The two chief executives (CEO) of the Real Tonga and Fly Niu airlines have agreed to work together if the government sell its Lulutai airline to Fly Niu.
They believed the combination of their more than 30 years experiences in the airlines industry would help provide a viable and stable airline service.
Real Tonga CEO Tevita Palu has previously announced his company was ready to take over the Lulutai services.
Fly Niu CEO ‘Atu Finau met with Real Tonga CEO in Tonga today.
Finau said the government’s Lulutai airlines would never recover and operate viably if Australia remove its $500,000 financial subsidy in June.
Finau believed the Lulutai airlines’ troubles were huge and could not be resolved in the short term.
The airlines’ 34 seat SAAB 340B aircraft is undergoing engine repairs and is expected to be grounded for three to four months.
Finau said the aircraft was old and its spare parts were expensive. It first flew with Mesaba Airlines in the United States in 1996.
Finau told Kaniva News he was in contact with Palu and agreed to work with him.
Palu previously told Kaniva News he was willing to help Finau in whatever way he could, such as he was currently doing to other airlines in Tonga including the Airline NZ, Qantas, Fiji Airways and Lulutai.
It appears that whichever company the government sells Lulutai to, the two CEOs will work together.
Prime Minister’s responses
The $500,000 donation by the Australian government has helped Tonga pay Fiji Airways to run a passenger service seven times a week between Tongatapu and Vava’u.
Following the Australian financial assistance critics questioned the validity of a report by the late Tu’ionetoa’s government saying that the airlines was operating at a profit.
As Kaniva News reported previously, the former Prime Minister said the government-owned Lulutai airline was making money, although he did not provide any figures to show the level of profit being generated.
The Prime Minister attributed the success of Lulutai to a new economic model he said was approved by his Cabinet.
Prime Minister Hu’akavameiliku did not answer questions in Parliament recently asking him whether the airlines was operated in loss.
“’Oku mou lele lelei lele tupu pē ‘oku lele mole”, the question by Tongatapu 5 MP Dr ‘Aisake Eke said.
Dr Eke also asked the Prime Minister to confirm whether the airline would be returned to the private sector or not.
In his response, Hu’akavameiliku said the government’s interest in the airline is only to make sure the flight service needs could be met.
He said: “When it is stable, we pull back and leave it to a “mixture of shareholders””.
The Prime Minister’s response has raised more questions:
- Does this mean the government has failed to serve the country with a stable flight service?
- Why did the Prime Minister refuse to say whether the airlines is operating at a loss or is in profit?
- Is this the right time for the government to return the airlines to the private sectors while Australia is still funding its Vava’u – Tongatapu services?
- What is the Prime Minister waiting for?
Fly Niu Airlines stopped operations in 2004 after the government of Tonga granted domestic monopoly rights to Peau Vavau, which itself collapsed in 2009. This was succeeded by Real Tonga Airlines in 2013, which was forced out by the government, which installed Lulutai airlines.
Both Air Niu and Real Tonga have made several attempts to re-start their services in Tonga.
For more information
Real Tonga boss urges government to let private sector take over air transport
Real Tonga boss says he wants to revive airline
