Fiji Airways Managing Director and CEO, Andre Viljoen says the airline company is not insolvent by any definition of the word, whether you look at the company’s cash flow or their balance sheet.
Viljoen says in the past 10 days, they have completed the audited financial statements for the year ended 31st December 2019.
He says the sign off marked the completion of a comprehensive audit by PWC of the company’s financial position.
Viljoen confirms this includes an assessment of their solvency and ability to meet future obligations.
The audited accounts are always filed with the Registrar of Companies Office and is available for the public.
The 2019 accounts will be filed within the next few days.
Fiji Airways has also confirmed to Fijivillage that the ongoing cost savings and cash preservation measures which include aircraft loan and rental payment deferrals, have progressively reduced the company’s monthly recurring fixed costs from $38 million to around $20 million until June 2021.
Viljoen says this, together with the company’s financing actions, will adequately bolster their cash reserves while they continue to implement further cost reductions.
Most of the aircraft loan and rental payment deferrals range from 9 to 12 months and are repayable over 3 to 6 years.
The new loans’ repayment terms now range from 6 to 15 years, with interest-only payments required for the first two years.
Viljoen says these financing actions puts Fiji Airways in the best possible position to get through this crisis.
He says the forecast for the cash reserve requirements are based on their ‘Worse Case’ scenario, which anticipates an extended period of border closures and a very slow ramp-up of travel demand thereafter.
The CEO says these scenarios have been independently validated by a leading international merchant bank and aviation consultancy.
Viljoen says they are extremely saddened by the ongoing detrimental assertions publicly about the airline.
He says recent press statements that suggest otherwise are simply false, and he is happy to enlighten those who have made such allegations.
Viljoen further says that whilst their lessors and financiers have the utmost confidence in Fiji Airways’ financial position, evidenced by the fact that they have recently supported them with payment deferrals and new loan facilities, it is nevertheless very damaging to the company’s reputation to have such false allegations circulating throughout the media.
He assures the Fijian people that their national airline is not insolvent or facing liquidation or bankruptcy.
In light of the recent heightened interest in Fiji Airways, Viljoen confirmed that he will host a series of briefings in Suva and Nadi for premier customers and the business community in the coming weeks.
These briefings, called ‘Know Your Airline’, will provide up-to-date information about the airline to these stakeholders.
We are getting Travel Ready and Commercial Ready – Viljoen
CEO says $455 million Govt Guarantees is not a cash bailout using taxpayer funds
Fiji Airways CEO and Managing Director, Andre Viljoen says they are working hard to get Travel Ready and Commercial Ready to bring the maximum number of passengers to Fiji when border restrictions ease up.
Viljoen says the airline has engaged with the hotels through a special taskforce to create substantially discounted holiday packages using the Fijian Government’s Recovery Rebate Package Programme travel stipend and many tax reductions to entice the maximum number of visitors back to Fiji from any market that opens up.
The reductions for these packages are upto 60 to 70% compared to pre-COVID prices.
Viljoen says there is also a misunderstanding regarding the $455 million Government Guarantees.
He says this is not a cash bailout using taxpayer funds provided to Fiji Airways by the Fijian Government.
The CEO says the financiers providing the new loans and the aircraft loan and rental deferrals have undertaken their own due diligence and have satisfied themselves that Fiji Airways can repay their obligations going forward.
He says the Fijian Government’s Guarantees, provide the additional security and comfort for these loans and deferrals.
Viljoen says Government has guaranteed large loans for other government-related entities in the past. He says these guarantees, as required under the law, need to be approved by Parliament, with all relevant details disclosed.
Publish the airline’s financial accounts - Prof Biman Prasad
Fiji Airways audited accounts are available to the public from the Registrar of Companies Office
National Federation Party Leader, Professor Biman Prasad says Fiji Airways CEO and Managing Director, Andre Viljoen should publish all the annual audited accounts of the airline for the last 10 years however the airline and the Government have said that all audited accounts are available to the public from the Office of the Registrar of Companies.
Following Viljoen’s comments that the airline is not insolvent, Prasad said Viljoen, his Chairman and his Minister are always ready to go public, with the required blaze of publicity to announce a profit but for more than 10 years they have refused to give them all the airline’s numbers.
Professor Prasad says Viljoen tells us that Fiji Airways’ lenders during this crisis have done due diligence and the lenders are satisfied that the airline can repay its financial obligations.
The NFP Leader says if that is true, then there is an obvious question for Viljoen - why do they want the Fijian Government to guarantee those obligations?
He also says that a few days ago, Viljoen said he would not respond to political statements, which Prasad says is an arrogant statement from a man who had just asked Fiji’s politicians to approve a $455 million Government guarantee.
Fiji Airways' 2019 Financial Statements will soon be available at the Registrar of Companies Office. This was confirmed by Fiji Airways and the Government at last week's announcement of the airline's 2019 financial results.
Audited Financial Statements of all large companies in Fiji are required to be submitted to the Registrar of Companies Office 4 months after completion of audits, although its understood that the Office can give extensions for the filings if requested.
The company says all Fiji Airways audited statements from 2018 dating back years is available publicly at the Registrar of Companies Office, as it is for all large companies.
A search for an audit report of the company athe Registrar of Companies Office is $10.90. People can print upto 10 pages of the report for $10.90 and it would costs 55 cents a page from page 11 onwards.
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