The Fijian government has approved guarantees totalling FJ$561.4 million to shore up Fiji Airways’ finances, with FJ$521.9 million of those guarantees already issued as at the reporting date, the national carrier disclosed in its 2024 annual report tabled in Parliament this month. The guarantees are intended to help the airline secure additional borrowing, defer aircraft lease payments and conserve cash as it navigates a prolonged global aviation downturn.
The annual report outlines a broad mix of local and international facilities supported by the government’s backing. On the domestic side, loans include FJ$95 million from the Fiji Development Bank, FJ$53.6 million from the Fiji National Provident Fund, and FJ$30 million from the Home Finance Company. The airline also holds multiple facilities with BRED Bank, including a FJ$25.5 million line and various US dollar loans.
Several of the government-backed facilities are denominated in US dollars. The report cites a US$15 million loan from the Bank of South Pacific and a US$10 million facility from the Home Finance Company among these foreign-currency exposures. The package also includes standby letters of credit provided by ANZ Bank and BRED Bank, which support the airline’s liquidity and commercial obligations.
Beyond lending lines, the guarantees underpin arrangements that provide temporary relief on cash flow. The report says the support covers deferred loan repayments and aircraft lease payments negotiated with international lenders and lessors, specifically naming KfW IPEX-Bank, Avolon and GE Capital Aviation Services (GECAS). Those deferrals have been central to the carrier’s strategy to preserve cash while capacity and travel demand recover unevenly worldwide.
With FJ$39.5 million of the approved guarantee limit yet to be issued, the formal approval gives Fiji Airways room to draw further on state-backed support if required, the report implies. The company framed the guarantees as “playing a key role in supporting the airline’s financial commitments as it recovers and expands,” noting the measures were introduced in the wake of COVID-19’s severe impact on global aviation.
The disclosures will be watched closely by Parliament and industry stakeholders because they spell out the scale of state exposure tied to the national carrier. The guarantees form part of a broader pattern across the Pacific and globally, where governments intervened during the pandemic to prevent carriers from collapsing and to safeguard connectivity. For Fiji Airways, the challenge ahead will be converting the breathing room provided by the guarantees into a sustainable recovery path as international travel normalises and leasing and loan obligations resume.
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