[Photo: Bose Vavataga]

Fiji Airways is offering voluntary separation packages to employees as it looks to reduce operating costs amid a prolonged global fuel crisis.

Speaking to FBC News Chief Executive Paul Scurrah says the exercise includes voluntary early retirement and separation agreements, mainly targeting middle management, management and non-operational staff.

The airline has no set target for the number of employees who may leave, with staff being given the opportunity to express their interest.

Scurrah says the fuel crisis is expected to add $500 million to the airline’s costs over the next two years.

He says Fiji Airways is reviewing every area of its business to identify savings, including staffing, management and systems that could improve efficiency.

“We have to take responsible action and be very responsible about the cost and the money we spend relative to the crisis we find ourselves in right now. And there is no doubt that we should have invested in systems years ago to make us more efficient, that we’re a little bit more manually intensive than we should be. And we’re reviewing that all the time.” 

Despite the cost pressures, Scurrah says the separation exercise will not affect flight operations.

The airline plans to increase capacity by 125-thousand seats next year, creating more work for pilots, cabin crew and ground staff.

He says the airline is also increasing services on existing routes, with more flights planned to Singapore, Tokyo, Hong Kong and Christchurch.

“But at this point in time, we are comfortable with the decision we made to pull out of Dallas, but we redeployed those aircraft where they were better used and better supported. We will grow this industry. And that is something that no other airline can claim to be doing in the world right now.” 

Scurrah has not ruled out compulsory job cuts if the global fuel crisis continues to put pressure on its finances.