Air Tahiti Nui (TN, Papeete) is set to see extensive revisions being made to its business plan after the Tahitian territorial legislative chamber issued a damning report on the carrier's performance dating from 2008 until now. The airline, 85%-owned by the Tahitian government, was accused of "failing to take hold of its destiny", while its financial state was "overwhelmingly" dire with over EUR72.9million (USD98.95million) in losses racked up over the past four years. The report identified the key mitigating factors responsible for the carrier's poor performance as: Constant management upheavals (five CEOs hired in the last 4 years); the global economic crisis; rising jet fuel prices; an inability to rid itself of excess fleet capacity (a fifth A340-300); an inability to secure timely partnership/alliances with other airlines; an inability to reduce costs and streamline it staffing requirements. As such, the report has proposed the following recommendations as part of a Strategic Turnaround Plan set to be adopted by year-end: Undertake a review and assessment of travel classes and onboard product; consider sourcing smaller aircraft types; seek third-party financial support for heavy loss-making yet critical markets (e.g. Tokyo Narita which loses €5.0million per annum); consider the possibility of entering regional markets (Easter Island, the Cook Islands, Fiji etc); consider creating a seasonal-fare tariff structure so as to aid the development of tourism in French Polynesia; take a more prudent approach towards fuel hedging in order to minimize risk; secure more freight business to better utilize capacity; reduce staff overheads. At present Air Tahiti Nui's staff compliment is estimated at 782 used to operate five A340-300s on an exclusively international albeit limited route network that includes Auckland International, Los Angeles International, Paris CDG and Tokyo Narita.
Papeete outlines turnaround plan for loss making Air Tahiti Nui
Air Tahiti Nui Airbus A340-300,
© Airbus Industrie