Competition

IT is a shame that the People of Seychelles must live through all of SPPF's mistakes and misunderstandings of what is and what is not competition. The SPPF will say that the public wanted competition and an opening of the routes, Mahe-Praslin and Praslin-La Digue. So what is the problem? Well, Competition is good and we must all welcome competition. But competition must also be fair and in the Public's Interest. Is it in the public's interest to have competition "sauvage", on a little inter island ferry route?

The small hotels of Seychelles have been menaced to death over standards over the years; to the point that now we have a better product than larger hotels. Government found it fit to regulate a few rooms. But in the ferry industry where hundreds of lives are put to risk every day, what regulations does SPPF have?

How old does a ferry have to be to ply the seas, 5, 10, 25, 50 years old?  What steps has SPPF taken to ensure the safety of the Public when someone enters the ferry business?

Can anyone enter the ferry business today and pick a route? Can prospective ferry ventures take a cement boat and convert it or a landing craft and convert it to a passenger ferry? Can we use schooners? Can a schooner take 1/2 passenger and 1/2 dry goods on their route like in many countries? Is it right for someone to enter the ferry business and his identity remains a secret to the Public?

Where are the standards for free Competition in the ferry business SPPF? You have none, because you are too depressed to think of any! Competition is not a free for all SPPF. It is about everyone competing from a position of fairness, subject to applicable regulatory mandates that ensure public safety and welfare. "Position of Fairness" means either everyone pays for fuel in euros or no one does.

It means everyone has equal access to docking space or no one does. It also means you don't interfere in a business because someone is succeeding SPPF. As a person succeeds, encourage him to excel. Early signs of success are evidence that the person behind a project has what it takes, to make things happen.

In any society, these types of people are as rare as the most precious diamond found in the mines of Botswana. Allow them to shine, stupid, don't crush them. Why? Because as they shine, a bad administration like yours look good.

Who Wins, Who Looses

As the ferry wars play themselves out, it will not be difficult to know who wins and who looses. Air Seychelles will be the first and biggest looser. Under former Captain Savy cum Colonel-Executive Chairman Savy, Air Seychelles' historically most profitable route was Mahe-Praslin route. His Twin Otters have 16 seats on them. The Shorts SD3-60 has a bit more than 30 seats. In terms of trip capacity, Air Seychelles competes now against 350 seats on Cat Coco plus 157 seats on Praslin Express, 507 seats per trip. Air Seychelles is simply out performed by the ferry boat business again and again, even if a boat is alleged to be 17 years old or older.

Furthermore, while Air Seychelles is outperformed with the new entry, SPPF has been caught with its pants down in the middle of Victoria. Why? Because while we now have 507 ferry seats from Mahe to Praslin, we have 770 less hotel rooms for Guests. What happened to all the experts in National Planning Development? Did the Architect miss something again? Of course, as SPPF falters, we all loose, even the ferry operators.

Contributed

May 23, 2008
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles