Air Fiji is the nation’s domestic carrier and its chief executive Sialeni Vuetaki warned the airline may have to close down because of soaring global fuel prices. If the airline folds, more than 200 people will lose their jobs.
Air Fiji has been involved in a dispute with the Transport Workers Union over cost cutting measures it introduced last year.
The Union’s general secretary Kamlesh Kumar has told the Radio Australia’s Pacific Beat program that Air Fiji workers have indicated they are prepared to make sacrifices to save the airline.
“But the airline needs to come and talk to us,” Kumar said. “We need to consult we are prepared and the workers are prepared to talk. We could consider all of those options, wage cuts or wage freeze and any other things, but we got to know how much the airline wants from the staff.”
Professor of Pacific Studies at the Australian National University Dr. Brij Lal said if Air Fiji closes it would be devastating for a community already under intense strain.
“This will be particularly stressful for people living on the outer islands,” he said. “I think both in terms of restricting mobility; in terms of trade and so on this is going to have a huge impact.”
Fiji’s interim government is also reviewing the operation of Air Pacific amid suggestions the national carrier is unfairly dominated by minority shareholder Qantas.
Fiji’s interim Attorney-General Aiyaz Sayed-Khaiyum said a taskforce was investigating Air Pacific due to concerns held by tourism operators, employees, businesses and the public.
“Despite owning 51 percent of Air Pacific, the government of Fiji is unable to exercise powers that it normally could as a majority shareholder,” Sayed-Khaiyum said. “For example, under the articles of association, Qantas — which owns 46 percent of Air Pacific — has veto powers in a number of key operational areas.”
Concerns included employment opportunities for Fiji citizens with Air Pacific, the need for Fiji to have direct flights to more destinations, and for the airline to be more integrated into Fiji’s economy, he said.
