The government has announced serious investor bids to take over troubled Lulutai Airlines.
Prime Minister ʻAisake Eke confirmed that two companies are interested in acquiring state-run Lulutai Airlines as the government pushes forward with its plan to privatise the financially strained carrier.
Among the bidders is Fly Niu Airlines, a dormant airline that briefly operated in 2004, which has proposed to provide Lulutai with an aircraft under a wet-lease, management services, and a share acquisition. Another prospective suitor is Sunair Aviation from New Zealand, currently in early-stage talks about investing in Lulutai.
Former Prime Minister Siaosi Sovaleni stated the airline, though in financial trouble, has enough assets to meet its obligations, noting it has repaid $800,000 of a $6 million loan from the Retirement Fund Board, leaving about TOP 5.7 million outstanding including interest.
Safety and operational reliability have also been concerns. The Civil Aviation Division suspended Lulutai’s maintenance certificate in July 2025 because of non-compliance with maintenance rules, grounding its in-house aircraft, though flights via leased planes continued.
The government has ruled out new loans in the latest budget and hopes a private investor will help stabilize Lulutai’s finances.
Lulutai Airlines currently operates one DHC-6-400 and one Y12, and has an inactive Saab 340B(Plus). It is also damp-leasing a Saab 340B from Air Chathams.
