KEY POINTS:
International charity Oxfam says Air New Zealand's request for higher subsidies from some small Pacific Island nations for services between them and the United States threatens to cut services vital to the islands.
The airline wants the Samoan, Tongan and Cook Islands governments to help make its North American routes - with stopovers in the islands - more profitable.
The NZ Government has a 75 per cent stake in Air New Zealand and putting at risk key economic links of Pacific Island neighbours went against the Government's commitment to support economic development in the Pacific, said Oxfam executive director Barry Coates.
"While a high proportion of the Government's aid budget is focused on the Pacific region, our government-owned national airline is demanding millions of dollars from developing Pacific countries if they are to continue to trade internationally and entice tourists to their shores," he said in a statement.
Air New Zealand has told the Samoan, Tongan and Cook Island governments that the weekly links to Los Angeles from Auckland via Tonga and Apia, and another via Rarotonga, are in question.
The airline told the Cook Islands government the present subsidy of $2 million for its Los Angeles flights needs to increase to $8 million if these stopovers are to continue.
"It is unacceptable for Air New Zealand to demand steep increases in payments from New Zealand's Pacific neighbours at a time of economic turmoil and uncertainty," said Mr Coates.
In a statement Air New Zealand said it has been open and transparent with Pacific governments about the declining performance of the flights and discussions were continuing on whether they could be maintained.
Tonga's Tourism Minister Paul Karalus told Radio New Zealand International that Tonga was keen to work with Air New Zealand to make the Tonga/Apia stopovers on the Los Angeles service profitable.
Mr Karalus says the Air New Zealand service was "bedded in" and he would be very reluctant to see it go.
"Our interest would be to retain it," he said.
"When we talk of a subsidy, as I see it, we're not necessarily talking of some fixed subsidy, what we're looking at is to assist Air New Zealand to ensure that it becomes profitable and sustains profitability on the route."
Mr Karalus said Tonga had hired consultants to review the service and will work with Samoa to negotiate with the airline.
Samoan Deputy Prime Minister, Misa Telefoni, had criticised Air New Zealand and suggested it was holding Samoa to ransom.
- NZPA
