8 Dec 2020

Hotel among Samoan national airline's creditors

8:21 am on 8 December 2020

Samoa's national airline reportedly owes nearly $US155,000 to the Sheraton Samoa Aggie Grey's Hotel.

Sheraton Hotel in Samoa, formerly Aggie Grey's hotel. The business had been run for many years by members of the Grey family after it was founded by Aggie Grey in 1933.

Sheraton Aggie Grey's Photo: Michael Coghlan from Adelaide, Australia

The Samoa Observer newspaper reported the outstanding bill was for rooms booked for foreign staff when the Samoa Airways had a "wet lease" arrangement with Malaysia's Malindo Air.

The airline leased a 737-800 aircraft and staff from Malindo last year, in an arrangement that was terminated in April due to the Covid-19 global pandemic.

Failure to pay the outstanding bill is the latest sign of trouble for the financially stressed airline.

Earlier this week, the Observer obtained financial statements that revealed the airline owed over $US11 million to creditors.

A spokesperson for the hotel confirmed it was among the airline's outstanding creditors.

There has been no comment from both the airline's chief executive officer, Seiuli Alvin Tuala, or the minister for public enterprises, Lautafi Selafi Purcell, about the debt.

Samoa Airways Boeing 727-800 aircraft

Photo: Supplied