The Fiji National Provident Fund wants to explore further opportunities with Fiji Airways, following a bountiful first year as the national airline’s newest shareholder.
The pension fund had bought 30.02 per cent of Fiji Airways in June 2022 as part of the previous government’s effort to keep the airline afloat at the height of the COVID pandemic, which crippled the global travel industry.
At the fund’s annual member forum in Ba last week, chief executive officer Viliame Vodonaivalu said the primary focus would be on ensuring a sustainable return on member’s funds.
“This exploration is set to revolve around the strategic alignment,” he said.
“And synergies between the airline, the fund’s hotel portfolio and fostering a cohesive profitable investment strategy.
“This equation perfectly complements our existing portfolio of the seven hotels that the fund owns.”
Mr Vodonaivalu said in “just a year, our investment in the airline is now valued at $168million, representing a remarkable 18 per cent increase from the initial equation cost of $93.1million.”
“This monumental change constitutes a substantial 20 per cent of the total income generated within our equity investment portfolio.
“In addition to this, the fund also continued to receive interest income on loans to Fiji Airways.
“Interest income for 2023 was $15.9million compared to $13.3 in the financial year 2022, an increase of 19.82 per cent.”
