Samoa Airways will take out a loan from the Unit Trust of Samoa so it can partly settle redundancy pay for staff.
Minister for Public Enterprises, Leatinu'u Wayne So'oialo, said the airline's interim board decided to pay staff with the loan and other sources.
Leatinu'u said the interim board made the decision to pay workers in full but it is only back-dated to 2021 and it doesn't include 2020.
Samoa Airways Twin Otter at American Samoa's Tafuna International Airport. Photo: Dominic Godfrey / RNZ Pacific
Samoa Airways staff were impacted by covid-19 border closures and were only able to get half their pay entitlements.
Meanwhile, Leatinu'u said the company is looking for workers to carry out cargo handling work at the Faleolo airport as the airline returns to full operation.
The cargo handling contract doesn't include jet operations.
Samoa Airways only flies between Samoa and American Samoa after its leased jet was sent back by the FAST government soon after taking office.
Pre-pandemic it connected Samoa to Sydney, Brisbane and Auckland.