Solomon Airlines Limited

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The Accountable and Responsible Minister
Minister for Finance and Treasury

 

Board of Directors

Director Position Expiry
Mr. Baoro Laxton-Koraua Chairman 30/01/2029
Mrs. Areau Matang Hivu Member 05/03/2027
Mr. Jackson Kiloe Member 26/09/2025
Mr. Andrew Nihopara Member 11/03/2027
Mr. Frank Wickham Member 21/10/2025
Mr. Bob Pollard Member 11/03/2026
Mr. Albert Kabui Member 30/0/2029

Activities
Solomon Airlines Limited (SAL) is a Solomon Islands company registered under the Companies Act 2009. 100% of its shares are owned by the Government of Solomon Islands, through the Investment Corporation of the Solomon Islands (82.3%) and Solomon Island Holdings (17.7%). This SOE is commercially focused to provide domestic and international air and ground handling services that will fully maximize the benefits of our customers.

The company is subject to the State-owned Enterprises Act 2007 and State-owned Enterprises Regulations 2010.

Solomon Airlines is governed by a board of directors that is responsible to the Minister of Finance and Treasury, being the Accountable Minister for Solomon Airlines Limited.

Vision and Mission
Pacific’s best emerging airline, with an exceptional delivery of safe, sustainable, and friendly service. With its mission to deliver exceptional air travel experiences, we connect the Solomon Islands, the Pacific, and beyond with safety and reliability, setting the standard for best practices in airline operations.

Community Service Obligations
Solomon Airlines received Community Service Obligations of a total of SBD19.57 million from 2018 – 2022. Solomon Airlines continues to provide an essential service to 22 airports scattered across the
nation’s archipelago and fills a vital role by providing quick air transport for business, Government
Travel, carrying parts, food, mail, medical supplies etc. In many instances the airline provides the only
way a person in a village can obtain essential medical treatment. Adding to the cost flying to remote
uneconomical routes is the poor state of many airfield surfaces giving rise to high repair and
maintenance costs.

Financial Highlights

Financial Highlights (SBD ‘000) 2018 2019 2020 2021 2022 5-yr Average
Revenue 294,121 316,187 195,444 196,810 270,921  254,697
Net Profit After Tax 31,354 -41,382 -30,855 -7,450 -2,241 -10,115
CSO payments 2,766 3,800 4,000 4,500 4,500  3913
Total Assets 209,179 172,766 203,352 253,954 264,164  220,683
Total Liabilities 176,458 181,427 250,811 293,987 295,259  239,589
Shareholders’ Funds 32,720 -8,662 -47,460 -40,033 -31,095  -18,906
ROE % 96% – – – – 19%
ROA % 15% -24% -15% -3% -1% -6%
Asset Utilization 140% 183% 96% 77% 103% 120%
Cash / Current liabilities 0.14 0.19 0.12 0.13 0.15 0.15

SAL FS

 

 

SALs revenue declines massively in 2020 and 2021 due to the outbreak of the COVID -19, which most of SAL flights are cancelled and border restrictions are in place. this has reflected on the profitability trend as well during the same period 2020 and 2021. In 2022, revenue increased by 38% while expenses had also parallel with the increasing trend. The total loss was reduced significantly compared to the previous loss in 2021.  These were driven by the lifting of the board restriction and resumptions of commercial services.

Average return on asset for SAL during this 5-year period is -6%, this is a challenge for SAL as they have not been fully utilizing their assets. SAL return on equity remains low than expected as trend shows a negative ROE all throughout the 5-year period. Thus, this means that SAL is less efficient in using it equity capital to generate profit. However, SAL is very certain with internal restructuring, reform and government support they will become more efficient in the next 5 years.

Important Documents

SAL Financial Statements: 2014 | 2015 I 2016 I 2017 I 2018 I 2019 I 2022

Statement of Corporative objectives:

Annual Reports: 2014 I 2016

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