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🇫🇯 Fiji /Economy & Trade

Fiji Airways investment and flights under scrutiny amid fuel crisis

From FBC News · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Fiji Airways' investments and flight operations are under review due to the ongoing fuel crisis.
  • The airline faces scrutiny over its investment in the Sofitel Fiji Resort & Spa and its route optimization.
  • The government is discussing cost-reduction measures with the airline's board and management.

Fiji Airways' financial strategies, including its investment in the Sofitel Fiji Resort & Spa and its operational efficiency, are currently under scrutiny amid the global fuel crisis. The national carrier's flight routes and frequency are also being examined, according to Finance Ministry Permanent Secretary Shiri Gounder.

Fiji Airways needs to look at ways it can reduce costs in light of the 5% tourism tax being introduced to support the airline and the $200 million loan guarantee by the State for the national carrier.

— Shiri GounderThe Finance Ministry Permanent Secretary highlighted the need for cost reduction measures at Fiji Airways.

Gounder addressed concerns at a Dialogue Fiji event, responding to questions about the airline's structure and the fairness of a new 5% tourism tax designed to support Fiji Airways. He indicated that the government, as the largest shareholder, is actively engaged in discussions with the airline's board and management to identify cost-saving measures.

Government, as the largest shareholder, was having discussions with the Fiji Airways Board and management in terms of cost-reducing measures.

— Shiri GounderGounder confirmed ongoing discussions regarding cost-saving strategies for the airline.

These discussions encompass a re-evaluation of the airline's significant investment in the Sofitel Fiji Resort & Spa, as well as optimizing flight schedules and destinations. The aim is to ensure the airline's financial viability while also considering the broader economic impact on the tourism sector, which is crucial for Fiji's economy.

These included rethinking their investment in the Sofitel Fiji Resort & Spa and optimisation of flights, routes and frequency.

— Shiri GounderHe specified areas under review, including the resort investment and flight operations.

The government's commitment to supporting the tourism industry is balanced with the need for Fiji Airways to operate efficiently and reduce costs. This review is part of a larger effort to navigate the challenges posed by the fuel crisis and ensure the long-term sustainability of both the airline and the nation's vital tourism sector.

We have to holistically look at how the State supports the tourism industry and at the same time ensure it is running a viable national airline.

— Shiri GounderGounder emphasized the need for a balanced approach to supporting tourism and ensuring the airline's viability.
DistantNews Editorial

Originally published by FBC News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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