The Tongan government is raising concerns about the operations of Lulutai Airlines, citing financial struggles and a shortage of technical equipment.
Minister for Public Enterprises, Piveni Piukala, revealed on Friday that the airline has incurred over $21 million in expenses but has requested for a further $7 million pa’anga.
Lulutai has requested the $7 million pa’anga bailout for revitalization, but the government has yet to approve the funding. Piukala said that the cabinet has agreed to register Lulutai as a public enterprise. A parliamentary audit report, which Piukala referenced, highlighted the airline’s financial challenges, including its $21 million expenditure.
Piukala also disclosed that he was unaware until recently that the National Retirement Fund Board had given $10 million to Lulutai—$4 million through shares and $6 million as a loan. He raised concerns with the board of the retirement fund about the investment’s security.
Prime Minister Eke said that the airline has been operating at a loss, with its sole 19-seat Twin Otter aircraft still in service. The government is committed to keeping Lulutai running to maintain essential services to outer islands.
An audit of the airline’s operations is underway, and the government is currently evaluating the situation and determining the best way forward.
