12/23/2005: 
Nauru
Air Nauru Grounded!
from New Straits Times of Malaysia (via a tip from blkdrgn)
The Import-Export Bank of the United States has, after getting the OK from the Australian Supreme Court, has seized Air Nauru's only airplane. Air Nauru serves as the only air link to the rest of the world for Nauru, Kiribati, and other islands in the region. The government is scrambling to make deals with other airlines to help with stranded passengers and supplies.
The Import-Export Bank of the United States, according to their website, "is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets." Why is it in the interests of the American government to stop flights to Nauru during Christmas and New Years?
You can listen here to a Radio Australia interview with Dr Kieren Keke, Nauru's Minister for Transport.
More
Island's only plane seizedSYDNEY, Mon.
The remote Pacific island state of Nauru was searching for a new air link today after being cut off from the world by a US bank's seizure of its only aircraft.
"We're looking for replacement capacity, which could come in the form of a new aircraft or it could come in the form of other airlines assisting us," Air Nauru chief executive Geoff Bowmaker said from his Melbourne base.
The island — midway between Guam and Fiji — was so remote that travel by boat to the nearest country that had an airline was not feasible, he said.
Air Nauru's sole plane, a Boeing 737-400, was seized by the Export-Import Bank of the United States in Melbourne yesterday, after an Australian court gave the go ahead.
The tiny island, whose people were once among the richest per capita in the world, had failed to make payments on the aircraft since 2002, said the bank, which is the official export credit agency of the US.
The 7,500 residents of Nauru, a 21 square kilometre coral atoll, were once among the world's wealthiest due to the export of phosphates, mostly from bird droppings.
But the reserves are almost exhausted and with earlier wealth squandered through corruption and mismanagement, the country is virtually bankrupt.
Nauru claimed in court that the US had promised support for aircraft financing in return for its help in gathering foreign intelligence, Australia's AAP news agency reported.
The Washington-based bank said in a statement that it "appreciates the difficulties that the court's decision presents to Air Nauru and the Government of Nauru.
"However, this action follows numerous unsuccessful attempts to negotiate a resolution and is now unavoidable in order to protect the interests of US taxpayers." — AFP
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