The Parliamentary Standing Committee on Social Affairs has urged Fiji Airways to initiate the repayment of its loans to the Fiji National Provident Fund (FNPF) and the Fiji Development Bank (FDB), following a significant financial recovery in 2023.
In reviewing the airline’s 2023 Annual Report, the Committee highlighted Fiji Airways’ extraordinary turnaround, moving from a loss of $175 million in 2022 to an operational profit of $113.2 million the following year. The airline achieved an impressive $1.8 billion in revenue, marking the highest earnings in its 70-year history. This achievement is seen as a testament to a strong post-pandemic recovery, with the Committee emphasizing the need for the airline to meet its financial commitments.
“Fiji Airways must now begin repaying its loans to FNPF and FDB as per the agreed terms,” the Committee stated, acknowledging that while the moratorium during the COVID-19 pandemic was essential, the airline’s robust financial state now necessitates resuming repayments. Despite returning to profitability, the airline has not made considerable repayments to FNPF in 2023. The report also reiterated the three-year moratorium granted to the airline, which has now ended.
Several major developments for the airline were noted, including the acquisition of two Airbus A350-900 aircraft via a sale-and-leaseback arrangement, the introduction of new routes to Canberra and Noumea, and a $130 million investment in the Fiji Aviation Academy in Nadi. Additionally, Fiji Airways has partnered with BSP Life to develop a 190-room resort and has earned international accolades as an APEX 5-Star Airline and through the SKYTRAX 2023 awards.
However, the Committee expressed concern regarding a chartered flight to Israel in September 2023, which is currently under legal scrutiny over unpaid fares. The Committee recommended that Fiji Airways seek ways to recover the incurred costs from this flight.
The government has been urged to consider revising the current departure tax, as any increase could adversely impact the tourism and airline sectors crucial to Fiji’s economy. The Committee’s findings signal a hopeful outlook for Fiji Airways, as the airline navigates its path toward fulfilling financial obligations while contributing to a recovering aviation market.