Fiji Airways challenges, learnings
COVID-19 changed a lot of things in Fiji and around the world including businesses to think outside the box.
Adversities emanating from the pandemic had a drastic impact on the national air carrier – Fiji Airways – whereby all flights were ceased as a result of closed international borders and travel.
Fiji Airways managing director and chief executive Andre Viljoen shared some of these challenges and the strategies they took at the first day of Top Executives Conference (TOPEX) 2022 at the ShangriLa Yanuca Island yesterday.
Speaking on the topic “Leadership in Adversity: Changing the Narrative” Mr Viljoen said one of their biggest challenges or adversities was their business model which had to be changed for the airline to improve its services and financial performance.
With flights on halt and international travel suspended Mr Viljoen said they still had to pay close to $39 million to $40 million on a monthly basis.
According to Mr Viljoen Fiji Airways was classified as a second tier airline and far away destination-based airline.
“And because we are second tier airline we do not get to set the prices and we only follow the set prices,” he said.
He said Fiji Airways did not have any market power and had a limited market power which meant it had to take the prices set by the first tier airlines.
Some other disadvantages or challenges faced by the company included currency exchange rates.
He said they had increased their revenue post COVID, however, while their revenue was earned in Australian dollars, their expenses were paid in US dollars.
Fuel costs had also plagued the airline company, however, he said with their more adaptable, persistent and resilient team, they were able to pivot operations.
He said through the various improvements to their business model they were able to improve services and upgrade from a three-star airline to a four-star airline now.