21 Mar 2012

Cook Islands Tourism does not expect LA to Rarotonga flight to generate profit

10:36 am on 21 March 2012

Cook Islands Tourism officials say they do not expect the Los Angeles to Rarotonga flight to generate profits for Air New Zealand, which operates it.

They say as a result, Air New Zealand will continue to depend on the government underwrite that currently guarantees its existence.

According to Cook Islands News, Tourism officials are standing behind the government guarantees for both flights, despite the anticipated 10.2 million US dollar bill that taxpayers will be paying the airline to operate the flights during the 2012 to 2013 financial year.

The officials say the direct Sydney-Rarotonga flight has potential to become more profitable as its popularity increases and if it is used more often for freight purposes in conjunction with carrying passengers.