Fiji Airways Unveils Details of Five Year Strategic Masterplan

Fiji’s national airline, Fiji Airways, has unveiled key details of its five-year strategic plan, which was 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 the plan.

This is the first time that a strategic plan for the airline has been developed bottom up from the management and with input from its customers, people and stakeholders.

Stefan Pichler, Managing Director and CEO of Fiji Airways, said, “This is our plan, we believe in it and we will make it happen. It is not a polished power point management consultant presentation. This is what we want to deliver by building and performing under a highly inspirational global brand – Fiji Airways!”

The airline plans to 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.

Proposed capacity increases across the regions include Asia (144%), Pacific Islands (86.6%), New Zealand (58.9%), Australia (28.4%) and Domestic (12.3%), while the current seat availability to the US remains stable (- 4.7%).

Mr Pichler said the airline will put in place an aggressive financial performance strategy to increase operating profits above FJ$100m, which have been planned assuming fuel prices and currency exchange rates at the current levels.

“It is our aim 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,” said Mr Pichler. “We need to be sustainably profitable and have a healthy cash flow to pay off our debts and fund new aircraft. Past ‘break-even’ operating results cannot be the benchmark for the future.”

Mr Pichler said 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.

“As Fiji’s National Airline we have a responsibility to provide job and career opportunities for Fijians. Our already announced staff profit share programme forms an integral part of all our financial planning as well,” Mr Pichler added. “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. 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 will be announced as and when they are finalised,” said Mr Pichler.