Fiji Airways has become a noose around the necks of the taxpayers.
These were the remarks of Fiji Labour Party leader Mahendra Chaudhry after the Asian Development Bank (ADB) recently signed a $130 million loan to Fiji Airways.
“It (Fiji Airways) has borrowed heavily under Government guarantees since the closure of the international borders last year and it has borrowed $455 million last May from various local and overseas sources,” he said.
The former prime minister said further borrowings had increased the new loans to more than $650 million, which did not take into account the national carrier’s previous loans.
“Its 2019 accounts have not been published so far or tabled in Parliament; it is evident that the airline has chalked up huge losses last year and is now technically solvent.”
Mr Chaudhry said it was time for Fiji Airways to make some hard decisions with regards to the future of the company.
“Given that international travel will remain subdued for some time, even after the borders are gradually reopened, it makes commercial sense to recast the airline’s fleet size, flight destinations and frequency and operational costs to fit the changed market conditions.
“The airline should not be allowed to keep borrowing more without announcing its recovery plan.”
Fiji Airways CEO Andre Viljoen said last week the loan was a great endorsement for Fiji Airways and its strategy to bring the world to Fiji and the South Pacific.
“ADB’s facility, along with the dedicated support of Fiji Airways staff, management, board and other stakeholders will allow us to weather the turbulence of COVID-19 and sustain our critical role in connecting the world to Fiji and other regional economies,” he said.
