Air Tahiti Nui seeks 8.5 billion CFP franc loan for cabin upgrades

The French Polynesian government is considering an 8.5 billion CFP franc loan to Air Tahiti Nui to fund the complete cabin refurbishment of four aircraft. This proposal serves as an alternative to a ‘sale and leaseback’ model previously suggested by the airline, which government officials opposed to avoid losing ownership of the company’s aircraft.

Warren Dexter stated that the loan, set at a 2.5% interest rate, is preferable to a subsidy and could generate 1.2 billion CFP francs in interest over ten years. The investment is part of a 2026–2029 recovery plan aimed at addressing a decline in market share at Tahiti-Faa’a airport, which has dropped from 61% to 42%.

While the airline projects the upgrades could generate an additional 4 billion CFP francs annually and lead to a financial equilibrium by 2029, the proposal faces debate among local representatives. Some officials have questioned whether these public funds would be better utilized for social housing or addressing the cost of living.