Domestic carrier Air Fiji is faced with a dilemma which could put the future of the company in doubt with escalating fuel prices already taking its toll on operators around the world.

Following a ruling by the Permanent Arbitrator last week, who ruled that Air Fiji must remove all its cost cutting measures, which were in breach of a collective agreement, Air Fiji chief executive officer Saileni Vuetaki said they have no option but to adhere to the ruling.

However, Veutaki stressed that they must cut back on operational costs or the airline could be forced to close down.