Thursday, 18 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Business

Steep tax rise not worrying travellers, says Fiji Airways

25 Feb, 2014 04:30 PM3 minutes to read
Fiji Airways last year changed its name from Air Pacific.

Fiji Airways last year changed its name from Air Pacific.

Grant Bradley
By
Grant Bradley

Deputy Editor - Business

VIEW PROFILE

Fiji Airways says the steep rise in departure tax from its home base is not putting off travellers as the airline embarks on an ambitious five-year plan to increase revenue.

Departure tax went up from just on $96 to $128 on January 1, making it one of the highest in the world and disappointing some in the industry.

Fiji Airways chief executive Stefan Pichler said the airline had at first been worried about the new fees.

"We were scared that might have influenced demand but it hasn't - there was zero impact on demand."

Advertisement

Advertise with NZME.

Pichler said the extra charge would add about 2.5 per cent to average package tour prices.

The extra income was tagged for infrastructure development, environmental projects and education.

Flight Centre's general manager of product, Simon Mckearney, says customers will not have noticed the charges as they are included in the price of package tours but it could be a deterrent for the budget-conscious.

"Fiji is always going to be a popular destination and the consumer doesn't see it when it's built into ticket cost.

"Would it drive the consumer away? Probably not but as it gets up there the other islands like the Cooks which are really competitive at the moment [will] start to [promote] their pricing," Mckearney said.

Fiji Airways last year changed its name from Air Pacific, the culmination of three years of change as it swapped its fuel-hungry Boeing 747s for more efficient Airbus A330s.

Related articles

Travel

Flight check: Auckland to Nadi on Fiji Airways

29 Jan 08:30 PM
Travel

Fiji: An offer you can't refuse

31 Jan 02:00 AM
Business

Flight Centre lands record result

26 Feb 04:30 PM
Business

Axed flight leaves Kiwi stranded

07 Jul 05:00 PM

Pichler said during the next five years the airline would concentrate on improving profit, aiming to grow from the current break-even position to profits of F$68 million ($43.6 million) by 2017.

The airline also wanted to add a new aircraft to its fleet every year, which would increase capacity 35 per cent from 1.3 million seats, and boost passenger numbers by 39 per cent over the next five years.

Advertisement

Advertise with NZME.

The airline aims to increase capacity in New Zealand by 59 per cent from 237,000 seats a year at present.

Pichler said Fiji Airways would not get drawn into aggressive discounting to fill seats. "With a better product you're always trying to get more money out of it. It's driven by the market, we're not dumping capacity, we're not discounting our product.

"We want to be in a win-win situation with everybody - we want to have a sustainable price."

Fiji Airways has altered its schedule to allow same-day connections from Auckland to Los Angeles.

While Air New Zealand remains the only airline flying directly across the Pacific, Fiji is the only other carrier flying the route daily.

Pichler said his airline was deepening ties with Qantas, which included enhancing interline agreements and lounge access.

Advertisement

Advertise with NZME.

Fiji Airways was nearing the end of a big management shakeup in which external consultants had been replaced by senior airline managers.

"You choose the right people to fit the boxes, it's a very clinical process."

Pichler had appointed Carolyne Gregory, formerly director of inflight services at Aer Lingus, to take charge of product and service and was also about to appoint a yet-to-be-named Australian as executive marketing and sales director.

The airline was also eyeing fuel and currency hedging policies.

"When you run an airline you have factors you cannot manage, fuel, currencies and the interest charged on loans. Right now the fuel price is okay, it's below our budget levels."

Fiji Airways

Advertisement

Advertise with NZME.

Largest business in Fiji and aims to build staff numbers from just over 1000 to 1300 in the next five years

The fleet

3 Twin Otters
2 ATRS
4 737s
3 A330s

Advertisement

Advertise with NZME.

Latest from Business

Premium
Business

Stress on the flight deck: The pilots who suffered most during pandemic

18 Aug 05:45 AM
Premium
Business

Turbulence ahead: Auckland Airport cites 'year of two halves', trims loss

18 Aug 05:43 AM
Premium
Business

Rocket Lab reveals more about Venus jaunt, cops downgrade

18 Aug 05:40 AM
Premium
Business

Market close: Auckland Airport's outlook drags down shares

18 Aug 05:38 AM
Business

Another property investor pleads guilty to fraud charges

18 Aug 05:37 AM

Most Popular

Judge changes little boy's name to avoid links to criminal dad
New Zealand|Crime

Judge changes little boy's name to avoid links to criminal dad

18 Aug 08:00 AM
Seally season: Seal chases cat into marine biologist's lounge
New ZealandUpdated

Seally season: Seal chases cat into marine biologist's lounge

18 Aug 06:18 AM
Labour MP Gaurav Sharma speaks out; accuses PM and her office of a 'cover-up'
New Zealand|Politics

Labour MP Gaurav Sharma speaks out; accuses PM and her office of a 'cover-up'

18 Aug 06:27 AM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP