GOVERNMENT has clarified that the stance it took to regain control of Fiji Airways from QANTAS was done to protect the country’s national airline.
Civil Aviation Minister Aiyaz Sayed-Khaiyum told Parliament that QANTAS owned 46 per cent of shares and the Fijian Government 51 per cent.
Mr Sayed-Khaiyum said while Fiji was the majority shareholder, it had no effective control on the airline.
“As a result of which we introduced the new law called the Civil Aviation Ownership and Control Airlines Decree 2012,” he said.
Mr Sayed-Khaiyum said the decree essentially gave effective control to the majority shareholder of Air Pacific, now Fiji Airways, because the Fijian Government owned 51 per cent of Fiji Airways.
He said the decisions taken then was in no way done to undermine the share value and existing relations with QANTAS, but to have effective control of the national airline and in turn protect the country’s tourism industry.
Mr Sayed-Khaiyum said the Government had enhanced the share value of QANTAS shares in Fiji Airways because they were really doing well.
“In order to protect the tourism industry, we as a country need to have effective control of our national airline.
“They still own the shares, they’re still receiving dividends, in the meantime, Fiji Airways is making a lot more money than it made before.
