Fiji Airways boss responds to accusations, outlines future

Transcript

Fiji Airways has responded to criticism that its operations are not transparent and accountable.

After accusations from political parties about the purchasing of new Airbus planes, the new CEO Stefan Pichler has outlined the company's strategy.

He took over as CEO at the beginning of September, after the resignation of Dave Pflieger, who departed in March.

Alex Perrottet has more:

The last 12 months has seen rapid changes in Fiji's national airline. A brand change from 'Air Pacific' back to the original 'Fiji Airways' was completed and new Airbus planes began arriving amid much fanfare in March. The timing of their arrival and the departure of Dave Pflieger as CEO led to political parties demanding answers from the government. The spokesperson of the People's Democratic Party, Nirmal Singh, says he has spoken to exporters who complain that the long-haul flights on the new Airbus planes have much less cargo space than the Boeing planes.

NIRMAL SINGH: We felt that if you look at the cargo space, and I understand the Airbus doesn't have that capacity to carry the cargo to their destination. I also understand the Nadi-Los Angeles flights are basically full and they even don't have sufficient space in the Airbus to even carry the luggage.

Mr Pichler says that decision was made long before he came to the company, but he did say the new planes had certain benefits, such as bringing down emissions, which have recently been blamed in a US report for damage to the atmosphere in the Pacific.

STEFAN PICHLER: Changing the long-haul fleet from 747s to A330s, because the A330s burn considerably less fuel than the 747s which have four engines. So we have made a significant contribution. But nevertheless, we are looking into fuel-saving programmes et cetera to limit fuel burn and also in total to limit waste and emissions in general.

But the Labour Party leader, Mahendra Chaudhry, has other criticisms, and says there needs to be an independent investigation.

MAHENDRA CHAUDHRY: Until there is an independent assessment and investigation into it we do not know what is the truth behind it. Are these planes really brand new planes or are they refurbished second-hand planes?

Mr Pichler confirmed the planes are new. Mr Chaudhry and Mr Singh demanded answers about how the purchase was financed. Mr Pichler said setting up Waqavuka Financing was necessary to obtain a loan from a German bank to buy the planes. He said it will close as soon as the company repays the loan, and he also confirmed the Fiji pension fund loan is guaranteed, and pensions are safe. Mr Pichler says more Fijians should be employed by the company, which needs to attract the 50-plus pilots working for carriers such as Emirates.

STEFAN PICHLER: We have to create more career systems, or better career paths in some areas of the business like pilots and cabin crew, for Fijians, and we have to coach them, we have to develop them and we have to provide job opportunities.

Mr Pichler also says the company needs to complete the re-branding, and that painting the logo on the planes is only the first step. He says a management re-vamp is underway to address the issue of flight delays, which he says will be fixed by the end of the year.