Guam - Pacific Flier has suspended service for at least 6 weeks, according to an announcement on its website.
The statement reads:
Aviation Matters, Inc , doing business as PacificFlier, regrets to advise that due to continuing delays in being granted appropriate traffic rights and workable terminal access in Koror, Palau, it will suspend all flights until appropriate traffic rights and access is in place and the company is able to sell all sectors without compromise.
Services will be relaunched with new equipment as soon as regulators in all jurisdictions agree to the new aircraft fleet to be operated on their routes. Hopefully co-operation will be forthcoming with the 3 regulators involved.
This process is expected to take up to six weeks to get regulatory approval.
It is expected that all staff will be retained during this period and over the next 2 weeks all creditors’ commitments will be settled.
Passengers will be handled appropriately in this period in line with contractual requirements.
PacificFlier are confident upon the resumption of services the airline will be able to operate with reliability and quality delivery that it is thriven for but has been compromised since its March 2010 launch by matters outside its control.
Should satisfactory operating environments not be able to be negotiated PacificFlier will consider changing its route network or the level of planned rotations to some ports.
The directors believe that this short suspension to services is the only way that the airline can deliver its new world service to Micronesian communities and Asian holidaymakers.However a report on the aviationprofessionals.org website states that Pacific Flyer has shut down because "the owners and representatives of Pacific Flyer are alleged to owe many hundreds of thousands of pesos to business located within the Clark Freeport Zone for accommodation, services, fuel" and other expenses.
Meanwhile, the blog yssyforum.net reports that "Pacific flier suffered a stumbling block in its bid to launch international flight services to the Philippines after the FAA refused to grant it a foreign air carrier's permit."
As a result of the FAA decision, the yssy.net blog states that the Palau-based carrier, which is owned by Aviation Matters, has suspended and deferred its flight plans from Koror to Brisbane, Manila and Guam.
The blog site quotes a legal representative for the airline, Eckert Seamans as saying: "We are still waiting for the FAA's approval but unfortunately they wont be coming any time soon due to some technical and legal issues with them."