The national airline of the island nation Fiji, Fiji Airways has announced that it has entered into a US$65 million Liquidity Support Facility agreement with Asian Development (ADB). According to the airline, this new capital will allow it to “cover operating costs and meet financial obligations” as passenger demand remains “non-existent” due to border closures.
The US$65 million Liquidity Support Facility will consist of a US$40 million loan from ADB with a further US$25 million loan being provided to Fiji Airways by Leading Asia’s Private Infrastructure Fund (LEAP), which will be overseen and administered by ADB. The CEO of Fiji Airways stated that this support from ADB will enable the Fijian carrier ” to survive and thrive” and is confident that once the country’s borders reopen, this will allow the airline to “will lead the country’s economic recovery through tourism and trade.”
In a company statement seen by AeroNewsX, Fiji Airways Managing Director & Chief Executive Officer, Andre Viljoen said: “We are delighted to receive ADB’s financial support at this critical time. The US$65 million Liquidity Support Facility from ADB is a great endorsement for Fiji Airways and its strategy of bridging the world to Fiji and the South Pacific with a sustainably profitable, high-quality air service.”
Fiji Airways was founded back in 1951 and is the largest inbound operator to Fiji. The airline also has the most comprehensive South Pacific network, connecting the region to and from Australia, New Zealand, Asian and the United States. The country’s national airline is currently part of the Fiji Airlines Group which also consists of Fiji Link, a regional and domestic subsidiary.
The Director for East Asia, Southeast Asia, and the Pacific at ADB Private Sector Operations Department Infrastructure Finance Division, Jackie B. Surtani stated that “COVID-19 has crippled the international aviation industry.” Fiji and other Pacific have been severely affected, as most of these countries not only rely on flights for critical freight, communication services and medical transportation, but they very much depend on tourism. According to Jackie B Surtani the tourism sector “accounts for around one-third of Fiji’s gross domestic product,” which has been completely decimated due to ongoing border closures.
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Source: https://aeronewsx.com/fiji-airways-signs-up-to-us65-million-loan/?utm_source=rss&utm_medium=rss&utm_campaign=fiji-airways-signs-up-to-us65-million-loan
