Concerns have been raised that the government cannot exercise its powers in making changes to certain aspects of the operations of Fiji's international airline, Air Pacific.
Interim Attorney General Aiyaz Sayed-Khaiyum said the government does not have the powers although it is the majority shareholder in the airline company.
"The Government of Fiji, as you know, owns 51% of Air Pacific. However, despite owning 51% of Air Pacific, the Government of Fiji is unable to access powers that it may normally do as the majority shareholder. For example, under the articles of association, Qantas, which owns 46% of Air Pacific, has veto powers in a number of key operational areas. These include: The commencement of any new air routes, the issuance of sales, the adoption of an annual operating budget, the adoption of material variation by the directors of the dividend policy of the company, and the entry by Air Pacific into any major commercial agreement." Interim Attorney General Aiyaz Sayed-Khaiyum.
Sayed-Khaiyum said the growth of Air Pacific is definitely being affected due to the veto powers being given for key areas to Qantas.
"We, from the Government’s perspective, need to be mindful of the fact that we own 51%of Air Pacific and we need to have a more direct input into the operations and the integration of Air Pacific into the economic life of Fiji. If you are the majority shareholder of the company, obviously you’d like to have more say in the critical and strategic development of the company. Now some of these areas that I’ve highlighted are obviously key strategic areas in terms of the development of Air Pacific and for us as a nation. We obviously have our own interests as a sovereign state. We are mindful to have various – for example in the area of connectivity - routes as South East Asia. When in particular the shareholder that owns a bit of ours, runs its own airline. Obviously there are issues that could affect the potential growth of Air Pacific." Interim Attorney General Aiyaz Sayed-Khaiyum.
The Interim Government has urged members of the public to make submissions to the cabinet subcommittee appointed to review the performance and operations of Air Pacific.
People have 28 days from today to make submissions to the Cabinet Task Force through the Ministry of Foreign Affairs and Aviation.
Sayed-Khaiyum said he has spoken to Air Pacific CEO, John Campbell as a matter of courtesy, to inform him about the public submissions being sought on the airline's operations.
Meanwhile, Fijivillage sent questions to Campbell on Air Pacific's operations on the 22nd of last month. We are yet to get a reply.
