The Fijian government has changed airline ownership rules in a new Civil Aviation Ownership and Control of National Airlines Decree which now takes away the veto and supermajority rights given to Qantas in Air Pacific.
The Fijian government owns 51% of Air Pacific while Qantas owns 46.3% of Fiji’s national carrier.
However since 1998, minority shareholder, Qantas has maintained effective control of Air Pacific through supermajority and veto rights over significant areas of the company including the appointment of the Air Pacific Chairman, Deputy Chairman, annual operating budget, any expenditure, new air routes, variations to Air Service schedules, management appointments, employee incentive schemes including bonuses, and numerous other key areas of oversight, control and decision making.
This will change now with effective control to be given to the majority shareholder which is the Fijian government.
Attorney General and Civil Aviation Minister, Aiyaz Sayed-Khaiyum said this step had to be taken to ensure that no one has veto or supermajority powers.
Sayed-Khaiyum said for the domestic run aircraft services, the rules remain the same and there are no changes.
The government said the Civil Aviation Decree ensures that all Fijian registered air carrier companies providing international service must satisfy international requirements and be under the substantial ownership and effective control of a citizen of Fiji.
Sayed-Khaiyum said with the new law, the government has now corrected the activities of prior governments which allowed foreign citizens to control Fiji’s national airlines.
Story by: Vijay Narayan
Feature
Qantas veto and supermajority powers taken away with new decree
