Fiji Airways lands $65mn in bank loans

Fiji Airways (FJ, Nadi) has signed a USD65 million liquidity support facility with the Asian Development Bank (ADB) to help cover its operating costs and meet its financial obligations during the international travel downturn caused by COVID-19-linked border closures. The financing comprises a USD40 million loan from ADB and a further USD25 million loan from Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by the ADB. The facility is being made available to Fiji’s Air Pacific Limited, which operates as Fiji Airways and through its wholly-owned subsidiary Fiji Link (FJA, Nadi), ADB explained in a statement. Fiji Airways chief executive officer, André Viljoen, in a separate statement, said the financial support came at a critical time and would allow the national carrier to weather COVID-19 and sustain its critical air access role for Fijians. He said the airline was focusing on “future fit” measures to survive and thrive once borders re-opened, but did not elaborate. He previously said the airline was cutting its costs by 20%, renegotiating all contracts, and upping its cargo operations. The airline, in combination with Fiji Link, operates a mixed fleet of 19 aircraft, according to the ch-aviation fleets advanced module. These include five A330-200s, one A330-300, two A350-900s, one ATR42-600, two ATR72-600, two B737-8, two B737-800s, and four DHC-6-400s. Jackie B. Surtani, ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific, said COVID-19 had severely affected Fiji and other Pacific countries, which relied on air links for critical freight, health, education, communication services, and especially for tourism, which accounted for one-third of Fiji’s Gross Domestic Product (GDP). Fiji Airways is the largest inbound operator to Fiji and has the most comprehensive South Pacific network, connecting the region to and from Australia, New Zealand, the United States, and Asia. It normally operates to Auckland Int’l, Hong Kong Int’l, Honiara (Solomon Islands), Port Vila (Vanuatu), Los Angeles Int’l, and Singapore Changi, the ch-aviation schedules data reveals. Founded in 1951, the Fiji Airways Group comprises Fiji Airways and its subsidiaries: Fiji Link, its domestic and regional carrier; Pacific Call Comm Ltd; and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island, Nadi. LEAP was established in 2016 with a USD1.5 billion capital commitment from the Japan International Cooperation Agency.