Virgin Blue and Samoa reach agreement for airline joint venture

Airline Industry Information, July 18, 2005

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Virgin Blue, an Australian low-cost carrier, and the government of Samoa are to form a joint venture airline called Polynesian Blue.

The International Finance Corporation (IFC), the World Bank's private sector unit, said that it would act as the main advisor to Samoa for the agreement. Polynesian Blue will reportedly take on the long-haul services of Polynesian Airlines, the national airline. The agreement was reached after months of detailed negotiations, One News reported.

According to Bernard Sheahan, the IFC's director for advisory services, air transport to Samoa would be improved by the new airline and it is also expected to have a positive effect on the government's budget, Reuters reported. The ownership of the new airline will be two equal stakes of 49% for the Samoan government and Virgin Blue, while the remaining 2% will be owned by an independent Samoan shareholder.

The maiden flight for the new airline is expected to be set for October and it is to operate services from Samoa to Australia and New Zealand with Boeing 737-800 aircraft.

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