Fiji Airways Group announces a record profit for 2017

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 (legally known as Air Pacific Limited) 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 Fijian 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.

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.

The airline achieved a number of other major milestones in 2017. These include:

· Concluding a landmark, highly beneficial deal for the acquisition of five brand new Boeing 737 MAX 8 aircraft to replace the aging Boeing 737 NG aircraft. The first and second B737 MAX 8 aircraft will be delivered in November and December 2018 respectively

· Opening of the Fiji Airways Premier Lounge, a world class Business Class Lounge at Nadi International Airport, which has been extremely popular with guests (having a 2018 Net Promoter Score of 86)

· Launching twice-weekly services to Adelaide, Australia, and increasing seasonal frequencies to Singapore and San Francisco (now an year-round service)

· Announcing, and commencing sale of, direct flights between Nadi and Tokyo-Narita beginning July 3 2018.

· Launching the revolutionary Resort Check-In product, allowing guests to check in for their flights from the Sofitel Resort and Spa on Denarau Island.

· Upgrading the Premier and Priority Check-in counters at Nadi International Airport, and progressively rolling out Kiosk Check-In at various airports

· Signing a number of codeshare agreements to increase the total number of destinations on the network to 106 by the end of 2017. New codeshare agreements were signed with Jet Airways, Hong Kong Airlines and Solomon Airlines while codeshare agreements with Qantas and Cathay Pacific were extended

· Completing the Hay Job Grading and Remuneration System as a Job Evaluation Exercise, resulting in 460 staff (65 % of those eligible for review) getting pay increases based on market rates

· Finalising the selection of two CAE Full Flight Simulators (for the Boeing 737 MAX 8 and Airbus A330 aircraft) for the Fiji Aviation Academy, and starting construction on the Academy site at Namaka, Nadi

· Embarking on an evaluation campaign to select a wide-body jet aircraft type to augment and/or replace existing Airbus A330 fleet

· Finalising a deal with Viking Air Ltd for three brand new DHC-6 Twin Otter aircraft and completing entry into service for all aircraft within eight months

· Launching the Bula Bid “Upgrade Now” system allowing customers to bid online for a Business Class upgrade, and prior seat selection

· Having Inflight Magazine ‘FijiTime’ being recognised by World Travel Awards as Australasia’s Leading Inflight Magazine and celebrating the recognition of Fiji Airways by APEX as a 4-Star Major Regional Airline

· Introducing a dedicated Premier Service Team to look after VIP Customers and Tabua Club Members travelling in Business Class

· Contributing to numerous environmental and conservation initiatives, including planting over 5,000 trees as part of the ‘Every Takeoff…One Tree’ initiative, and supporting Fiji’s Presidency of the COP 23 Forum.

· Announcing the largest corporate sponsorship in the history of Fijian sport with a major naming rights sponsorship of all Fiji Rugby representative teams.

 

* Subject to tax and superannuation deductions as required

Top Photo: Fiji Airways.

Fiji Airways aircraft slide show:

Bottom Copyright Photo: Fiji Airways (2nd) Boeing 737-86J WL DQ-FJM (msn 37754) NAN (Rob Finlayson). Image: 934635.

Named "Mamanuca Islands"

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