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Fiji-US Open Skies Agreement Paves Way for Further Trade and Tourism

The Pacific

On August 28, 2024, Fiji and the US signed an Open Skies Agreement that permits unrestricted air access for passenger and cargo planes. This is set to spark further economic cooperation including a brand-new commercial route between Dallas, Texas, and Nadi, Fiji.

During a bilateral meeting at the Pacific Islands Forum Leaders’ Meeting in Nuku‘alofa, Tonga, Republic of Fiji Prime Minister Sitiveni Rabuka and US Deputy Secretary of State Kurt M. Campbell signed the Open Skies Air Transportation Agreement. Under the agreement, both countries will allow unrestricted capacity and frequency of passenger and cargo flights effective upon the signature of the agreement. With this accomplishment, Fiji has become the fourth Pacific Island country to establish an Open Skies Agreement following the Cook Islands (2006), Tonga (2004), and Samoa (2002). This agreement is a product of consultations with Fiji Airways and longer efforts to liberalize Fiji’s Aviation Policy.

In anticipation of this approval, Fiji Airways announced a new direct flight route between Nadi, Fiji, and Dallas, Texas set to debut on December 10, 2024. As a result, Dallas Fort Worth International Airport will be the fourth US airport with a direct flight from Fiji Airways alongside Los Angeles International Airport, San Francisco International Airport, and Daniel K. Inouye International Airport in Honolulu. The thirteen-hour flight connecting Nadi and Dallas will operate on Tuesdays, Thursdays, and Saturdays. Each flight will contain 301 economy class seats and 33 business class lie-flat seats for a total capacity of 334 passengers.

However, the collaboration between Fiji and the US does not end with this one flight. Oneworld, the third-largest global airline alliance, announced that Fiji Airways would become its fifteenth full-member airline in 2025. This will enable code-sharing, the practice of one airline marketing and selling seats on planes operated by another airline, between Fiji Airlines and Oneworld partners like American Airlines. Thus, Fijian consumers will have access to the American Airlines Travel Rewards Program, the world’s biggest loyalty program with 115 million members.

As a result, travel opportunities for Fijians and Americans will greatly increase. Notably, the link between Nadi and Dallas Fort Worth will give Fijians access to more than 250 destinations around the world. According to the US National Travel and Tourism Office, in 2023, 8,996 Fijian tourists visited the US, which was a 23.9% increase from the previous year. With the increased availability for US layovers in Dallas, Fijian tourism will likely increase in the following years. Likewise, Fiji’s unique location at the boundary between Melanesia and Polynesia will provide unique access to travel destinations like Tuvalu, Samoa, Tonga, and more. In fact, through Fijian Airways, Americans can fly to five cities in Fiji, seven cities in Pacific Island countries, three cities in East Asia, and more.

Moreover, the Open Skies Agreement will surely impact the already strong economic relationship between Fiji and the US. In 2022, Fiji’s exports to the US totaled $551 million with major sales of mineral water ($383 million), processed fish ($53.4 million), and perfume plants ($11.7 million). In that same year, the US was Fiji's eighth largest source of merchandise exports with a total of $63.5 million. This agreement also has the potential to benefit the Texan economy. According to the US Census Bureau, in 2023, Texas roughly contributed to 6% of US exports to Fiji with a value of $6.04 million and imported nearly $14.01 million worth of products from Fiji. With the removal of limits for cargo planes, the value of exports and imports could increase as businesses take advantage of the newfound opportunities.

As the US government seeks to deepen diplomatic ties with Pacific Island nations, efforts like the Open Skies Agreement is a major step in fostering goodwill between the US and Fiji. In the coming months, we can expect to see benefits for tourists, businesspeople, and consumers within both countries.

Daniel Salgado-Alvarez is a Fall 2024 Young Professional at the East-West Center. He is a recent graduate from Harvard University, where he studied sociology and East Asian studies.