Fijian Government commends Fiji Airways for early loan repayment to FNPF

Nadi , Fiji ,May 6, 2014- The Fijian Government has congratulated Fiji Airways on the renegotiation of its loan from the Fiji National Provident Fund (FNPF) and continued ability to attract investment and international financiers in the national airlines modernization and growth.

Fiji Attorney General and Minster for Public Enterprise, Civil Aviation and Tourism Aiyaz Sayed -Khaiyum delivered the government?s congratulations at the inaugural Fijian Tourism Expo (FTE), which has attracted more than 150 tourism industry buyers to Denarau island this week.

?Fiji Airways has demonstrated commitment in the public interest and shown that the decision of the Fijian Government and the FNPF to invest in and provide finance to the airline was a smart, commercially viable position to take,? Mr Sayed ?Khaiyum said.

Facilitated by the Fijian Government, the FNPF established a loan facility of FJ$181.2 million at above market interest rates, in order for Fiji Airways to make initial down- payments on three new A330 aircraft. Fiji Airways decided not to fully draw the initial loan amount by over FJ$35 million, and through early pre-payments has bought the new loan facility down to FJ$120 million.

?That Fiji Airways is actually ahead of schedule on its repayments contributes to the strong return Fiji has seen from this investment in what is a highly successful aviation business.? It also demonstrates the fact that FNPF and its Board made a wise decision and not only its members benefitted but so has the country as a whole.

?It is also fantastic to see that since Fijian Government and the FNPF have partnered with the airline, Fiji Airways has started to attract additional interests from financial institutions that recognize its potential. This additional interest is especially exciting to the Fiji Airways workforce which thanks to the introduction of profit-sharing for employees will enjoy the benefits of the airline?s success.

?As a nation, we all benefit from having a strong nation airline. On behalf of the Government and the people of Fiji, we commend Fiji Airways for its sound financial management and strong plans for the future and the FNPF Chair and Board for their acumen,?Mr Sayed-Khaiyum said.

 

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