The Asian Development Bank (ADB) has approved a $15 million financing package to support Naoero Airlines’ acquisition of a pre-owned Boeing 737-800 as the carrier moves to replace an ageing aircraft and strengthen air connectivity across the Pacific.
The financing will be provided to Naoero 40997 Leasing Corporation, a wholly owned subsidiary of Naoero Air Corporation. The package comprises a $5 million ADB loan, a $5 million concessional loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP2) and a reimbursable grant of up to $5 million from the Asian Development Fund’s Private Sector Window.
The replacement aircraft is expected to increase passenger capacity while improving fuel efficiency, maintenance economics and operational reliability. The 737-800 will support Naoero Airlines’ passenger and cargo operations across its regional network.
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Naoero Airlines connects Naoero with destinations including the Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands and Australia. The aircraft replacement is intended to improve the reliability of passenger and freight services while supporting trade and supply-chain connectivity between remote Pacific markets.
The financing was arranged through ADB’s Wayfinder Pacific programme, which combines commercial and concessional funding to support private-sector investment in smaller Pacific economies. ADB said the transaction represents its first private-sector investment in Naoero.
Established in 1996, Naoero Air Corporation is wholly owned by the Government of Naoero. The 737-800 acquisition forms part of the airline’s fleet renewal efforts, with the newer aircraft expected to provide additional capacity and improved operational efficiency across its regional network.
