Govt receives $45 million dividend from AFL
Fiji Airports handed over $45 million in dividends to the Fijian Government at Ro Lalabalavu House in Suva yesterday.
“Fiji Airports is the largest dividend payer to the Government of Fiji,” said the Minister for Economy and Attorney-General Aiyaz Sayed-Khaiyum at the hand-over ceremony.
“It has now reached unprecedented levels of payment, the last payment received was $45 million and today again there is another $45 million.
“If you combine the amount of dividend the Fiji Airports has paid in the past 4-5 years it is more than Fiji Airports has ever paid before its entire inception. This says quite a lot of the position Fiji Airports has.”
Mr Sayed-Khaiyum said the newly renovated Nadi Airport is amongst the world’s best.
“In many ways Fiji Airports has become a model state owned enterprise. Its profitability has grown by a 1,000 per cent or tenfold in the last 5 years,” Mr Sayed-Khaiyum said.
“It is giving record, unprecedented and sustainable dividends to its shareholder, the Government.
“Nadi International Airport received international recognition through the Skytrax sixth most improved airport in the world. “The upgraded Nadi International Airport was successfully delivered lifting standards of infrastructure in Fiji. It was officially opened by the Prime Minister 2 months ago and is a pride for all Fijians. “Fiji Airports through the support and vision of the Bainimarama Government has embarked upon an ambitious and unprecedented capital infrastructure upgrade program for these airports.”
“Everybody’s talking about it, both domestically; a lot of Fijians have come up to us even on the street saying how proud they are in seeing the Nadi Airport the way it is renovated as well as international accolades,” Mr Sayed-Khaiyum said.
On other airport development work by Fiji Airports, Mr SayedKhaiyum said:
“Specifically, Rotuma runway expansion project is almost complete and awaiting scheduled operations from September,” Mr Sayed-Khaiyum said.
“This will allow larger aircraft operations that in turn will mean economic growth through tourism and trade for the Rotuman people. “Rotuma has until now been largely isolated from mainland Fiji. Rotuma has some of the most beautiful pristine beaches and ocean. “Rotuma runway upgrade has been a dream for the last 4 decades. But until now no past Governments had the will to put that dream into a reality.”
The final outcome of the Rotuma Airport will be announced at the end of this month or in September.
Mr Sayed-Khaiyum said the Labasa Airport night lights have been installed and are awaiting the commencement of night flights in the next couple of months. “Savusavu and Labasa will have brand new domestic terminals by 2020. Upon acquisition of land, Matei runway upgrade will commence for larger aircraft operations into Taveuni,” Mr SayedKhaiyum said.
“Runway remedial works are going to be done for other outer island airports in Bureta and Ono-i-Lau.” He also mentioned that there will be a high level of potential for travellers who want to get a connecting flight from Labasa to elsewhere. He also thanked Tui Macuata Ratu Wiliame Katonivere’s assistance to facilitate the land that was required to ensure that the night flight capacity was developed.
Mr Sayed-Khaiyum said the Nausori runway upgrade project commences in a couple of months’ time.
He said this will boost development of the economies of
Tailevu to Pacific Harbour. “The landscape of the network of airports is changing at a fast pace under the Bainimarama Government’s vision of an inclusive and connected Fiji,” said Mr SayedKhaiyum.
“If we have the lengthened runway, it will mean that we will have more direct flights from metropolitan cities coming directly to not only Nadi but also Nausori so it means enormous opportunities for Fiji.”
“There are other tourism opportunities in the Central division, so there needs to be access to direct flights.
“We are going to have the extension of runway carried out and once the runway is lengthened, we will have the upgrade of the Nausori terminal and many people would agree to that,” Mr SayedKhaiyum added.
Aviation Academy
Mr Sayed-Khaiyum also announced that the Aviation Academy will be opening next year for students. A large number of airline companies have expressed their interest in this academy.
In addition, the A-G said that the Fijian government was thankful to the Fiji Airports board and looked forward to bigger and better projects.
“We would like to have projects that will expand our economy and make it robust. It will hopefully make Vanua Levu mainstream economic life of Fiji.
Comparison
In addition, Fiji Airports Executive Chairman Faiz Khan said: “With the dividend payout of $45 million today, we have paid $145 million in dividends to our shareholder over the last 5 years. “By comparison, Fiji Airports had paid $14.91 million in dividends in its entire history prior to that.”
“The significance of this must be put into context with the fact that over the last 5 years, Fiji Airports has undertaken some of the most major capital infrastructure upgrades in its history,” said Mr Khan.
“5 years ago we embarked on a pursuit of balance and equity. “Whilst tenants are paying more in rents through a competitive tender process, their turnovers have gone up by multiple times through focus on better brands on offer.
“Airlines are paying more in aeronautical charges, yet our charges are 2 to 3 times less than the published charges in Australian and New Zealand Airports, he said. “And lower than most airports in the Pacific countries. We are building world class infrastructure without using that as an excuse not to pay dividends.
“We are controlling our operating and capital expenditure like never before to achieve ‘value-for-money’ outcomes,” Mr Khan said. “Our people are making presentations in International Civil Aviation Organization (ICAO) held seminars globally and broadening their horizons.
“We are hosting unprecedented ICAO and aviation global events in Fiji.
“We are being told by international stakeholders such as ICAO and Airport Council International (ACI) that Fiji is ambitious in its aviation sector, both as an Air Navigation Service Provider and as an airport operator,” said Mr Khan. “Our focus has always been win/ win sustainable and collaborative outcomes for all stakeholders. “This has never been just a numbers pursuit for us. Numbers are a by-product of our values.
“This is evident in the fact that we are spending more monies than ever before in upgrading our network of loss making airports,” Mr Khan said.
“Last year we spent $8.44 million in capital projects and operating expenditure into these airports.
“Some of these airports currently only earn $1,000 per annum in gross landing fees.
“Yet we are developing these airports under the direction and vision of our shareholder the Government,” said Mr Khan.
Mr Khan added that: “Imagine if we can declare such record dividends and yet continue to develop our network of airports to world class standards.
“That’s the type of balance and equity we are continually striving to achieve. Imagine if we can maintain this balance.”
He also thanked the Board, the hard working colleagues, stakeholders, the A-G for his ongoing guidance and support, and the Government shareholder for its vision.