The Parliamentary Standing Committee on Social Affairs has urged Fiji Airways to begin repaying its loans to the Fiji National Provident Fund (FNPF) and the Fiji Development Bank (FDB), following a strong financial recovery in 2023.
In its review of the airline’s 2023 Annual Report, the Committee noted that Fiji Airways had achieved a remarkable turnaround — from a $175 million loss in 2022 to an operational profit of $113.2 million in 2023. The airline also posted a record-breaking $1.8 billion in revenue, the highest in its 70-year history.
Committee said the findings reflected “a commendable post-pandemic recovery,” but stressed the importance of honouring financial commitments.
“Fiji Airways must now begin repaying its loans to FNPF and FDB as per the agreed terms,” said the Committee.
“While the moratorium granted during COVID-19 was necessary at the time, the airline’s strong financial position means it can now resume repayments.”
The Committee highlighted that Fiji Airways had not made any significant repayment to FNPF in 2023, despite its return to profitability. It also reminded the airline of the three-year moratorium granted by both FNPF and FDB during the pandemic.
The report further noted several major developments, including the purchase of two Airbus A350-900 aircraft through a sale-and-leaseback arrangement, the opening of new routes to Canberra and Noumea, and a $130 million investment in the Fiji Aviation Academy in Nadi.
Fiji Airways has also partnered with BSP Life on the construction of a 190-room resort, and achieved international recognition through APEX 5-Star Airline and SKYTRAX 2023 awards.
However, the Committee raised concern about the chartered flight to Israel in September 2023, which is now before the courts over unpaid fares.
“Fiji Airways should immediately find avenues to recover the costs incurred from that chartered flight,” the report said.
The Committee also called on the Government to review and reduce the current departure tax, warning that any increase “will affect the tourism and airline industry.”
