Calls grow for Fiji Airways review

Fiji Airways is under pressure to re-evaluate its investment strategies as escalating operational costs strain the airline's finances. Marc McElrath, Managing Director of McDonald's Fiji, voiced concerns at a post-budget forum, urging a reassessment of the airline's tourism investments and questioning its focus on cost management.

The airline has cited rising operational expenses, including an additional $150 million in fuel costs over the past three months compared to the previous year. These pressures have led the government to implement a five percent tourism services tax to provide financial support to Fiji Airways.

However, questions are being raised about the airline's own spending and investment decisions. Permanent Secretary for Finance Shiri Goundar acknowledged the need for Fiji Airways to reassess its operations and investments. "We need to rethink about its investment in Sofitel. Can it be done now? Unfortunately, it’s too early. But we need to start thinking, planning, evaluation, and eventually a decision on Sofitel. Secondly, we need to rethink about our flight routes and fleet," Goundar stated.

Fiji Airways has declined to comment on the matter, citing confidentiality requirements. The airline's financial challenges and the government's support measures highlight ongoing discussions about its strategic direction and cost management.

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We need to rethink about its investment in Sofitel. Can it be done now? Unfortunately, it’s too early. But we need to start thinking, planning, evaluation, and eventually a decision on Sofitel. Secondly, we need to rethink about our flight routes and fleet.