AIR Fiji is facing financial problems, which has led to a lot of operational problems, a senior Tuvalu Government source has confirmed.
The senior Tuvalu official said his government bailed out the company by lending $0.5million for fuel purchasing late last year and was not in a position to be able to do so again this year.
"The company is in deep financial problems, we have no money to buy spare parts and so on," the source said. "But Tuvalu is not going to give up yet on the company."
Tuvalu and Chinese company, Chactic, own more than 80 per cent shares in the airline.
Last year, the company had to ground its operations as it had reached its credit limit with fuel company, Air BP. The Tuvalu National Bank was brought in to bail the company out through the loan.
Efforts to get comments from Air Fiji management was futile.