The Parliamentary Standing Committee on Social Affairs has called on Fiji Airways to initiate repayments for its loans from the Fiji National Provident Fund (FNPF) and the Fiji Development Bank (FDB), following a significant financial recovery in 2023. The airline demonstrated a remarkable turnaround, shifting from a loss of $175 million in 2022 to an operational profit of $113.2 million this year. Furthermore, Fiji Airways celebrated a record-breaking revenue of $1.8 billion, marking the highest earnings in its 70-year history.
The Committee acknowledged this commendable post-pandemic recovery but emphasized the necessity for Fiji Airways to meet its financial commitments. “Fiji Airways must now begin repaying its loans to FNPF and FDB as per the agreed terms,” stated the Committee, noting that the moratorium provided during the COVID-19 pandemic has ended, and the airline’s strong financial position supports the resumption of repayments.
Despite returning to profitability, the Committee pointed out that no substantial repayments have been made to FNPF in 2023. It reminded the airline of the three-year moratorium granted by both FNPF and FDB during the pandemic, underscoring the importance of honoring these obligations moving forward.
Among several significant developments, Fiji Airways has recently acquired two Airbus A350-900 aircraft via a sale-and-leaseback agreement, expanded route offerings to Canberra and Noumea, and invested $130 million in the Fiji Aviation Academy in Nadi. Additionally, the airline has partnered with BSP Life to develop a new 190-room resort and has gained international recognition, receiving the APEX 5-Star Airline and SKYTRAX 2023 awards.
However, the Committee raised concerns regarding a chartered flight to Israel in September 2023, which is currently facing legal challenges over unpaid fares. “Fiji Airways should immediately find avenues to recover the costs incurred from that chartered flight,” the report recommended.
In tandem with these developments, the Committee urged the Government to re-evaluate and potentially lower the current departure tax, cautioning that any increase could have adverse effects on the tourism and airline sectors, which are vital to Fiji’s economy.
As Fiji Airways moves forward, its commitment to repaying loans and managing its financial obligations responsibly signifies a hopeful path toward renewed stability and growth within the aviation industry. The ongoing recovery reflects not only resilience in the face of recent challenges but also a commitment to reinforcing the foundation of the airline’s future operations.
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