The Civil Aviation Authority of Fiji (CAAF) has confirmed its strong financial status and operational effectiveness during a recent presentation to the Standing Committee on Social Affairs, discussing its 2024 Annual Report.
Sereima Bolanavatu, Executive Manager of Standards and Compliance, noted that CAAF has seen significant financial improvement in 2024, attributed to a rebound in aviation activities, enhanced financial governance, and stable governmental support. She stated, “CAAF’s revenue mix in 2024 reflects a strengthened and more diversified financial position, which has been underpinned by the improved government support through the grant, sustained growth in aviation-linked revenues through our departure taxes, stable regulatory income through fees and charges, and a recovering investment return profile. This is not a one-off result.”
During the committee meeting, concerns were raised by Committee Chair Iliesa Vanawalu regarding the fluctuations in government grants. These grants decreased from $3.5 million in 2022 to $668,000 in 2023, but rebounded to $7.2 million in 2024. Niroshana Perera, Executive Manager of Corporate Services, clarified that these variations were due primarily to timing differences in grant disbursement rather than major funding changes.
Additionally, Perera shared that CAAF has strategically placed $13.5 million in fixed deposits, which equals one year of operating expenses. This action is in accordance with recommendations from the International Civil Aviation Organization (ICAO), which advises aviation regulators to maintain adequate financial reserves to ensure continuous operational capability.
The proactive measures taken by CAAF underscore its commitment to maintaining financial health and supporting the recovery of the aviation sector in Fiji, offering a hopeful outlook for the future as the industry continues to rebound.
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