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The country’s national airline, Fiji Airways has today announced the termination of contracts of 758 of their staff,termination of contracts of their expatriate pilots and other management team members, and has also gone intonegotiations regarding the loans of the airline company and raising debt finance. Fiji Airways says in order toensure the airline’s survival, given its critical and strategic importance to the Fijian economy, 51% of employeesfrom across the Airline Group who do not have work today or in the foreseeable future have had theiremployment terminated. The company says the 758 workers will be paid a minimum notice period of 1 month(despite most employees having a two-week notice period), plus any accumulated leave and other entitlements.All 79 expatriate pilots have had their contracts terminated and eight expatriate executives have had theiremployment terminated, with five expatriate staff remaining, including the CEO. The airline has six localexecutives, who will all retain their jobs and now constitute the majority of the leadership team. Theresponsibilities of the remaining executives and management have been expanded to absorb the work of thoseterminated. Fiji Airways Managing Director and CEO, Andre Viljoen says these employee terminations are based onwork available today and for the foreseeable future. Viljoen says these decisions have been carefully considered,and they have retained staff in operational areas who have critical skills, training and experience, including thosewho are required to carry out ongoing aircraft maintenance programmes, as well as all regulatory and safety-related post-holder positions as per Civil Aviation Authority requirements. Viljoen says a minimal level of staff isrequired in non-operational areas of the business in order to keep it functioning. He says in all areas, they haveretained staff based on objective and fair criteria such as performance, disciplinary record, and aptitude for therole. Viljoen also says a 20% permanent salary reduction has been implemented for all retained employeeseffective 1st June 2020. He says in the short term, retained staff will work between 2 to 5 days per week, and willonly be paid for actual days or hours worked. The CEO also says that employees will be permitted to utilize annualleave days on days not worked, in order to top up their weekly pay. The company says these workforce reductionmeasures will result in a 50% reduction in the company’s payroll cost base. Viljoen says many of their dearcolleagues affected by these reductions have contributed enormously to the airline over many years, and they owethem a huge debt of gratitude. He says Fiji Airways is also negotiating with its lenders and aircraft lessors for loanand lease payment deferrals, and arranging debt lijance from a number of financial institutions. Fiji Airways hasalso recently extended the suspension of international flights through to the end of June, and is in the process ofreducing scheduled flights for July and August.