The Samoan government has allocated WST4 million tala (USD1.47 million) to Samoa Airways (OL, Apia Faleolo) in its 2023/24 budget handed down in Apia on May 30. The amount represents a sizeable reduction in funding compared to the previous financial year.
The budget papers say the funds are "assistance" to the state-owned carrier and will be provided via the Ministry for Public Enterprises. The Samoa Observer newspaper reports the funding will assist the airline's growth as well as pay off some of its debts including employees' unpaid taxes, Accident Compensation Corporation fees, and passenger ticket refunds. The report cites interim Samoa Airways CEO Fauoo Fata Tielu saying that the airline's debts had been reduced by WST15 million (USD5.5 million) recently, but he adds that substantial liabilities remain. Earlier this year, ch-aviation reported Fauoo saying that he is dealing with structural legacy challenges and would therefore prioritise paying debt owed to non-state entities.
The 2022/23 budget papers show that Samoa Airways was to be provided with WST6 million (USD2.2 million) in the 12 months to June 30, 2023. Neither budget discloses the revenues generated by Samoa Airways, only providing a single amount covering all state-owned enterprises.
Samoa Airways presently flies a fleet of three DHC-6-300s. From its Apia hub, it flies to Maota Savai'i Island as well as destinations in neighbouring American Samoa. With the recent re-opening of Apia Fagali'i Airport, there are reports Samoa Airways is also eyeing resuming flights there.
