Tuvalu's permanent secretary for Communications Transport and Tourism says work is underway to establish the legal obligations over the now defunct Air Fiji.
Enele Sopoaga says the government, which was a key shareholder of Air Fiji, is disappointed at the airline's failure.
He says the government lost when Air Fiji shut down operations last April, citing financial problems and management issues.
He says the government has hired a lawyer in Fiji to represent them in an upcoming court hearing to settle legal matters arising from the winding up of the company.
"Tuvalu government as one of the major shareholders has also done its assessment and due diligence on Air Fiji and has finally decided it is not viable to propose for revival of operations at this stage and we are now dealing with the winding up and closure of the Air Fiji company."
Enele Sopoaga says compensation claims for workers is another matter that needs to be dealt with.