Fiji's domestic and regional airline, Pacific Sun has today announced a major restructuring of airline operations and jobs as part of its turnaround plan to ensure future sustainability and success.

As a result of the restructuring, 85 positions from Pacific Sun's administrative and support areas, as well as some operations areas will be made redundant effective from the 31st of next month.

Pacific Sun said its management will be meeting with affected staff over the next few days and consultation with affected employees and their elected labour representatives will begin on the 31st of this month and end on the 31st of next month.

Pacific Sun said while not required by law or any individual or union contracts, those eligible employees affected by the redundancies will be offered a total of three months’ severance pay to assist them with retraining and job search efforts.

Details of the restructuring and turnaround plan were outlined to Pacific Sun employees and union representatives today by Pacific Sun General Manager, Jim Samson as well as Pacific Sun board member and Air Pacific CEO, Dave Pflieger.

Samson said Pacific Sun has lost on average 6 million dollars a year over the last three years and continued losses are unsustainable.

Pflieger noted that since 2007, when Air Pacific loaned Pacific Sun 44 million dollars to purchase the former Sun Air certificate and operations, as well as two ATR-42 aircraft, Pacific Sun has accumulated 18.5 million dollars in losses.

As a consequence of these poor financial results, Pacific Sun has stopped flying loss-making routes to Mana and Malolo in June, and recently ceased operations of its 9-seat Islander aircraft.

Pflieger has also announced that a key aspect of the Pacific Sun restructuring and turnaround plan will be the centralisation of support and operations functions within Air Pacific to eliminate duplication, enhance efficiencies and reduce costs.

He said the centralisation process will result in the creation of upto 29 new jobs at Air Pacific, and both Pacific Sun and Air Pacific employees will be able to apply for these jobs.

Another key part of the airline's restructuring and turnaround plan will involve Pacific Sun investing in two Twin Otter 300 series aircraft to replace existing 100 series aircraft, providing increased passenger and payload capabilities.

Pflieger said the boards of Pacific Sun and Air Pacific as well as the Fiji government have approved the restructuring and turnaround plan because it is the only way to ensure Pacific Sun's viability and success going forward.


Story by: Vijay Narayan