The Otto Haleck Sr. family is forging ahead with the development of two resorts in Samoa, with one to be named after the American reality television show, “Survivor”. The family, who owns several businesses in the territory, has officially closed down its South Pacific Express airline operation.

In January this year, Avamua Dave Haleck announced the new beach resort project to be built at Fagaiofu Bay in Falelatai, which is about a 20-minute drive from the Faleolo International Airport in Samoa.

Avamua also said that the family has purchased a 240 acre property to develop the resort, with the “working name” the “LupeSina at Fagaiofu, Falelatai”.

But changes have been made to the project following the successful filming in Falelatai of the CBS television network “Survivor: Samoa”, the reality show broadcast throughout the world, bringing more attention to Samoa.

The development of this project, which was to have started a couple of months ago “was halted due to the need of Survivor to film on our site,” explained Avamua Dave Haleck last Friday responding to Samoa News inquires.

“Because of our agreement to provide our property to Survivor, they elected to stay and film in Samoa. We are pleased that we could assist and play a part in promoting Samoa to the world,” said Avamua.

“We are currently surveying the property, cutting away unwanted brush and trimming trees. We are cleaning the beach property and architects/engineers have been on site to start preliminary layout of the site,” he said. “Our intention is to develop two resorts on the property.”

He said the first resort is to be named Survivor Samoa Surf & Beach Resort and the second resort to be called Lupesina Luxury Resort, adding that the two “resorts will be developed in several phases.”

“Projected completion of the first phase of Survivor Samoa Surf & Beach Resort will be mid 2011. First phase will include reception area, two dining rooms, pool/spa and 25 to 30 beach fales,” said Avamua. “We are grateful for the support of the Honorable Prime Minister Tuilaepa Sailele Malielegaoi and Deputy Prime Minister Misa Telefoni.”

Avamua confirmed over the weekend that SPEX that first launched inter Samoa flights in December 2005 and last year moved its headquarters to Samoa, has officially shut down operations in the two Samoas.

Avamua said SPEX’s airport offices and check-in counter space at the Tafuna airport have been returned to the Department of Port Administration and as soon as the airlines’ aircraft are sold, the hanger will also be returned to the territorial government.

(Samoa News understands that Hawaiian Airlines may be taking over the large office space previously occupied by SPEX at the Tafuna airport.)

Avamua said SPEX no longer holds a Federal Aviation Administration license and there is no chance to restart SPEX soon.

SPEX chief executive officer Capt. John McNeely announced in early September that flight operations had “been placed on hold” effective with the last flight of Sept. 18.

“This decision was difficult to make, but continued economic deterioration within American Samoa and Samoa has provided no alternative,” said McNeely from Apia. “While flight operations are on hold we will explore alternatives that will allow SPEX to serve the needs of our customers.”

“Over the course of the past twelve months our economy has proved to be catastrophic for the airline business,” he explained. “First, the rising fuel costs. Although these costs are back down, we could not recover when airfares did not increase accordingly with the cost of fuel.”

“Second, the market between the Samoas experienced a substantial decline in passengers using air service. Finally, with one cannery closing in American Samoa and the other downsizing, we see a further drop in future air travel between the Samoas,” he said.

SPEX has joined a number of small and large airlines around the world forced to shut down as the airline industry faces an economic downturn, high fuel prices and a very competitive industry, said local and Honolulu industry sources.

“It’s one of the reasons that several airlines have merged with other carriers— including the major U.S. carriers Northwest Airlines and Delta Air Line,” said the Honolulu source, adding that these challenging times also resulted in the closure of Aloha Airlines.