The announcement comes a day after the airline sent nearly 800 staff home with the economic fallout from the pandemic being blamed.
Prime Minister Frank Bainimarama said the situation at Fiji Airways was being mirrored across the world.
He said the aviation sector was on the brink of collapse due to Covid-19 and the government would do all it could to keep Fiji Airways afloat.
"It's so sad that we have to come to this but really Fiji Airways had no other option.