For anyone who was caught up in the major flooding in Fiji or wondered just how much damage the scenes of destruction and stranded travellers might have done to its tourism trade, the profit results announced today by Air Pacific from airline operations rather than tourism show how a change of management can overcome the odds.

Air Pacific, which will rebrand itself Fiji Airways next year as it renews its fleet with A330-200s has reported an operating profit $9.078m  in the year to 31 March in Australian dollars compared to an operating loss of  $2.03m for the previous financial year.

However the group’s results, which include its substantial exposure to a luxury resort were hit hard by the floods which wouldn’t surprise those whose views of what happened in Fiji in the last year were framed by a huge natural disaster which caused immense dislocation and losses for Fijians, including those dependent on agriculture.

This is how Air Pacific  summarised the financial results.

·         Air Pacific Ltd. reported an operating profit of $16.5m ($9.078m AUS), compared to an operating loss of $3.7m ($2.03m AUS) for the previous financial year
·         Air Pacific Group reported an operating profit of $13.4m ($7.372m AUS) compared to an operating loss of $4.3m ($2.36m AUS) for the previous financial year. (Air Pacific Group includes the national airline, its wholly owned subsidiary Pacific Sun, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island).

On a net basis, Air Pacific Ltd. reported an after tax statutory profit of $11.4m ($6.272m AUS) ($24.8m for previous fiscal year), and Air Pacific Group reported an after tax statutory profit of $10.7m ($5.886m AUS) ($25.3m for previous fiscal year).

Only days before the end of it last financial year the Fiji regime ended the Qantas decision making roles in Air Pacific’s management, and drew attention to its displeasure at its facing competition from Qantas subsidiary Jetstar.

In a statement the Fiji government claims that Qantas since 1998 has exercised effective control over the carrier through super majority and veto rights.

It said the move would bring Air Pacific into step with international laws and practices.

The decree said that areas that included the appointment of the Chairman, Deputy Chairman, annual operating budget, any expenditures, new air routes, variations to schedules, management appointments and ‘others’ would all revert to the control of the regime.

“While Qantas currently has veto power over most areas of Air Pacific’s operations and business decisions, Qantas also competes directly against Air Pacific through its wholly-owned low-cost carrier subsidiary, Jetstar, which flies overseas visitors to Fiji from Sydney,” the statement said.

 

Qantas had been increasingly unhappy on the public record with the situation at Air Pacific in recent years, and has actively sought to sell its equity in the carrier, which flies to Australia, the US, NZ and adjacent Pacific island states.