|LOST ITS SHINE: Pacific Sun|
Air Pacific is having to restructure its domestic airline, Pacific Sun, just three years after buying it.
Pacific Sun took to the airways in 2007 when Air Pacific bought the small planes off Sun Air. The planes were rebranded with the Air Pacific colours of red, dark blue and yellow.
But the makeover failed to pay off. Despite being bought for 44 million dollars, it quickly accumulated 18.5 million dollars in losses.
Pacific Sun General Manager, Jim Samson, admits the airline has been losing six million dollars a year since Air Pacific bought it.
He says the company has been forced to restructure and that 85 jobs will go with 25 new positions to be created at Air Pacific.
Pacific Sun says its management will be meeting with staff over the next few days and that consultation with affected employees and their elected labour representatives will start after Christmas on the 31st.
It says while not required by law or any individual or union contracts, eligible employees will be offered three months’ severance pay.