SEVERING OF AIRLINE AGREEMENT EXPECTED TO CAUSE AIR PACIFIC LOSSES

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SUVA, Fiji Islands (January 31, 2000 – Radio Australia)---Fiji's national carrier, Air Pacific, reports that it could lose some $2 million as a result of the termination of an interline agreement with domestic carrier Air Fiji.

Radio Australia correspondent Ofa Kaukimoce reports from Suva.

"Until last week, Air Fiji was handling international bookings to all of Air Pacific routes.

"This is no longer the case as the interline agreement between the two airlines has been severed, reportedly because of tension over Air Fiji’s opening routes to Tuvalu and Tonga.

"This means that the national carrier will loose about $2 million in business from Air Fiji.

"In the meantime, Air Fiji is still handling the engineering work for Air Pacific at Suva's Nausori airport, which is bringing in about half a million dollars.

"Ofa Kaukimoce, Radio Australia, Suva."

For additional reports from Radio Australia, go to PACIFIC ISLANDS REPORT News/Information Links: Radio/TV News/Radio Australia.

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