Introduction Growth in this sector is mainly driven by expansion in the tourism industry, contributing significantly to the number of passengers, as well as by growth in air cargo. Major developments in the sector include, reform of AFL and CAAFI, upgrading of Nadi Terminal, upgrading of the Nadi runway, and the upgrading and development of outer island airports. Air Pacific has also made significant investment in the purchase of new aircrafts. A domestic aviation review study in 2003, found substantial social and economic justification for continuing the payment of service subsidies to certain isolated routes. Most of the population on outer islands has difficulty affording normal airfares. Government will consider extending the subsidies to other airlines to service additional routes. Lack of competition with Air Pacific on regional routes has constrained the development of tourism in Fiji and the capacity for raising exports of goods into the region when PICTA came into force. Air Services Sector Structure Airports Fiji Limited (AFL) administers Fiji’s 6.5 million square km of airspace (Flight Information Region) and the operation of Nadi and Nausori International Airports and the operation of 13 other Government airports in Fiji. Air Terminal Services Fiji Limited (ATSFL) provides ground handling services to regional and international carriers at Nadi Airport. These include Line Maintenance; Catering and Cabin Services; Passenger Services; Ramp Services and Freight Sales & Handling Services. In addition to handling scheduled carriers, ATS provides all services as required to all types of ad hoc operators ranging from charter flights and long haul freighters to military and private aircraft. They are certified to handle and are equipped to work on everything from wide-bodied passenger and freight aircraft to turbo prop and light aircraft. The Civil Aviation Authority of Fiji (CAAFI) retained the technical regulatory functions of the aviation industry to comply with National and International standards set by the International Civil Aviation Organisation (ICAO) Standards and Recommended Practices. Its functions also include the registration of aircraft; safety of air navigation and aircraft; control of air traffic; certification of aircraft and operators; licensing of aircrew and airports. On the other hand, the Ministry of Foreign Affairs, International Cooperation and Civil Aviation through its Department of Civil Aviation is tasked with the responsibility of ensuring the currency of the existing 28 Air Service Agreement (ASA) as well as negotiating new ASA with strategic partners. Additional to its CNS/ATM (Communication, Navigation & Surveillance/Air Traffic Management) responsibility the taking over by the AFL of operations of airports was part of Government's reform of its public enterprises to improve customer focus, lower costs to business and consumers and to improve efficiencies, in particular the return on investment. International Airports International airports are located at Nadi and Nausori. Nadi International Airport has the capacity to handle up to a fivefold increase in aircraft movements without any significant change to the current level of manpower and is used by most international airlines operating on transpacific air routes. Fiji enjoys regular air services to Australia, New Zealand, the United States of America, Canada, Japan, South Korea, Samoa, American Samoa, Tonga, Vanuatu, PNG, Solomon Islands, Kiribati, Tuvalu, and Nauru. There are regular daily flights between Nadi and Suva through Air Pacific’s domestic airline, the Pacific Sun. The 2 international airports were at varying levels equipped with modern passenger and cargo screening facilities, upgraded amenities, CCTV cameras, new trolleys etc. Airports Fiji Limited (AFL) has Master Plans for Nadi International Airport and Nausori International Airport and will continue to upgrade its domestic airports. Main Carrier Air Pacific continues to be the main airline operating international air services to and from Fiji, and there is also a range of other carriers serving Fiji such as Pacific Blue, Australia V, Jetstar (from 29th March 2010), The national airline Air Pacific operates scheduled flights between Nadi, New Zealand, Australia, Canada, Hong Kong and West Coast USA, as well as other regional countries of the South Pacific. The Fiji Islands are serviced regularly by major airlines including Qantas, Air New Zealand, Canadian Pacific, Korean Airlines, Solomon Airlines, Air Caledonia International, Air Marshall Islands, Continental Micronesia, Our Airline, Air Niugini, Air Vanuatu Airlines Tonga, and Air Kiribati. There are scheduled internal air service and regular daily flights between Nadi International Airport and Suva. Air Pacific also provides code-share arrangements with Qantas on some of the air routes. Pacific Sun, Pacific Island Air Ltd, Coral Airways, Turtle Airways and Air Wakaya provide plane charter services and Pacific Crown Aviation provides a helicopter hire service. Air Pacific commenced flights to Hong Kong in December 2009 with the new air services agreement (ASA) signed with China in early 2009. A similar ASA has been signed with Continental Micronesia to service routes between Guam/Nadi/Honolulu soon. In mid-2009, AFL started works on upgrading Rotuma airport to bring it up to international standards. Estimated cost of this upgrading work is $17million. Airline Operations – International Air Pacific, Fiji’s national airline, has progressively grown as a local and international airline. Today it operates 6 aircraft types. The aircraft types are: 1 x Boeing 737 - 700 2 x Boeing 737 - 800 1 x Boeing 767 – 300 2 x Boeing 747 – 400 Besides Air Pacific, Qantas, Air New Zealand, Air Vanuatu, Korean Air, Pacific Blue, and Air Calin provide international services through Nadi Airport. Other European, Asian and Americian continental services are provided by Qantas and Air New Zealand. Current services provided by Air Pacific (FJ) are as follows: Destination Frequency per week Apia 3 Auckland 11 Brisbane 7 Christchurch 1 Funafuti 2 Hong Kong 2 Honiara 1 Honolulu 2 Los Angeles 4 Melbourne 3 Sydney 7 Tarawa 2 Tonga 4 Vancouver 4 Vila 2 (Air Pacific Ltd - 4th March, 2010) Airline Operations – Domestic On the domestic front, development of local air services has progressed well to service Fiji’s outlying islands. Pacific Sun continues to be the principal domestic operator using Nadi Airport as its main base and have recently expanded operations to include flights out of Suva to Levuka, Taunovo Bay, Savusavu, Taveuni and Kadavu – this in addition to their existing operations between Suva & Nadi and Suva & Labasa. Out of Nadi services include flights to Labasa, Savusavu, Taveuni, Kadavu, Malololailai, Mana and Taunovo Bay. They currently have a fleet of 2 ATR42-500's, 3 De Havilland Twin Otters and 3 Britten Norman Islanders and plans are underway to increase this fleet over the next 12-18 months. New comer Northern Air uses Nausori Airport as its main base operating 1 Britten Norman Islander and are currently in negotiations to purchase a second aircraft. Pacific Sun also covers the South Pacific Islands with their ATR42-500’s. Other commercial domestic operators offering non-scheduled services include Pacific Island Air, Turtle Airways, Air Wakaya and Laucala Air. Pacific Island Air are a mainly seaplane operation based at Nadi Airport and provide charters to Island Resorts in the Mamanuca’s, Yasawa’s and Fiji’s Northern Islands. Turtle Airways, also seaplane operators, Air Wakaya and Laucala Air mainly cater to their own properties (Turtle Island Resort, Wakaya Island Resort and Laucala Island Resort) however are also available for Charter services within Fiji. Private Operators include Hibiscus Air and Island Air and these airlines are not available for hire or reward i.e. strictly private operations. Island Hoppers is Fiji’s only provider of Helicopter service and is based at Nadi Airport. They offer charters, medical evacuations and other services to most island and mainland based resorts throughout Fiji. Air Services Air Freight Air Freight services are available in two forms, namely, air cargo and air courier. These services are available on all aircraft operating out of Nadi Airport. Air Courier This service is primarily meant for documents and parcels that need immediate delivery within a couple of days. The pertinent feature of courier service is that it is a door-to-door service. There are no prescribed courier rates and varies from courier company to company. Air Cargo International air cargo, airport to airport service is available for all types of commodities. General air cargo rates are prescribed after consultation with air transport body International Air Transport Association (IATA). The minimum rates prescribed are also known as IATA rates. Reduced commodity rates are negotiable with the transporters on the basis of bulk and frequency. Moreover, certain transporters offer special consolidated rates based on a grouping system. Consolidated rates operate under the concept of bringing freight together and hence could work out to be cheaper than general rates. Consolidated rates are normally prescribed by Freight Forwarders who establish their own rates (from the prescribed IATA rates) based on the item, total weight and the frequency at which the targeted weight is achieved. General freight rate, or IATA rate, will be used for goods that cannot wait for grouping dates. Civil Aviation The Department of Civil Aviation is accountable to the Minister for Civil Aviation through the Permanent Secretary for the Ministry of Foreign Affairs, International Cooperation & Civil Aviation in the provision of sound advice that ensure the effective and efficient regulation, technical and economic of air transport within Fiji’s 6.5 million square kilometers of Flight Information Region (FIR). The Department of Civil Aviation is the Government’s focal point to international civil aviation bodies with the likes of the Montreal based "ICAO General Assembly", the link to both the ICAO Montreal based HQ as well as its Bangkok based "Asia and Pacific Regional Office", the Vanuatu based ‘Pacific Islands Aviation Safety Office", the Forum Secretariat sponsored "Pacific Islands Air Services Agreements", the "Regional Steering Committee Meeting for the Cooperative Aviation Programme for Asia and the Pacific", "The Asia/Pacific Directors General of Civil Aviation Conference", the "Association of South Pacific Airlines." The Department is responsible for the establishment of Air Services Agreements with sovereignties wishing to generate trade, tourism links and diplomatic relations within Fiji through the provisions of air transportation. The Department is responsible for the facilitation of requests for nonscheduled international air operators who wish to make a landing or over flight within our FIR. The Department is responsible in facilitating the issue of air service licences to international operators wishing to provide scheduled air services into and out of Fiji in accordance with the Air Services Agreement The Department of Civil Aviation chairs the National Civil Aviation Intelligence Community Committee, the National Aviation Security Committee including the Airport Aviation Security Committees for both Nadi International Airport and Nausori International Airport and represents the Ministry for Civil Aviation in the National Aviation Facilitation Committees and the two International Airports subsidiary Aviation Facilitation Committees. The Department further represents the interest of The Minister for Civil Aviation in the following Boards; CAAFI Board Air Pacific Board and the Air Transport Licensing Board (ATLB) The Department is assisted in its civil aviation safety and civil aviation security functions and roles by its operational arms, which are: 1. The Civil Aviation Authority of the Fiji Islands (CAAFI) which is primarily responsible for the technical regulation of air transport stipulated under the Air Navigation Regulations. 2. The Airports Fiji Limited (AFL) tasked under our ANR to look after the CNS/ATM functions of The Minister for Civil Aviation. 3. The Air Terminal Services (ATS) being the Ground Handling Service Provider at our Nadi International Airport in which Government holds majority share The Department facilitates in the release of Government funds to Airports Fiji Limited for the construction and upgrading of Government airports within Fiji. The Department provides the Secretariat support services to the ATLB. Civil Aviation Authority of Fiji (CAAFI) Retained the technical regulatory functions of the aviation industry to comply with National and International standards set by the International Civil Aviation Organisation (ICAO) Standards and Recommended Practices. Its functions also includes the registration of aircraft; safety of air navigation and aircraft ; control of air traffic; certification of aircraft and operators; licensing of aircrew and airports. Airports Fiji Limited (AFL) Administers Fiji’s 6.5 million square km of airspace (Flight Information Region), the operations of Nadi and Nausori International Airports and the operation of 13 other Government airports in Fiji Air Terminal Services Fiji Limited (ATSFL) Provides ground handling services to regional and international carriers at Nadi Airport. These include Line Maintenance; Catering and Cabin Services; Passenger Services; Ramp Services and Freight Sales & Handling Services. In addition to handling scheduled carriers, ATS provides all services as required to all types of ad hoc operators ranging from charter flights and long haul freighters to military and private aircraft. They are certified to handle and are equipped to work on everything from widebodied passenger and freight aircraft to turbo prop and light aircraft. Department of Civil Aviation Is tasked with the responsibility of ensuring the currency of the existing 28 Air Service Agreement (ASA) as well as negotiating new ASA with strategic partners. Additional to its CNS/ATM (Communication, Navigation & Surveillance/Air Traffic Management) responsibility the taking over by the AFL of operations of airports was part of Government's reform of its public enterprises to improve customer focus, lower costs to business and consumers and to improve efficiencies, in particular the return on investment. Air Pacific Air Pacific, Fiji’s national airline, has progressively grown as a local and international airline. Air Pacific operates up to 120 flights weekly to 17 cities in 11 countries. 80 % of their business is offshore. Today it operates 6 aircraft types. Fleet: 2 x B747-400 (457 seats) 1 x B767-300ER (253 seats) 2 x B737-800 (160 seats) 1 x B737-700 (120 seats) 8 x B787-900 (on order) Nadi is the operational base for Air Pacific, they services six airports throughout the southwest Pacific, and many more on the Pacific Rim. The Destinations of Air Pacific:
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