Fiji Airways rejects allegations relating to Israel charter flights

Fiji Airways has strongly rejected the allegations made against the company and its Board of Directors in the widely-published complaint directed to FICAC, in connection with certain charter flights operated by the company between Fiji and Israel in September and October 2023.

The airline company says the allegations primarily concern the legality of a Deed of Forbearance and guarantee entered into between Fiji Airways and the charterer, who faced challenges meeting its payment obligations in connection with the charter flights.

Fiji Airways says the deed was drafted by the company’s legal counsel, and was a prudent and lawful measure taken to protect the company’s interests, and ensure a viable payment plan.

The company says the deed did not reduce the amount payable by the charterer to Fiji Airways for the charter flights, but rather split the payment into a number of instalments.

Fiji Airways confirms that whilst a payment instalment due in December 2023 was missed, the company is in ongoing communication with the charterer, and expects to receive full payment of the outstanding balance of the charter price in the coming weeks.

The deed was not registered on the Personal Property Securities Register, because it does not create a security interest in personal property capable of registration.

Fiji Airways re-emphasises that the decision to operate the charter flights to Israel was based on purely commercial considerations.

A vetting process in relation to the charterer and the various guarantors was undertaken, which included consideration of the charterer’s history of operating successful international charters and making timely payments, and the company’s management and board of directors made an informed business judgment to proceed with the charter flights.

In the meantime, Fiji Airways says it remains committed to transparency, and will cooperate fully with any lawful investigation initiated by FICAC.