Published: 7:34PM Wednesday November 06, 2013 Source: ONE News <\/p>\n
A review of a multi-million dollar contract between the Cook Islands and Air New Zealand could see the market opened up to other airlines. <\/p>\n
The Cook Islands currently has to pay New Zealand's national carrier more than $13 million every year to operate direct routes from Rarotonga to Los Angeles and Sydney in a deal due to expire in October next year. <\/p>\n
\"It's a lot of money we are putting in out of the operational budget,\" said Finance Minister Mark Brown. <\/p>\n
\"It represents close to 13% of our budget.\" <\/p>\n
The Cook Island Government is now opening up the bidding to other commercial airlines after economic research found a new deal could provide further benefit to the local tourism industry. <\/p>\n
\"We have three or so to compare against each other and come up with something worthwhile for the Cook Islands,\" said Finance Secretary Richard Neves. <\/p>\n
Any new agreement would be in place for four years in order to give the Government security. <\/p>\n
\"Where these things always become unstuck is when they start to cost a lot of money so if we see oil prices, for whatever reason, go through the roof that makes it a lot more difficult to sustain the two underwrites,\" said Mr Neves. <\/p>\n
The direct routes are crucial for the Cook Island to access the US and Australian tourism markets. <\/p>\n
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Cook Islands market could be opened up to other airlines<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Published: 7:34PM Wednesday November 06, 2013 Source: ONE News A review of a multi-million dollar contract between the Cook Islands and Air New Zealand could see the market opened up to other airlines. The Cook Islands currently has to pay New Zealand's national carrier more than $13 million every year to operate direct routes from Rarotonga to Los Angeles and Sydney in a deal due to expire in October next year. \"It's a lot of money we are putting in out of the operational budget,\" said Finance Minister Mark Brown Continue reading