The Government of Fiji has provided more than $520 million in guarantees to support Fiji Airways’ financial stability following the impacts of COVID-19.
According to the airline’s 2024 annual report tabled in Parliament recently, Government guarantees totalling $561.4 million were approved to help the national carrier secure additional loans and defer aircraft lease payments. Of this, $521.9 million had been issued as at the reporting date.
The guarantees underpin a wide range of financing facilities with both local and international institutions.
These include loans from the Fiji Development Bank worth $95 million, the Fiji National Provident Fund at $53.6 million, and the Home Finance Company at $30 million.
Additional facilities are held with BRED Bank, including $25.5 million and multiple US dollar loans, as well as a $15 million US loan from the Bank of South Pacific and a US$10 million facility from Home Finance Company.
The support package also includes standby letters of credit from ANZ Bank and BRED Bank, as well as deferred loan repayments and aircraft lease payments from international lenders and lessors, including KfW IPEX Bank, Avolon and GE Capital Aviation Services.
The guarantees were introduced to help Fiji Airways conserve cash and maintain operations during the global aviation downturn, and continue to play a key role in supporting the airline’s financial commitments as it recovers and expands.
