Air Pacific mirrors Fiji's woes

Dave Pflieger recently took over as new CEO of Air Pacific following former CEO John Campbell’s retirement, but he may be regretting the career move, despite the tropical setting.

Pflieger's appointment was lauded from all quarters, given that he brought 25 years of aviation industry experience as a business executive, attorney and pilot - including, most recently, a senior role with Virgin America.

But one of his first major announcements reveals the biggest ever loss for the Fijian flag carrier - F$65.3 million to the end of March - on top of a 17 per cent plunge in revenue.

"While much of the 2009/10 losses were due to lower fares caused by increased competition, the impact of the global financial crisis and fuel hedging losses, last year's results are clearly unacceptable going forward," Pflieger said.

The new CEO has apparently completed a comprehensive review of all aspects of the airline and reckons things wil be heading back in the right direction.

But the one factor that he can't comment on is the political situation in Fiji and the deterrent effect that is beginning to have on tourism.

Our correspondent there says (anonymously of course) that the main island is showing real signs of neglect in terms of cleanliness and that there is an unappealing atmosphere at odds with that traditional Fijian welcome.

The military government continues to show Australia and NZ the finger, only because it is in bed with China.

This can't be a situation Air Pacific's minority shareholders Qantas and Air NZ can endure for much longer