Consultants Propose Reforms at Air Tahiti Nui

A management consulting firm has recommended restructuring Air Tahiti Nui’s network and fleet, including resuming flights to Sydney (SYD) and starting flights to Honolulu (HNL), to stem ongoing losses.

Papeete’s Radio 1 reports that Belgium-headquartered Arthur D. Little submitted its report to the airline’s board in July after the French Polynesian Government, which owns Air Tahiti Nui, earlier commissioned the company to draw up a series of recommendations to overhaul the carrier.

Air Tahiti Nui lost XPF2.8 billion (USD27.3 million) in 2024 and has accumulated losses of XPF22 billion (USD214.4 million). The government recognises the need for French Polynesia to be connected to the rest of the world, but it wants to stop the losses.

Arthur D. Little made a series of recommendations concerning the network and fleet. Air Tahiti Nui’s four B787-9s operate scheduled flights to Auckland (AKL), Tokyo Narita (NRT), Seattle (SEA), Los Angeles (LAX), and Paris (CDG).

Only the Los Angeles flights are making money – generating a profit of XPF1.1 billion (USD10.7 million) in 2024. The Tokyo and Seattle flights are losing money. The XPF1.68 billion (USD16.4 million) lost operating the Papeete – Seattle route last year equated to 60% of the airline’s losses in 2024. Arthur D. Little says Air Tahiti Nui should axe both routes.

The report accepts the need to keep the Paris flight, which is an extension of the Papeete – Los Angeles service, given the close ties between French Polynesia and France. It considers Auckland a break-even route that could be “better optimised.”

Arthur D. Little says the airline should focus on the United States, Australian and New Zealand markets. It recommends resuming services to Sydney (which Air Tahiti Nui ended in 2009) and increasing frequencies to Auckland. This would tap into tourism traffic and also offer a one stop alternative to the non-stop trans-Pacific Australia/New Zealand – United States flights. Fiji Airways is enjoying some success doing this.

The consulting company also recommends Air Tahiti Nui start flights to Honolulu, which is well served by flights from North and East Asia. This would help offset the impact of ending flights to Tokyo, which are reportedly operating half empty.

It describes Los Angeles as the Air Tahiti Nui’s “optimal hub” on the US West Coast. While Arthur D. Little strongly encourages Air Tahiti Nui to abandon Seattle, it does support the airline flying to a second US destination. However, it isn’t quite sure where. It flags San Francisco (SFO), even though the Papeete – San Francisco route is served by United Airlines and French Bee. The company also raises the possibly of flying to Dallas Fort Worth (DFW). Arthur D. Little argues that, with a little bit of clever marketing, French Polynesia could position itself as an alternative to the Caribbean, which is well served from DFW.

In the event the Air Tahiti Nui board adopts Arthur D. Little’s recommendations, it would see an increase in the airline’s Southwest Pacific footprint with increased flights to Auckland and new and resuming flights to Honolulu and Sydney.

The consulting company also says that Air Tahiti Nui needs to think about the right type of aircraft to serve routes efficiently to “maximise the occupancy rate and the revenue per flight" and "the time of use of the aircraft."

Specifically, Arthur D. Little suggests two A321-200XLRs to service Auckland and Honolulu and three to four A330-900s to fly to the airports further afield. However, the existing B787-9s are less than seven years old. Despite this, the company says that the government must be prepared to invest to restore if it wants to restore Air Tahiti Nui to profitability.

Neither the French Polynesian Government nor Air Tahiti Nui’s board have commented publicly on the report’s recommendations.

 Photo: Boeing.