Fiji Airways faces route competition

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Minister Viliame Gavoka in Parliament last week – FIJI PARLT

FIJI Airways’ control of 70 per cent of the Korean market through its established gateways could be in jeopardy following Government’s plan to restore Korean Air’s direct services to Fiji.

Direct flights between Nadi International Airport and Seoul’s Incheon International Airport came to an end in 2019 after the airline cited a constant deficit of the route caused by a steady decline in passenger demand.

However, in Parliament last week, Tourism Minister Viliame Gavoka revealed plans to restore services by Korean Air, causing concerns from the national airline.

Fiji Airways CEO and managing director Paul Scurrah said the national airline was already serving the Korean market through Hong Kong, Tokyo and Singapore into Fiji and seamless connections through its airline partners.

“Should Korean Air restore direct services to Nadi, Fiji Airways anticipates increased competitive pressure on its Asian routes, including those serving other regional destinations,” said Mr Scurrah.

“Fiji Airways remains confident in the strength of its network and the quality of its partnerships and will continue to offer Korean travellers convenient and competitive connectivity into Fiji.”

He said the airline acknowledged that any restoration of direct Korean Air services to Nadi would introduce additional competition into the market.

“The airline will continue to honour and operate within all existing bilateral and codeshare frameworks, while actively monitoring market conditions to ensure its commercial interests and those of its passengers are appropriately protected.

“Fiji Airways remains committed to providing seamless international connectivity for travellers to and from Fiji.”

The Fiji Airways CEO added the national airline also provided multiple viable options to the lucrative European market.

“In addition, Fiji Airways continues to offer UK and European travellers a range of convenient routing options to Fiji whether via its Asian gateways through partners such as Cathay Pacific and Finnair, through Vancouver (YVR) in partnership with British Airways and WestJet or via the United States through Los Angeles and San Francisco.

“These multiple pathway options ensure that long-haul travellers from the UK and Europe are well served regardless of changes in the competitive landscape.”

In Parliament, Mr Gavoka said Fiji used to welcome around 50,000 visitors annually from Europe largely due to Korean Air’s routes linking London, Seoul and Nadi.

He said during a meeting with the president of Korean Air, he was informed the airline lost $5million annually on the Fiji segment of the route.