Fiji’s international airline Air Pacific raises fares by 4%

Air Pacific, Fijis international airline, is raising fares from Fiji to Australia and New Zealand by about 4%.The increase will be effective for tickets issued from June 11, 2008.

Air Pacific Limited says it was forced to increase the fares as it can no longer maintain current fare levels with the price of aviation fuel at a record high.

Air Pacific, based in Nadi island, operates domestic and international and services around the Pacific and to North America and Japan. The airline, founded by Australian aviator Harold Gatty, started operations in 1951.

In a statement, John Campbell, managing director and chief executive officer of Air Pacific Limited, said: “Though the airline had effective internal cost management and fuel hedging, it will come as no surprise that Air Pacific can no longer sustain current fare levels with the price of fuel reaching record highs.”

“While the general fare increase will result in travellers paying slightly more for their journey, Campbell continued, “Air Pacific has overhauled its fare structure to allow more flexibility for those who need it and created discounted Business Class levels for those who want more room and luxury.”

Air Pacific had said earlier that it would “broaden its horizons” and was planning to fly to new destinations as well as buy 8 new aircraft. The airline proposes to invest $2.6 billion when it extends its fleet to include 3 more Boeing 787 aircraft.

With the proposed overhaul of a number of aircraft in its current fleet and the extension of leases of its Boeing 747 and Boeing 767 planes, Air Pacific will be free from flight disruptions, Air Pacific’s chief executive officer claimed in the statement.

At present, Air Pacific operates 22 services weekly to the Australian cities of Brisbane, Sydney and Melbourne as well as twice-daily services to Auckland (New Zealand) and twice-weekly services to Christchurch (New Zealand).

According to John Campbell, while the general increase in fares “would result in travelers paying slightly more for their journey,”  the airline has “overhauled its fare structure to allow more flexibility for those who need it.” There are also discounted business class levels for those who want more room and luxury.

“Additionally, we continue to provide great value fares through our website – where the fare increases are as little as 1%, he added.

The revised Bula Fares, according to Air Pacific, include the following:

• All airfares are combinable, meaning that travellers could fly in one direction on a certain fare type and fly the other on another fare type, even at discounted levels
• Allowing unlimited changes without change fees.
• Introduction of the special ‘Get Packing’ fare sold only on the airline’s website.
• A new discounted business class fare, the ‘Biz Saver’ introduced with up to a 24% saving on the full Business Class fare.

Meanwhile, the Consumer Council of Fiji has expressed concern over Air Pacific increasing fares from Fiji to Australia and New Zealand.

Premila Kumar, chief executive officer of the Consumer Council of Fiji, was quoted by the website fijitimes.com as saying that “despite being faced with numerous hurdles in 2007, Air Pacific was able to come out on top to announce a huge profit” and that the airline earned a record pre-tax profit of $38.2 million for the financial year ending March 2008.

Kumar alleged that local consumers have been subsidising, and continue to subsidise, low-cost travels for tourists visiting Fiji by paying higher prices for ticket.