SUNBIZ

New Record For Fiji Airways

The Fiji Airways Group has announced its highest ever profit before tax of F$95.8 million for the fiscal year that ended December 31, 2017, a 13.4% increase over the previous
27 Mar 2018 12:04
New Record For Fiji Airways
Artist’s impression of a Fiji Airways 737 Max 8, which the airline starts taking delivery of this year.

The Fiji Airways Group has announced its highest ever profit before tax of F$95.8 million for the fiscal year that ended December 31, 2017, a 13.4% increase over the previous financial year. The Group comprises of Fiji Airways, Fiji’s National Airline; its subsidiaries Fiji Link & Pacific Call Comm. Ltd; plus a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island.

The announcement was made at the airline’s Head Office in Nadi by the Attorney General and Minister responsible for Civil Aviation, the Honourable Aiyaz Sayed-Khaiyum.

 

Results Highlights:

Group revenue was F$929 million compared to F$825.3 million for the previous year ended 31st December 2016 (up by 12.5%)

Group profit before tax was F$95.8 million compared to F$84.5 million for the previous year ended 31st December 2016

The Group carried 1.6 million passengers compared to 1.4 million for the previous year ended 31st December 2016 (up by 14.3%)

Profit-share for non-management staff and minimum bonus for management increased by 10% compared to the previous year.

Based on the PwC audited financial statements for 2017, the Group has announced the following profit-share and management-bonus arrangements:

Eligible non-management staff of Fiji Airways and Fiji Link will each receive a profit-share payout of F$4,400*

Eligible Fiji Airways and Fiji Link managers will each receive a management bonus of no less than $9,900*

This is in addition to quarterly bonuses of up to $1,200 per year that non-management staff of Fiji Airways and Fiji Link already stand to earn for achieving key objectives.

Andre Viljoen, Fiji Airways Managing Director and CEO, said: ‘To achieve a fourth year of successive record profits is a massive achievement by the entire team of the Fiji Airways Group.

“I couldn’t be more proud of the way the team surpassed all key metrics for revenue, passenger and network growth, efficiently navigating through a challenging operating period in which cost control was crucial. 2017 saw the achievement of numerous milestones for the Group. The team increased the size of the fleet, launched a new route, increased frequencies on key long-haul routes and opened a world class lounge at our home airport – Nadi.

“The result also wouldn’t have been possible without the support of our stakeholders. Chief among them are our customers – the Fijian people and Government. We are grateful In particular for the consistent support of our Prime Minister, the Honourable Voreqe Bainimarama, and our Line Minister, the Hon. Aiyaz Sayed-Khaiyum. We’re also very grateful for the guidance and support of our Chairman Mr. Rajesh Punja and our Board of Directors.”

Mr Sayed–Khaiyum commended the airline staff, management and Board for again building on the Fijian national carrier’s success story:

“For a country that’s very heavily dependent on tourism, it is critically important for us to have a very healthy national carrier. This result is a proud achievement not just for the airline but for the entire nation. Fiji Airways has again proved itself to be a star player in Team Fiji. And the warm congratulations of every Fijian goes to the Fiji Airways management and staff. You have become role models for every enterprise in Fiji of what can be achieved in our workplaces with co-operation, collaboration, focus and hard work.”

“When the Bainimarama Government was appointed in 2007, Fiji Airways was in dire straits. But with the right policy settings, a new approach to industrial relations, right Government support, the airline has not only been saved but is flying higher and further than ever before.

“We wish to especially thank the Fiji Airways workforce for your dedication. The healthy profit-share you are now receiving is only possible when management and staff share the same goals.”

In 2017, 86% of the airline’s 1,384 staff completed Phase 1 of the UP! Your Service culture-building programme designed by world renowned service expert Ron Kaufman. This resulted in Fiji Airways reducing customer complaints by 66% while increasing compliments by 22% compared to the previous year; as Fiji Link increased compliments by 74%. 183 staff were recognised for ‘Stepping UP’ for customers or colleagues and were awarded Bronze Stars, while four staff were awarded the coveted Silver Star.

Mr. Viljoen said the outlook for 2018 was challenging given the pressure of fuel price increases, increased competition, and volatility of the US dollar. “Fuel prices will continue to be a challenge for all airlines and we will not get complacent with the fiscal discipline required to meet our financial targets.”

 

Feedback: maraia.vula@fijisun.com.fj

Subscribe to E-Edition
pacific island top up
Rewa Fiji Dairy Ltd
Subscribe-to-Newspaper
Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: