Keywords: Pacific Island Countries, National Airlines, fiscal risks, Public Financial Management Author’s E-Mail Address: vbalasundharam@imf.org , lhunter@imf.org , ilavea@imf.org , and pseeds@imf.org Contents I. INTRODUCTION II. STATE OF NATIONAL AIRLINES IN PICs III. THE PFM PERSPECTIVE: STRENGTHENING GOVERNANCE, OVERSIGHT AND TRANSPARENCY A. Governance and Institutional Frameworks B. Airline Planning Process C. Transparency of Airline Support in the National Budget D. Budget Execution Considerations E. Reporting and Monitoring IV. RISK
not have regulations governing the national airlines. In addition, in terms of coverage, most of the governance laws do not require approval of capital expenditures and borrowing including lease agreements, both of which pose the largest risks to the airline and the government. B. Airline Planning Process Best practice: Airline plans approved by government including borrowing and investments plans, planned new leases and proposed guarantees . Airlines are responsible for setting their own corporate plans which should include: strategic goals; operating and