Parliament has passed a motion moved by Finance Minister Esrom Immanuel, seeking approval for the Government to guarantee an additional $200 million borrowing by Fiji Airways for three years, from August 1st, 2026, to June 30th, 2029.
Immanuel says the guarantee is needed because Fiji Airways is facing significant financial pressure from soaring aviation fuel costs and requires additional liquidity and working capital support.
He says the airline’s fuel bill increased by around $113 million in the second quarter of 2026 compared with the same period last year.
While speaking on the motion, Opposition MPs Premila Kumar and Faiyaz Koya backed the Government’s motion but questioned why the national airline has reached a position where additional Government-backed borrowing is now required.
Koya says the Opposition supports the Government guarantee but wants answers on how Fiji Airways reached its current financial position, particularly given that fuel price volatility is a well-known risk in the aviation industry.
Insert: Koya - Questions need to be answered Aug 17
He says Fiji Airways must be properly controlled and scrutinised, questioning whether it is top-heavy, overspending or operating with an inefficient cost structure.
He adds that supporting Fiji Airways cannot simply mean responding when financial pressure reaches a critical point, and the airline needs measures that put it on a firm and sustainable footing.
Opposition Member Premila Kumar similarly backed the guarantee but says Parliament needs to know where Fiji Airways is reducing costs, including its management and staffing structure, and whether the measures being implemented are delivering the required efficiencies.
Insert: Premila Kumar - Accountability needed Aug 17
She also questioned Fiji Airways’ investment in non-core assets, particularly the Sofitel Resort and Spa, and called for greater scrutiny of its borrowing, debt repayments, domestic fares and other commercial decisions.
Kumar says thousands of Fijians depend on Fiji Airways for their livelihoods and that weakening the national airline would have serious consequences for the economy.
Both MPs nevertheless stressed that Fiji Airways is too important to Fiji’s economy to fail.
The Government expects Fiji Airways to return to sustainable profitability by 2027, supported by cost reductions, operational efficiencies, route optimisation and other reforms.
The motion has been agreed to unanimously.
