Development Plans In The Pipeline for Fiji Airports
Chalmers: 2020 to 2021 was significantly challenging for Fiji Airports but we feel quite optimistic for the years ahead, the recovery in traffic has been very strong which is pleasing to see.
Tuesday 05 April 2022 | 09:33
Fiji Airports Ltd will be expanding its commercial activities in Nadi and diversifying its business to be more flexible with aims to promote alternative revenue streams.
This was highlighted by chief executive officer Rowan Chalmers during the Parliamentarian submission to the Standing Committee on Social Affairs yesterday.
Fiji Airports owns land primarily in Nadi which they would be developing for future use.
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COVID-19
Mr Chalmers said there was a significant decline in traffic both air movements throughout the airspace and visitors visiting Fiji.
It fell from 2.29 million to just over 400,000 so the decline in volumes had an impact not only in the business revenue but asset and balance sheet as well, he said.
“We had to move quickly to preserve the business and to ensure it survives so we took some significant measures.”
The operating cost also reduced from $73 million in 2019 to $51 million, a reduction of about 30 per cent.
“That underlines one of the challenges of operating airport businesses where our capital fixed costs are high and it’s very hard to bring it down to be in line with the volume.
“Some of the fixed costs are impossible to remove which is a challenge.”
He added that 2015 to 2019 was Fiji Airport’s golden years where revenue, profits and dividends were at the highest levels.
Manufacturing Projects
Fiji Airports spent a significant amount of money on capital projects, however it postponed most projects in 2020 to preserve cash flow.
The only two major projects that continued which started before the pandemic was the upgrade of the Nausori runway which was completed in 2021 and an ongoing project, the expansion of aircraft parking capacity, at the Nadi airport.
Mr Chalmers said there were other development works done at the outer island airports totaling $4.1 million.
“2020 to 2021 was significantly challenging for Fiji Airports but we feel quite optimistic for the years ahead, the recovery in traffic has been very strong which is pleasing to see.
“So we hope to reach 2019 level next year in terms of traffic, volumes and activities.”
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