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COVID-19

Support by government will bolster Fiji Airways operations

May 26, 2020 2:35 pm
The sovereign guarantees issued by the government in support of FJ$450 million-worth of initiatives is aimed at strengthening the Fiji Airways’ cash reserves. [File Photo]

The sovereign guarantees issued by the government in support of FJ$450 million-worth of initiatives is aimed at strengthening the Fiji Airways’ cash reserves.

Fiji Airways Chief Executive Andre Viljoen says this includes payment deferrals, and new long-term debt financing and other financing actions required to tide the company through the COVID-19 crisis.

Viljoen says the bulk of the airline’s international services have been cancelled through to the end of June 2020, with further reductions expected in July and August, which is caused by the prolonged COVID-19 pandemic.

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This has resulted in the national airline’s revenue to dry up, whilst monthly fixed costs remain.

He says they are extremely grateful to the government for supporting the Fiji Airways and providing these guarantees, as without the governments support, the Fiji Airways would not survive.

Fiji Airways will continue operating freighter services to support the vital supply chain for Fiji’s export sector, and the economy as a whole which have greatly benefitted primary producers, farmers, fisherfolk, workers, exporters and consumers.

Between 1 April to 14 May, the airline carried over 1000 tonnes of freight between Fiji and key trading partners like Australia, New Zealand, the United States and Hong Kong.

Just over 622 tonnes of freight carried were exports, comprising 75 percent of fresh produce, 14 percent garments, 6 percent Kava and 3 percent seafood

Inbound freight consisted of consignments important to Fijian businesses, as well as essential supplies like vaccines, test kits, medical supplies and humanitarian aid.

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