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Fiji Airways is being urged to review its investment priorities as rising operational costs continue to put pressure on the airline.
Managing Director of McDonald’s Fiji Marc McElrath raised the concern during a post-budget forum in Nadi last night, calling for a reassessment of the airline’s tourism investments.
McElrath questioned whether the airline should focus more on managing costs as it faces increasing financial pressures.
Fiji Airways has highlighted rising operational expenses, prompting the government to introduce a five percent tourism services tax to support the airline.
However, concerns have been raised over whether the airline should also review its own spending and investment decisions.
Fiji Airways says it cannot comment on the matter due to confidentiality requirements.
Permanent Secretary for Finance Shiri Goundar agreed that Fiji Airways must reassess its investments and operations to manage the challenges it faces.
“We need to rethink about its investment in Sofitel. Can it be done now? Unfortunately, it’s too early. But we need to start thinking, planning, evaluation, and eventually a decision on Sofitel. Secondly, we need to rethink about our flight routes and fleet.”
The airline has reported an additional $150 million in fuel costs over the past three months compared to the same period last year, alongside other rising expenses.
