AIR PACIFIC, INTERNATIONAL BANKING PARTNERS FINALISE FINANCING AGREEMENT
CAPTION: The new A330 which will arrive in Nadi on March 19. File photo.
March 14, 2013- Nadi, Fiji – Air Pacific, Fiji’s national carrier soon to be flying as “Fiji Airways” today announced that its international banking partners have signed a financing agreement for the first of three new A330-200 aircraft the airline is purchasing, with a commitment to finance the two additional aircraft secured.
The financing agreement has been guaranteed by the Export Credits Guarantee Department (ECGD) of the British Government with reinsurance being provided by Coface of France and Euler Hermes of Germany.
As previously announced, following a highly robust bidding process Air Pacific selected two major international aviation banks for European export credit financing of its aircraft. The banking partners, German-based: KfW IPEX-Bank and Helaba, have also committed to further finance the two aircraft scheduled to be delivered to the airline in May and November, 2013.
“Air Pacific is extremely pleased with the support demonstrated by both its banking partners and the European Credit Agencies,” said Nalin Patel, Chairman of Air Pacific. “This strong vote of confidence from well-known and highly experienced global financial institutions is a solid endorsement of Fiji’s national carrier, gained through the proven success of its turnaround plan, the strength of its management team, and the stability and strength of Fiji and its economy,” the airline’s Chairman noted.
Given the strong financial backing and Air Pacific’s better than expected performance against its turnaround business plan, Fiji’s national carrier announced intentions to repay part of the pre-delivery aircraft loan provided by the Fiji National Provident Fund (FNPF) earlier than planned.
“This process follows through on our commitment to secure significant offshore investments to complement FNPF’s and our own,” said Dave Pflieger, Managing Director and CEO of Air Pacific. “Assuming the Board’s approval of the arrangement, we plan to demonstrate our appreciation to FNPF for their early support of its national airline and Fiji’s tourism industry with an accelerated payment,” Mr. Pflieger added.
“Thanks to the hard work and dedication of Air Pacific’s employees, the incredible support of the Board and our shareholders, and the enthusiastic and active participation of our banking, business and trade partners around the world, in just three short years Air Pacific is not only surviving; it is poised to thrive,” said Mr. Pflieger.
“With a turnaround plan that is working, and revitalisation and rebranding programmes well-underway, soon-to-be-flying ‘Fiji Airways’ is ready to successfully compete, grow and achieve its goal to become the preferred airline in the South Pacific. In doing so, Fiji’s national carrier will contribute to the island nation it is proud to serve by bringing in more overseas visitors, tourists and business people, in turn creating more jobs and strengthening the economy for years to come. This airline clearly has a bright future in store, and that’s good for Fiji and all Fijians.” Mr. Pflieger said.