Fiji Airways Announces Details of Five Year Masterplan
Fiji Airways Announces Details of Five Year Strategic Masterplan
Focus on network and fleet expansion, growth of 35% in available seats, increasing passenger numbers and operating profits above $100m (FJD)
Friday 10 January 2014: Fiji’s national airline, Fiji Airways, has today announced key details from its five year strategic plan which had been approved by the airline’ s Board mid-December 2013.
Expanding the airline’s route network through key airline partnerships, increasing operating profits and passenger numbers, as well as growing the number of aircraft and available seats, are just some of the key focus areas for Fiji Airways within this plan.
Stefan Pichler, Managing Director and CEO of Fiji Airways, says that this is the first time a strategic plan for the airline has been developed bottom-up from the management, and with input from its customers, people and stakeholders.
“This is our plan, we believe in it and we will make it happen. This is what we want to deliver by building and performing under a highly inspirational global brand – Fiji Airways!”
The airline will increase its fleet size by 25% with the purchase and/or leasing of four new aircraft, including one A330-200, two B737-800s and two ATR72-600s (one as a replacement for an ATR 42-500), by 2017.
The additional aircraft will support the company’s plans to grow the number of available seats across all markets by more than a third (35%), and an increase in passenger numbers by 39%, over the next five years.
New Zealand again will play an important role as a key market for Fiji Airways with a capacity increase of 58.9% proposed between now and 2017.
Proposed capacity increases across the other regions include Asia (144%), Pacific Islands (86.6%), Australia (28.4%) and Domestic (12.3%), while the current seat availability to the US remains stable (- 4.7%).
Mr Pichler says the airline will put in place an aggressive financial performance strategy to increase operating profits above $100m (FJD), which has been planned assuming fuel prices and currency exchange rates at the current levels.
“Ii is our aim is to be a world class boutique airline, and we must match that with an ambitious but solid financial growth plan which expands on current successes and takes our airline to a new level.”
“We need to be sustainably profitable and have a healthy cash flow to pay off our debts and fund new aircraft.”
Mr Pichler says becoming financially stable and re-investing in the company’s fleet is imperative for Fiji Airways’ future, but key to the future plans is also to build and maintain a strong and loyal workforce.
“We have plans to increase our total staff numbers by 28.5% and will invest in a trainee programme and training so we can qualify local people in roles across the company,” says Mr Pichler. “In addition, our already announced staff profit share programme will form an integral part of all our financial planning.”
“Part of our vision for 2017 is to be the employer of choice for Fijians.”
The airline has already announced three schedule changes resulting from the plan - new direct Sydney-Suva and Apia-Suva services to open up the East Coast to holiday makers and business travellers alike; and an amendment to some Auckland – Nadi departure times to improve ferry and flight connections with the outer islands.
“In terms of our network expansion plans, we will not be taking a ‘trial and error’ approach. We are focused on the deliberate selection of new routes together with the best airline partnerships. Timing of new route introductions will depend on detailed scheduling together with interlining and codesharing, and we will announce these as they are finalised.”
Mr Pichler thanked the Fiji Airways management team which has worked hard to prepare the strategic masterplan that will grow the airline’s network and help drive tourism and the economy in Fiji.
“Since 1st January 2014, the clock is ticking. Our team is committed to succeed. We will make the future happen for everyone in this great airline, in this beautiful country.”