Region: East Asia and Pacific
Brief on IFC's PPP advisory support to the government of Samoa in a PPP to establish a new national airline, Virgin Samoa (formerly Polynesian Blue) and restructuring the flagship carrier.
A joint venture between the government of Samoa and Australia’s Virgin Blue, a low-cost carrier, turned an annual $7.5 million government subsidy into a $6.9 million profit in just two years. IFC served as the lead advisor for the innovative public- private partnership, which established a new national airline, Virgin Samoa (formerly Polynesian Blue), and restructured the existing flagship carrier. The agreement was signed in September 2005. By 2009, 243,000 people received improved airline service, and consumers saved $57.7 million in reduced airfares between 2005 and 2009.
The joint venture agreement allowed Polynesian Blue to take over the international routes and the restructured flagship carrier, Polynesian Airlines, to operate regional and local flights.
Updated: June 27, 2022