When the Model Actually Works Marc Cavaliere, Chief Marketing Officer

August 2017

♦ Founded September 1951 ♦ Rebranded from Air Pacific in June 2013

♦ Fleet of 15 ♦ Airbus A330 (4) ♦ NG (5) ♦ ATR (3) ♦ DHC-6 Twin Otter (3)

♦ Network: ♦ 70 destinations including codeshare

Fiji Airways Welcome to Our Home

Fiji Airways Types of airlines – Business model characteristics NATIONAL DEVELOPER NETWORK CARRIER NICHE CARRIER LOW COST

CORE OBJECTIVE CORE OBJECTIVE CORE OBJECTIVE CORE OBJECTIVE

Strategic tool to develop Profitability Profitability Profitability country DEFINING FEATURE DEFINING FEATURE DEFINING FEATURE DEFINING FEATURE

Product & network vs fare Restructure/restructuring Product & markeng or Cheap fares legacy airline geography ACCESS TO CAPITAL ACCESS TO CAPITAL ACCESS TO CAPITAL ACCESS TO CAPITAL

Government Mix of publicly listed & Mix of private ownership & Mix of publicly listed and Government publicly listed private ownership NETWORK STRATEGY NETWORK STRATEGY NETWORK STRATEGY NETWORK STRATEGY

Maximise inbound traffic is Maximise traffic flowing Generally point to point Pure model is point to point, core priority, service across the network, may network, may have a some evolve to add strategic markets, flow traffic have more than one hub geographic or regulatory connecvity, high seat across the network with (United has 8), compeve compeve advantage. density and ulisaon with connecvity used to grow advantage (city presence) in common fleet type. network. home market. PRODUCT PRODUCT PRODUCT PRODUCT

Above average quality Range from 3-5 stars Above average quality Below average quality product (4-5 stars) product (4-5 stars) product (2-3 stars) EXAMPLES EXAMPLES EXAMPLES EXAMPLES

Singapore Airlines, Emirates, US, European & Asian majors Virgin Atlanc Southwest, Ryanair, Air Asia

Fiji Airways Ehad (most former naonal airlines) When we do well, the economy does well

Passengers Flown Tourist Arrivals

(millions) 1.4 792320

1.3 750000

1.2 692000

2014 2015 2016 2014 2015 2016 Passengers Flown Tourist Arrivals

♦ Tourism major economic contributor: ♦ Tourism is 35% - 37% of the Fijian GDP ♦ Tourism earnings in 2016 were F$1.6b ♦ Tourism employs 40,000 people in Fiji (population around 900,000) ♦ 65% of all arrivals and departures to Fiji on Fiji Airways

Fiji Airways We touch the lives of hundreds of thousands of Fijians

Fiji Airways The National Interest

♦ National interest and profitability are not mutually exclusive – Fiji Airways focuses on optimising profitability aligned to national interests

Naonal Profitability Interest

Fiji Airways ♦ Our Core Strategic Objectives: ♦ Sustainable profits The strategic role of Fiji ♦ Supporting inbound tourism Airways is to be a profitable ♦ Growth (leading to investment) national airline ♦ Serving the national interest ♦ Product / Service level / targets

Fiji Airways Through thick and thin, rain or shine

♦ National airlines remain committed to their countries. We are here to stay.

Fiji Airways Strong Financial Position as a foundation

♦ Profitability Profits (m) 90 84.5 80 70.2 70 60.8 60 50 40 30 20 14.2 10 0 2013 2014 2015 2016

Profits (m)

We are definitely on track as far as sustainable profitability is concerned.

Fiji Airways A rebranded national airline for Fiji

Fiji Airways Proudly pursuing ambitious goals

♦ The Company Vision – To Be the Most Desired, Most Flown, Most Profitable Airline in the South Pacific

Most Most Most Desired Flown Profitable

To be loved by our employees, to Connecting the world to Our relentless pursuit for be loved by our partners and to the South Pacific with be loved by our customers sustainable high more direct flights and our performance Partner Networks To be loved for:

• our unique Fijian Hospitality & Service

• welcoming you to our home

• taking you on the journey to where happiness finds you

Fiji Airways Fiji Airways Taking Service to Another Level

Fiji Airways Regional Leadership. Lending a helping hand

Fiji Airways Signs MOU with to assist set-up of Samoa Airways

Fiji Airways’ regular scheduled services to Vava’u, connecting Vava’u () to the world.

Fiji Airways