Air Pacific

Qantas-Air Pacific used as proxy fight between Australia and Fiji

Qantas and Air Pacific have been caught in a proxy fight between their home countries as Australia condemns the ongoing lack of democracy in Fiji since military leader Frank Bainimarama took control of the island nation last decade. Bainimarama in turn has had the civil aviation ministry pass a decree requiring, amongst other statutes, Fijian airlines to have local citizens comprise two-thirds of the board. Fiji has a 51% stake in Air Pacific while Qantas holds a 46% stake and accounts for four of the nine board seats.

While it is apparent Qantas will have to relinquish a board seat to comply with the new regulations, the carrier for some years has been seeking to sell its stake – and would surrender all board seats – but Fiji is unwilling to spend the AUD15 million that Qantas' stake is valued at. Fiji is also irritated that Qantas' LCC Jetstar serves Fiji, to Air Pacific's detriment, although Virgin Australia has significantly more capacity.

Air Pacific ‘will not fail’ as restructuring continues; ownership questions remain

Air Pacific, Fiji’s national carrier, stated that despite recent challenges and a number of restructuring changes, it aims to return to profitability and maintain operations. High fuel prices and increasing competition from LCCs, including Virgin Australia and Jetstar, has hurt Air Pacific, with the airline reporting its largest full-year loss last year at FJD90 million (USD51 million).

LCCs ready for take-off; carriers prepare for Boeing B787 deliveries

LCC start-ups dominated airline news this week. Air Canada revealed it is drawing up a business plan to launch an LCC in response to its fast-growing low-cost rivals such as WestJet, Porter Airlines, Air Transat and Sunwing in the Canadian market, according to reports.

Air Pacific’s trouble in paradise

Air Pacific was established and started operations in 1951, under the name of Fiji Airways. Qantas purchased Fiji Airways in 1957, but in 1960, when Fiji gained its independence, the Fiji government took an equity stake, together with Air New Zealand (then TEAL) and British Airways (then BOAC).