Fiji Airways ends FHTA deal, moves to direct hotel partnerships

Fiji Airways has ended its long-standing partnership with the Fiji Hotel and Tourism Association (FHTA), saying it will instead pursue direct commercial relationships with individual hotels and resorts as part of a broader review of its business partnerships.

The national airline and the FHTA signed a memorandum of understanding (MOU) in 2023 to support the growth of the tourism sector, allowing FHTA members to access discounted airfares for international trade events and roadshows.

Fiji Airways Executive Manager Industry, International & Government Affairs & Corporate Communications Kameli Batiweti said ending the MOU formed part of the airline's continued approach to managing costs amid economic pressures.

"As part of ongoing global aviation and economic pressures, including fuel volatility, inflation, and rising operational costs, Fiji Airways continues to take a disciplined and proactive approach to managing costs and reviewing operations across every part of the business.

"This includes a broader review of the airline's commercial partnerships and arrangements, to ensure they continue to deliver genuine value and support long-term sustainability," he said.

Mr Batiweti said Fiji Airways would continue promoting Fiji's tourism despite the end of the agreement.

"This work includes moving toward more direct commercial relationships with individual hotels and resorts across Fiji, allowing for arrangements tailored to each partner's needs.

"Fiji Airways will continue to protect vital connectivity, support tourism and trade, and help keep Fiji accessible and competitive for travellers and businesses alike. The airline values its long-standing relationship with the tourism industry and looks forward to continuing to work closely with hotel and resort partners in support of Fiji's tourism sector."

FHTA chief executive officer Fantasha Lockington acknowledged the termination of the MOU.

"FHTA can confirm that Fiji Airways has advised us of its decision to discontinue its Memorandum of Understanding with the Association. We were informed of this recently and understand that the airline is reviewing its partnerships as part of its own strategic direction."

Ms Lockington said all 120 FHTA active members had been informed of the decision.

The termination comes after the FHTA rejected the Government's claim that the tourism industry supported a proposed five per cent tourism services tax to help fund Fiji Airways.

The FHTA warned the tax, announced in the 2026–2027 National Budget, would increase costs, hurt competitiveness and had been introduced without proper consultation.

Ms Lockington said suggestions that the industry had agreed to the measure were inaccurate.