Arrividerci Alitalia. Bonjour Fralitalia

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Last week, as two European airlines – one of them a “flag carrier” – collapsed, few would have noticed a small airline on the other side of the world reporting a profit.  It was Polynesian Blue, hardly a major company, but the event was significant in one respect. For many years, the government of tiny south Pacific nation, Samoa, had squandered much of its annual GDP running an inefficient and unsuccessful flag carrier. In October 2005, Australian airline, Virgin Blue, became a 49% shareholder in a new joint venture with the government and took over operations of the carrier. Tourism traffic has increased nearly 50% annually, the airline has repaid an establishment loan from the government and is making money!