PS Gounder at Dialogue Fiji event
Fiji Airways investment in the Sofitel Fiji Resort & Spa and its flight routes and frequency are in the spotlight, says Finance Ministry Permanent Secretary Shiri Gounder.
Speaking at Dialogue Fiji’s National Budget Forum last night, he said Fiji Airways needs to look at ways it can reduce costs in light of the 5% tourism tax being introduced to support the airline and the $200 million loan guarantee by the State for the national carrier.
Gounder was responding to questions asked by Dr Ahmed Shakeel Shariff from the Nadi Chamber of Commerce and Industry.
Dr Shariff had asked whether Fiji Airways was top-heavy and questioned the fairness of imposing a tax on the entire tourism sector without first taking measures to reduce its costs.
In response, Gounder said Government, as the largest shareholder, was having discussions with the Fiji Airways Board and management in terms of cost-reducing measures.
He said these included rethinking their investment in the Sofitel Fiji Resort & Spa and optimisation of flights, routes and frequency.
Gounder said they have to holistically look at how the State supports the tourism industry and at the same time ensure it is running a viable national airline.
