The Parliamentary Standing Committee on Social Affairs has strongly encouraged Fiji Airways to commence the repayment of its loans to the Fiji National Provident Fund (FNPF) and the Fiji Development Bank (FDB) following a remarkable financial recovery in 2023.
In examining the airline’s 2023 Annual Report, the Committee noted a significant turnaround for Fiji Airways, which rebounded from a loss of $175 million in 2022 to an operational profit of $113.2 million this year. The airline achieved an impressive revenue of $1.8 billion, representing the highest earnings in its 70-year history, and is seen as a clear indicator of a robust post-pandemic recovery. The Committee underscored the importance of the airline fulfilling its financial commitments, stating, “Fiji Airways must now begin repaying its loans to FNPF and FDB as per the agreed terms.” While the moratorium provided during the COVID-19 pandemic was deemed necessary, the airline’s current strong financial standing suggests it is time to resume repayments. Notably, despite its return to profitability, Fiji Airways has not made substantial repayments to FNPF in 2023.
The report also highlighted the conclusion of the three-year moratorium granted to the airline, emphasizing the need for timely action. Significant developments for Fiji Airways were also outlined, including the acquisition of two Airbus A350-900 aircraft through a sale-and-leaseback deal, the launch of new routes to Canberra and Noumea, and a substantial $130 million investment in the Fiji Aviation Academy in Nadi. In addition to these initiatives, Fiji Airways has partnered with BSP Life to develop a 190-room resort and has received international recognition, being named an APEX 5-Star Airline and achieving accolades from the SKYTRAX 2023 awards.
However, the Committee raised concerns regarding a chartered flight to Israel in September 2023, which is currently facing legal scrutiny over unpaid fares. The Committee advised Fiji Airways to explore options for recovering the costs associated with this flight. Furthermore, there is a call for the government to reconsider the current departure tax, as any increase could have negative repercussions on the vital tourism and airline sectors that are essential to Fiji’s economy.
The Committee’s findings paint a promising picture for Fiji Airways, highlighting the airline’s potential to navigate its financial responsibilities while actively contributing to the recovery of the aviation market in Fiji. There is a sense of optimism as Fiji Airways positions itself for future growth, paving the way for a stronger economic landscape.