Government saves 90% on returned Samoa Airways leased aircraft

By Talaia Mika

APIA, SAMOA – 29 JUNE 2022: The Minister of Samoa Airways, Leatinuu Wayne Sooialo has clarified that the airline is paying only 10 percent of the $160 million it would have paid to the leasing company of the Boeing 737-800 aircraft that was returned last year.

The Minister told Parliament today of the complex issues faced by the Samoa Airways company, its debts and precarious financial situation and the agreement to pay only 10 percent following negotiations between a Special Cabinet appointed Committee and the leasing company.

He said that the agreement was reached early this month, 4 June and the details remain confidential until everything is settled but will be made public in due course.

Meanwhile, Cabinet has terminated the members of the Board –Tuia Pua Letoa, Tia Lafaele Ng Chung and Papalii Sonja Hunter and the airlines staff made redundant.

Cabinet has however appointed an Interim Board which has been tasked to do a 360 degrees Review of the airline’s operations especially its financial situation and its future direction.

The Minister said that the airlines last audited accounts was in 2009 and the Cabinet appointed Committee had been pushing for the airlines audited accounts for 2020/2021 to get a clearer picture of the airlines financial position.

The new Interim Management Board comprise of Tupuola Koki Tuala, Fauo’o Fatu Tielu and Taimalie Charlie Ah Liki.

The Minister said that the termination of the Board was nothing more than aligning the Boards thinking and approach with what the current government wants in running airline.

In parliament today, the former Minister of Civil Aviation, Tapunuu Niko Lee Hang urged the government to look at reinstating the airline with one of two aircrafts to serve its international routes. He said that the current providers will control the schedules and issue expensive tickets for the Samoan people.

Leatinuu however responded that the Member was only thinking of cheaper tickets but the government was looking at curbing the airline’s losses.

“We’ve had nice looking aircrafts with good looking flight attendants, but they were losing flag carriers, so we want a winning flag carrier to carry this (Samoan) flag.” The Minister however said that having Samoa’s own aircrafts for its international routes will be for some time in the future.

Meanwhile, the Ministry of Works, Transport and Infrastructure has approved a licence for Virgin Blue to provide flights between Samoa and Australia.

At the moment, Qantas, Fiji Airways and Air New Zealand are flying into Samoa.

$6m in Budget to Samoa Airways
Samoa Airways is operating on government guarantee loans from institutions such as UTOS. $6 million tala has been approved in the 2022/2023 Budget passed by parliament today.

Responding to MPs questions, the Minister said this money will pay the airline for the sale of the Fagali’i airport.  The funds will the help pay the airlines debts and lease of the returned aircraft as well as payment of the NPF entitlements for redundant staff.