Export-Import Bank was obliged to repossess Air Nauru
's sole aircraft.
The Taiwan government funded the purchase of a new Boeing 737 for the national carrier, Air Nauru, Nauruan Transport Minister Keiren Keke said in a statement.
Since the repossession, Air Nauru has run costly charter services to maintain essential services between Nauru, Kiribati, Fiji, the Marshall Islands, the Solomon Islands and Australia.
The bank said that the aircraft was surrendered to a trustee for Ex-Im Bank by Air Nauru
on 18 December 2005 pursuant to an Australian High Court ruling.
had agreed to: (a) ensure that Eximbank would give Nauru enough additional time to pay its debts to Eximbank to assure the operational viability of Air Nauru; (b) come up with enough money for Nauru to erase any problems Nauru might have in relation to re-payment of the Eximbank financing; and (c) prevent Eximbank from enforcing any strict contractual rights which it might otherwise have to seize and sell the aircraft.
The additional time to pay which the United States was alleged to have promised was no more specific than the time sufficient to ensure the operational viability of Air Nauru. Neither the amount of the funds to be provided to Nauru nor the time when that provision was to be made was stated."
For example, Air Nauru
is estimated to have lost about $US 250 million since 1970, (Van Atta 1997, 90).
Air Nauru and Solomon Airlines have signed a new General Sales Agency Agreement making Air Solomon general sales agent for Air Nauru in the Solomon Islands.
The agreement covers international and air cargo sales allowing Solomon Air to sell and promote Air Nauru's destinations in Nauru, the Marshall Islands, Kiribati and Fiji.
's fleet only has one Boeing 737-400 aircraft which was grounded for four weeks last month.
The grounding of Air Nauru
means that the island is effectively cut off from the world as no other airline makes scheduled flights to the island.