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Fiji Airports Pays $30 Million In Dividends

Fiji Airports made audited net operating profits before tax of $79.2m in 2018.
23 Jun 2019 14:49
Fiji Airports Pays $30 Million In Dividends
Attorney-General Aiyaz Sayed-Khaiyum receives dividend cheque from Fiji Airports board member Ratu Wiliame Katonivere and Acting CEO Faiz Khan with staff at the Fiji Airports Limited HQ in Namaka. Photo: WAISEA NASOKIA

Fiji Airports has declared $30m in dividends to Government as its shareholder.

Fiji Airports made audited net operating profits before tax of $79.2m in 2018.

“The payment of an additional $30m by way of dividend today, marks a total dividends payout of $175m to the Government as our shareholder, over the last six years.

This remarkable and unprecedented achievement for a Fijian State Owned Enterprise was led by former Executive Chairman and now the Acting CEO, Mr Faiz Khan, under the strategic direction of the Board and with the support of a great team,” said newly appointed Chairman, Mr Geoffrey Shaw.

By comparison, in the entire history of Fiji Airports prior to the last six years, less than $15m in dividends was declared and paid.

The Chairman elaborated: “The achievement of generating this excess cash flow, providing significant returns to our shareholder over the last six years, is made even more remarkable in that:

Fiji Airports has over this period, simultaneously carried out unprecedented levels of successful infrastructure upgrades and replacements to revitalise and renew its obsolete, outdated and degrading airport and air navigation infrastructure.

Significantly, the aeronautical fees and charges paid to Fiji Airports is one of the lowest in the world, whilst operating in a relatively low traffic environment.”

Shaw continued, “Additionally, one of the biggest contributors enabling the payment of these unprecedented dividends is the ‘value-for-money’ proposition for infrastructure expenditure conducted by Fiji Airports.

To give one simple example; had we spent $280m on the Nadi Airport Terminal Modernisation Project (NATMP) – as independent benchmarking reports based on actual as-built comparisons with Australian airports showed for similar sized and scoped projects – rather than the $129m expended on the NATMP, these dividend payments to our shareholder would not have been possible.”

“Fiji Airports embraces a culture of excellence and continuous improvement in its pursuit of delivering the highest standards of service to its customers with safety, efficiency and environmental best practice awareness in mind,” Shaw stated.

“However, Fiji Airports has a challenging journey ahead with mounting operating cost pressures and a massive capital works program scheduled as part of its Master Planning.

On behalf of the Board of Directors, I would like to acknowledge, congratulate and thank the Acting CEO and his team for this remarkable performance and achievement.

I thank Government as our shareholder and in turn, the Ministry of Economy for its support. I also thank my fellow Directors for planning and embracing a path of sound strategic direction for the future of Fiji Airports,” said Mr Shaw.

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