Samoa Airways ceases issuing vouchers— all tickets are non-transferrable

Pago Pago, AMERICAN SAMOA — Sales and Revenue Manager for Samoa Airways, Chris Dalton says they are re-enforcing a non-transferrable airlines ticket policy effective immediately.

Based in Apia, Dalton was in American Samoa until Tuesday.

Initially the Samoa Airways office at the Pago Pago International Airport would issue a voucher for those travelers who don’t show up on day of their flight or call in to cancel their tickets, but as of last week Friday, July 15, 2022 that has changed.

“All tickets are non-transferrable because of national security and while it has been done in the recent past, it has to stop,” said Dalton in an interview with Samoa News at his office.

He gave an example.

“I can buy a ticket and I go through the vetting process, such as showing of identification but then I transfer to someone else, who could be a terrorist and yet that person doesn’t go through the vetting process, hence the concerns.

“And our offices here and in Apia, were allowing it, but it has got to stop,” he said.

Adding that the Samoa Airways is not doing anything “new” but they are re-enforcing policies and rules already in place — just not being enforced.

Dalton told Samoa News, that it will be challenging and the company will get “backlash from its customers” but it has to be done.

“At the end of the day we are just keeping in line with every other IATA operating area, following the same standards.”

The International Air Transport Association (IATA) is a trade association of the world's airlines founded in 1945 in Havana, Cuba. 

It is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services — for the benefit of the world's consumers.

Samoa is a member of the IATA and therefore their standards have to be met.

According to Dalton, aside from the security issues, their customers are not showing up on their scheduled flight days and some don’t bother to call in to cancel.

 “And we miss the opportunity to resell the ticket. Like any other business we have to be sustainable and with the current market we have to enforce that now to make sure the airline survives.”

He also noted that their twin otter planes are very old, and in order to get enough funding to invest in new aircraft, to improve their services — the airline needs money — “if we don’t operate as we should by following policies we will not get enough money to keep operating,” he said.

“And for that to happen we need to operate profitably not just sustainably.”

Dalton also made it clear that generally airfares will increase and that is just the cost of operation.

All administration costs, rent, fuel, and operation costs increase every year.

 “Right now were are selling standard fee of $130 one way, and it’s a restricted airfare, which is quite high and it is not an ideal fare but given our limited capacity we can sell to make up sustainability.

“We are restricted by the capacity as per the American Samoa Government.

“They say we can only operate 12 flights a week, but that does not include charter flights that we have to make a special request for approval.

“However if we could operate up to 20 flights a week, it will allow us to decrease the airfare and share cost on amount of flights, but again it is restricted by the Government,” he said.

Dalton also made it clear the new changes were not “just” implemented when the new interim board came on board, it was something that had to be done regardless of the change in management.

Last month, Samoa’s Cabinet appointed an interim board for the Samoa Airways and interim Chairman is Tupuola Koki Tuala, with members, businessman Taimalie Charlie Ah Liki and Fatu Tielu, the former CEO of the Airline.

The new interim board replaces Papalii Sonya Hunt, Tuia Paepae Letoa, and Muagututia Lafaele Ngau Chun who were dismissed from their duties for the Board of Directors.

Last year the Latu legal firm issued a review of Samoa Airways and cited they allegedly “breached the solvency requirements of the Companies Act 2001, which attracts both civil and criminal sanctions.”

The legal review, endorsed by Taulapapa Brenda Latu found that Samoa Airways had accumulated debt of up to SAT$80 million, of which SAT$68 million are the accumulated losses from November 2017 to January this year for the lease of the Generation Boeing 737-800 aircraft.

This placed the Airline in a highly distressed financial position, which on any assessment reflects a company which is technically insolvent as it is ‘unable to pay its debts as they fall due.  This led the Cabinet to cancel the Samoa Airway’s lease for the Boeing aircraft.

The legal opinion says the Samoa Airways Board of Directors approved the lease of the Generation Boeing 737-800 aircraft and it would also appear to be individually breaching statutory directors duties under the same Act by failing to properly inform the shareholder of its financial position and continuing to trade while insolvent.