The $65.3 million loss recorded by Air Pacific for the financial year ending March 2010 has seen the sale of Qantas shares in Air Pacific more difficult.
The Sydney Morning Herald reports that Qantas, who own forty six percent shares in the national air line Air Pacific, faces a tough task of finding a buyer for its shares after what they say is its biggest loss in fifty nine years history of involvement.
According to the Sydney morning herald, an insider said that Qantas boss Alan Joyce has been in talks with Air Pacific to sell of its shares since September last year and more recently in May of this year had talks with Air Pacific's chairman Nalin Patel and Chief Executive Dave Pflieger.
Qantas owns 46% while the Fiji Government has a 51% share in Air Pacific.
Meanwhile, CEO of Air Pacific Dave Pflieger said 2010 and next year’s financial year looks to be challenging.
Pflieger's comments came after company announced huge financial after tax losses between the periods of 1st April 2009 to 31st March this year.
Air Pacific had recorded $65.3 million and Air Pacific group had $59 million loss.
According to Pflieger due to slow economic recovery and continued competition from overseas airlines this financial year looks challenging.
He stressed Air Pacific and their domestic carriers Pacific Sun both have to change if they have to succeed.
He said that is why they began a strategic review of both airlines when he arrived in May this year.
Air Pacific Chairman Nalin Patel said the company reduced costs by $18.7 million or 3% from the prior financial year but total revenue dropped by 106.9 million, a 17% reduction from 2008/2009.
Story by: Paradise Tabucala/Ronal Deo
