Samoa Airways has managed to pay $15million owed to non-government agencies as of 8 March this year, but they still have a long way to go with the remaining debt.
Samoa Observer reports Interim Chief Executive Officer, Fauo’o Fatu Tielu said the company has managed to use its own funds so far.
“The company is doing fine although there is still much to do but we’re operating,” he said.
The Boeing 737-800, Samoa Airways’ aircraft lease officially ceased with the settlement of a USD$4.6 million payment and the transfer of registration to an Australian airline.
Fauo’o added that the $2 million tālā owed to the Government in unpaid employee income taxes is yet to be settled as they are still prioritizing non-government agencies’ first.
“If we pay with the current fund the company won’t be able to run its current operation,” Fauoo said.
Staff who were employed by the national carrier since 2019 initially raised issues with the airline deducting P.A.Y.E. (Pay As You Earn) from their paychecks but those monies were never paid to the Government.
Fauo’o confirmed the airline still owes those unpaid taxes to the Government, but “not to employees”.
This included other old debts totaling close to $30 million – excluding the Unit Trust of Samoa loan of over $55 million – is being discussed with the Government on how and when to repay them.
In mid March this year, an Asian Development Bank report on State-owned entities in the Pacific Islands nations including Samoa said Samoa Airways since it commenced operations in November 2017, accumulated losses of $51.5 million tālā in its first three years of operation.
Cumulative losses wiped out shareholders’ funds which, by 30 June 2020, were $17.9 million tālā.
