemic, ensuring transparency and accuracy in our reporting. Despite facing challenges such as the Omicron variant and subsequent lockdown measures, we remain optimistic about the future of our airline and the opportunities that lie ahead.
3. What are the main strategic development axes of Air Tahiti Nui to strengthen its position in the US market? Growth?
Our development plans primarily focus on ensuring effective competition in the market and seizing strategic growth opportunities. In the short term, our emphasis lies on competing effectively in the US market alongside our partners. The recent surge in travel demand has attracted interest from other airlines, reinforcing the need for us to maintain our competitive edge.Looking beyond, we see opportunities in carrying passengers to markets beyond our usual routes. This includes destinations like the Cook Islands, where direct access to the US is limited. By leveraging partnerships and our strategic position, we aim to facilitate seamless travel experiences for tourists connecting through French Polynesia.Australia and New Zealand remain key markets of interest, with ongoing strategies to enhance our presence and connectivity. While direct flights to these destinations were previously operated, we continue to explore options for providing air access and inventory availability, aligning with our commitment to serving French Polynesia.Expanding our route network requires careful consideration of various factors, including regulatory requirements, safety protocols, and market readiness. While opening new routes is feasible within a relatively short timeframe, establishing a robust supply chain and receptive business environment takes time.In the next two to three years, we anticipate significant progress in this regard, enabling us to explore new opportunities through partnerships or direct routes. Our experience with opening routes, such as Seattle, has affirmed the importance of thorough planning and market evaluation.Regarding fleet expansion, there are no immediate plans to add new aircraft. Managing an airline involves substantial capital investment, and we're currently optimizing the use of our existing fleet. As we continue to grow and evolve, future fleet considerations will be guided by our operational needs and market demand, ensuring responsible and sustainable expansion.
4. What role does Air Tahiti Nui play in the development of international freight transport and logistics?
Like airlines worldwide, the freight business in French Polynesia has experienced fluctuations, especially during the COVID-19 pandemic. Initially, there was a significant increase in yields and volume due to congested ports and reduced capacity, leading to favorable financial outcomes for freight operations. However, as the global situation improved, demand for air freight softened, and the shipping industry rebounded, normalizing competition between air and sea freight.While air freight remains a valuable source of revenue, particularly for perishable goods like fresh fish and live aquarium fish, the competition from sea freight, especially for larger shipments, poses challenges. French Polynesia's geographical location and limited export industry contribute to the reliance on air freight for certain products.Regarding shipping, there are discussions about the challenges posed by larger ships unable to navigate certain passages, potentially impacting the cost and efficiency of transportation. The decision to invest in upgrading port infrastructure to accommodate larger vessels is under consideration, weighing the potential benefits against the increased costs of transshipment.Ultimately, the competitiveness between air and sea freight depends on various factors, including cost differentials, capacity constraints, and the specific needs of shippers. While sea freight may offer cost advantages for certain cargo, air freight remains indispensable for time-sensitive and high-value shipments, ensuring a complementary relationship between the two modes of transportation in French Polynesia's logistics network.
5. Can you tell us about Air Tahiti Nui's initiatives regarding environmental sustainability and reducing carbon footprint?
The airline is committed to reducing its carbon footprint and has undertaken various initiatives in line with the CORSIA program by IATA. One major step is transitioning to more fuel-efficient aircraft, such as the Boeing 787, which has resulted in a significant reduction in carbon emissions. Additionally, the airline focuses on optimizing flight capacity to ensure that each flight is efficiently utilized, minimizing wasted carbon emissions.Beyond aircraft efficiency, the airline considers environmental factors in its operations, such as using alternate routes when feasible and reducing single-use plastics on board. There is also an emphasis on engaging with local communities and supporting environmental initiatives, such as coral reef preservation, which plays a crucial role in carbon sequestration.While the airline acknowledges the challenges in sourcing biofuels, it remains committed to exploring opportunities in this area. Carbon compensation programs are also part of the airline's efforts, although there is a call for more focus on ocean-related projects in addition to tree planting initiatives.Overall, the airline's approach to environmental responsibility encompasses multiple aspects, from aircraft efficiency to community engagement and support for environmental conservation projects, with a focus on mitigating its carbon footprint and contributing to a sustainable future.
6. What is your final message to Newsweek readers considering French Polynesia as a potential investment and tourism destination?
M. Monvoisin, President of Air Tahiti Nui emphasizes the safety and peacefulness of the country, contrasting it with global conflicts in places like Gaza and Ukraine. They highlight the warm and welcoming nature of the people in Tahiti as a significant asset for the country and express hope for it to remain peaceful.M. Bechonnet, Managing Director of Air Tahiti Nui encourages exploration of Tahiti beyond its natural beauty, emphasizing the unique cultural experiences and activities available on its 115 islands. They suggest that Tahiti offers exceptional luxury experiences and opportunities for relaxation and family enjoyment.
