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Fiji Airways extends international cancellations to end of July
May 29th 2020
Fiji Airways has extended the suspension of its international operations for another month, to July 31, as a result of collapsed demand. Read More » The airline has not operated any scheduled international passenger flights since March as border closures and travel restrictions to contain COVID-19 imposed by governments worldwide kept travellers at home.
Fiji Airways CEO, Andre Viljoen, said more cuts were likely beyond the end of July.
“Given that there is still next to no demand for international air travel in the region, regrettably, we have been forced to cancel our July schedules, with further reductions expected in August 2020," he said in a statement.
While scheduled international passenger flights were suspended, Viljoen said Fiji Airways would continue to operate cargo-only flights with passenger aircraft to keep "vital supply lines open between Fiji and its key trading partners".
The impact of the coronavirus on Fiji Airways came into sharp focus this week when the Nadi-headquartered carrier announced more than half its workforce would lose their jobs given there was no work for them either today or in the foreseeable future.
The decision impacted 758 employees, including 79 expatriate pilots and eight expatriate executives.
Those that remained with the company would have their pay reduced by 20% from next week.
Also, Fiji Airways said in the short term, retained staff would work between two and five days per week and only be paid for actual days or hours worked. Staff would be able to use annual leave in order to "top up" their weekly pay.
"Many large and respected airlines around the world are collapsing as a consequence of this unprecedented crisis. However, we will do everything within our power to ensure that Fiji Airways does not suffer the same fate,” Viljoen said.
The Fiji government, which owns 51% of the national carrier, has provided a financial life line to the carrier through sovereign guarantees to boost cash reserves and allow payment deferrals and long-term debt financing.
Fiji attorney-general, Aiyaz Sayed-Khaiyum, told the country's parliament the guarantees worth about FJ$455 million (US$205 million) were for a three-year period from May 30.
"It's so sad that we have to come to this but really
In addition to the government's 51% holding, Qantas owns about 46% of the airline and Air New Zealand about 2%. Smaller stakes in the airline, formerly known as Air Pacific, are held by the governments of Kiribati, Nauru, Samoa and Tonga.
