Fiji coup cost Air Pacific millions
A Report by Michael Field of Fairfax Media says that Fiji’s last coup has cost its international carrier Air Pacific $F70 million ($NZ59 million), the airlines just published annual report says.
Airline CEO John Campbell said their revenue was affected by fuel costs, high airport fees and expensive bird strikes but the December 2006 coup was a heavy cost and continued military rule would remain a “significant current barrier to improved profitability”.
He said tourist arrival numbers were lower and the airline had to discount airfares in a bid to attract visitors.
Its Fiji-Japan route was performing poorly and was struggling.
“Each Japanese visitor arriving into the country has the equivalent of a $350 subsidy from Air Pacific, this being the equivalent loss per passenger incurred in the provision of these services.”
Campbell said Japanese travellers were “extremely conservative and at the first sign of political or civil disruption major tour operators in Japan suspend sale of or cease to market holiday products to affected destinations.” “This occurred for Fiji and it typically takes a year to obtain recovery.”
Campbell made no mention of an incident in March last year when a drunk Fiji soldier on a flight from Japan exposed himself and then urinated on a Japanese woman in her seat. The incident made major headlines in Japan.
Adding to Air Pacific woes include bird-strikes at Nadi International Airport, with Campbell saying it had added $14.6 million expenses and disruptions to flights.
Air Pacific links Fiji with Australia, New Zealand, Japan and Korea as well as Pacific neighbours.
The Fiji Government owns 51 per cent of the airline with Qantas holding a 46.32 per cent share. Air New Zealand owns 1.9 per cent of Air Pacific.
A Report by The Mole and Fairfax Media
John Alwyn-Jones
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