Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fiji Airways looks to latch on to NZ recovery in growth plan

Fiji Airways looks to latch on to New Zealand recovery in growth plans

By Paul McBeth

Jan. 10 (BusinessDesk) - Fiji Airways, the Pacific nation’s national airline, wants to latch on to New Zealand’s accelerating economy as part of a push to more than double operating earnings over the next five years.

The Nadi, Fiji-based company plans to add four new planes, lifting capacity by 35 percent and expand its workforce by 29 percent in the next five years as it seeks to build itself into a world-class boutique airline. New Zealand is a key plank in the strategy, with the airline aiming to boost capacity 59 percent by 2017 from its current 237,390 annual available seats.

Chief executive Stefan Pichler, who joined the airline last September, told BusinessDesk the company anticipates increased tourism spurred by New Zealand’s economic growth, and is considering increasing its Nadi-Auckland and Suva-Auckland routes, or introducing a new destination.

“We don’t intend on grabbing market share,” he said. “This plan is driven by underlying market analysis and growth forecasts of GDP growth, traffic growth between New Zealand and Fiji for the next couple of years.”

New Zealand government figures show annual short-term departures to Fiji climbed 3.8 percent to 110,060 in the year ended Nov. 30 from a year earlier, and were up 8.9 percent from 2011.

The strategic plan, which was signed off by the airline’s board in December, intends to lift available seat numbers on Asia routes by 144 percent, Pacific Islands by 87 percent, Australia by 28 percent and on domestic routes by 12 percent. Capacity on US routes is expected to fall 4.7 percent. The airline’s current capacity is almost 1.32 million.

Fiji Airways is targeting operating earnings of more than F$100 million from the five-year plan, a level Pichler said is more than double its current level, without being specific. The airline reported a net profit of F$17.8 million in the year ended March 31, 2013 on revenue of F$690.6 million.

Pichler said he aims to build the company’s brand, which officially switched to Fiji Airways in June last year, as it becomes “more customer-centric.”

“We need to be sustainably profitable and have a healthy cash flow to pay off our debts and fund new aircraft,” he said.

Fiji Airways underwent a turnaround under previous chief executive Dave Pflieger after sustaining losses from a burst of competition from the arrival of Australian budget carriers Jetstar and Virgin.

The airline intends to expand its workforce, beefing up the number of local employees, in a bid to be “the employer of choice for Fijians,” and Pichler says the targeted growth by almost a third is “digestible” by the country.

That includes reducing its reliance on expatriates, and Pichler said he wants to reverse the pilot ratio of locals to expats which is currently at one-third locals to two-thirds expats.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news