soars higher
p. 33 · Read in the full issue
Air Pacific soars higher
AIR Pacific, Fiji’s national airline, is eyeing flights to Korea. And flights to
Taiwan and Hong Kong are also
possibilities. But these are long-term plans, says the airline’s managing direc tor chief executive and chief executive Andrew Drysdale. In the short term, the target is another flight to Japan to Osaka in addition to the existing one to Narita. The Osaka flight is likely to begin some time next year.
The airline, at the moment, uses three types of aircraft for its international and "egional services the 8747 (436 Dassengers), 8767 (212 passengers) and
3737 (108 passengers} flying from
to Melbourne, oydney, Brisbane,
~nd, Christchurch, Tokyo, and
hroughout the South Pacific. Also there ire flights direct from the capital Suva to ~nd and the island nations.
Drysdale predicts a growth of between hree and four per cent per annum for Air on its existing Australian, New Zealand, regional and Tokyo routes. “The iddition of Osaka next year will see a übstantial increase in Japanese carriage,” ays Drysdale. “In the longer term we are ooking at Korea and to a lesser degree faiwan and Hong Kong. We are also
continuing to keep Los Angeles under review.’
Last year, Air Pa cific moved its headquarters from Suva to Nadi where the international airport is situated.
The move, Drysdale says, has help the company improve its services to customers. “The move to Nadi has help us to focus our
manpower and resources on our oper ational hub,” says Drysdale. “It has also enabled us to commence the maintenance of all three aircraft type where in the past 8767 and 8747 maintenance was carried out overseas. In addition to this we have had the opportunity for improved customer service levels and have seen substantial increase in productivity of our employees.”
Drysdale, 48, took over the reins at Air Pacific after more than 15 years in the engineering department where he started out as an apprentice in 1964. He later worked for Blue Lagoon Cruises for eight years before returning to the national airline as chief executive officer in April
1988. Like other businesses, Air Pacific too has had its share of ups and downs.
Drysdale, in a report on the airline, says “After a series ©flosses which began in 1979 and culminated in the worst loss in the airline’s history of $10,865,000 in 1984/85, the company achieved a small profit in 1985/86, and a record profit of sl.sm in 1986/87. The record profit was repeated for the year ending March 31, 1988 at $2.4m including abnormal items and in 1989 at s9.lm with no abnormal items.
“The 1989/90 year saw a remarkable $ 17.4 m operating profit. The effects of the Gulf war, extreme fuel price increases and the recession in the major markets resulted in a decline in operating profit for the 1990/91 year to s4m. However, this waas supported by the gain on sale of the 8737 to provide a total year end record after tax profit of $ 17.1 m. Continued recession and the effects of the Australian aviation deregulation adversely affected the 1991/92 year. However, a credible $3.9m operating firofit was recorded. The company nas now ully utilised brought forward tax losses and paid income tax to the Fiji government for the first time in 1990 on the 1989/90 profits.
Tax due on the 1990/91 year will amount to sl.Bm. The 1992/93 year saw yet another profit of $2.7m.
“The company’s cash situation is now positive with in excess of ssom invested in Fiji. However, the cost of thye Nadi base (s2om) and the 1996 8767 aircraft will require approx s2l2m in capital invest ment over the next five years. This is a major commitment and the company is currently studying how this can be achieved. This problem of capital needs is one of the two major problems facing the company (the other is the supply of manpower skills).” □
Andrew Drysdale: