Fiji Airways (FJ, Nadi) has received a FJD93.1 million Fijian dollars (USD42 million) injection from the Fiji National Provident Fund (FNPF), which has acquired a 30.02% stake in the national carrier, thereby becoming the second-largest shareholder after the Fijian government, which holds 51%.
The national provident fund, to which all employed Fijians between the ages of 15 and 55 contribute a percentage of their salary, aims to broaden its investment in the travel and tourism sector, FNPF Chief Executive Officer Viliame Vodonaivalu said in a statement.
“To date, our members have gained FJD92 million (USD41.2 million) in interest from our lending agreement with Fiji Airways. Now that we own shares, our members will also gain from returns that the airline would make in this post-pandemic growth cycle,” he said.
“Fiji Airways has always been on our radar – we saw this as an opportunity and believe that there will be full recovery of our investment, given that this strategic national asset has high return potential both in interest income and capital appreciation, apart from the obvious tourism synergies,” Vodonaivalu said.
He added that Fiji Airways was an enabler to other investment opportunities such as medical tourism, aged-care, and commercial agriculture ventures for export, whilst also having a synergistic relationship with FNPF’s substantial hotel portfolio. The fund’s investment follows an intensive due diligence process that started in September.
Apart from the Fijian Government and FNPF, other shareholders in Fiji Airways include Qantas, newcomer Unit Trust of Fiji with 1.85%, Air New Zealand, and other Pacific Island countries.
FNPF has to date paid over FJD1.6 billion (USD717 million) in interest for the last five years to its members and holds assets totalling FJD8.2 billion (USD3.6 billion).
