Operational Efficiency and Growth through Managerial Reform at State-Owned Enterprises

The Airport Kiribati Authority (AKA), a state-owned enterprise established under the Airport Authority Act 2019, is the sole operator of Kiribati’s aviation infrastructure, managing two international airports and 19 domestic airstrips. As a critical enabler of connectivity and economic development for this small island developing State (SIDS), AKA faces systemic challenges that threaten its operational resilience and long-term sustainability. These include aging infrastructure, acute financial constraints and human resource management gaps, compounded by climate change and rising sea levels that pose existential risks to airport operations. Capital-intensive projects, such as fire truck acquisition, navigational aid upgrades and apron extensions, remain delayed due to reliance on government grants and donor funding. At the same time, fragmented workforce arrangements, hierarchical structures and misaligned compensation frameworks undermine efficiency and compliance with International Civil
Aviation Organization (ICAO) standards. This policy brief outlines a strategic reform agenda centred on four pillars: financial innovation, human resource modernization, integrated planning systems and climate-resilient infrastructure. Proposed measures include introducing new revenue streams,implementing performance-based human resource systems, adopting a dual-track planning framework and investing in coastal defences, drainage upgrades and renewable energy integration. By embracing these reforms, Kiribati can secure safe, reliable and sustainable air transport services, positioning AKA as a model for state-owned enterprise transformation in the Pacific region.

Authors: Masato Abe and Ben Namakin.