Lulutai Airlines is currently engaged in negotiations with its insurance provider following a December 2023 incident that left one of its aircraft out of service.
This was announced by Prime Minister Aisake Eke at a press conference last Friday, where he also presented the results of the latest Cabinet meeting decisions.
Eke confirmed that Lulutai Airlines is not yet a public enterprise but said plans are underway to transition it. The airline is still operating with a single DHC-6-400 Twin Otter aircraft, causing disruptions to domestic flights.
Meanwhile, the government is reviewing staffing and exploring solutions to fix ongoing issues with the country’s air services.
The Lulutai insurer has reportedly denied a payout for the damaged Saab 340B, claiming the aircraft is repairable and financial compensation depends on completing the repairs.
As negotiations over insurance premiums continue, the government says restoring reliable domestic air travel remains a top priority.
The incident took place at Fua’amotu Airport, where the plane lost control while taxiing and struck a cement block. A preliminary report highlighted multiple safety issues, including a hydraulic leak and the deliberate disabling of the flight recorder system.
Last year, King Tupou VI had criticized government’s handling of the airline’s affairs.
