Airline mulls new strategy
Fjii's national flag carrier said it was open to expanding its alliance with Qantas from a basic interline agreement to a code-share deal.
The Fijian government owns 51 per cent of the airline, while Qantas has 46 per cent. The relationship between the two hit a low last year when Qantas removed its four representatives from the airline's board in response to the Fiji government making clear its intention to take "absolute control".
Chief executive Stefan Pichler said the airline would consider new routes. But it was unlikely to make major changes in the medium term to capacity on routes between Australia and Fiji. The airline has 26 flights a week to Melbourne, Sydney and Brisbane.
"We don't want to have a market share battle. The market is pretty much in a good state and a good place for all competitors there and we don't necessarily want to shake it up," he said.
Frequently Asked Questions about this Article…
Fiji Airways is preparing a five-year plan to be devised under a new chief executive. According to the article, the plan will consider new destinations and closer alliances with other airlines as part of its strategic direction.
Yes. The airline said it is open to expanding its existing alliance with Qantas from a basic interline agreement to a fuller code-share deal, which could deepen cooperation between the two carriers.
Fiji’s national flag carrier is majority-owned by the Fijian government, which holds 51% of the airline, while Qantas owns 46%.
Relations hit a low last year when Qantas removed its four representatives from Fiji Airways’ board after the Fijian government signalled its intention to take “absolute control” of the airline.
According to chief executive Stefan Pichler, the airline is unlikely to make major changes to capacity on routes between Australia and Fiji in the medium term. The focus appears to be on considered network and partnership moves rather than an immediate capacity push.
The airline currently operates a total of 26 flights a week to the major Australian cities of Melbourne, Sydney and Brisbane.
Stefan Pichler has said he doesn’t want a market-share battle. He described the market as being in a good state for competitors and indicated Fiji Airways does not necessarily want to shake up the competitive landscape.
Investors should monitor the rollout of the five-year plan under the new CEO, any moves to add destinations, and announcements about deeper partnerships such as a potential code-share with Qantas. Also keep an eye on the ownership dynamic between the Fijian government (51%) and Qantas (46%), since past tensions have affected board representation.
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