Prime Minister Hu’akavameiliku announced that Lulutai Airlines will soon operate as a public enterprise, emphasizing the government’s commitment to transparency.
“The Cabinet then decided that Lulutai will be a public enterprise to prove there is nothing to hide,” he said last week, addressing criticisms of the airline’s financial management.
Lulutai Airlines, state-owned, has faced scrutiny for allegedly operating like a private entity.
King Tupou VI criticized the lack of transparency surrounding its finances in a May address, prompting the government’s failed attempt to sell a partial stake while retaining control.
Lulutai’s fleet includes a DHC-6-400 Twin Otter and a wet-leased Saab 340B from Air Chathams, serving routes to Eua, Ha’apai, and Vava’u.
A Saab 340B remains grounded after a runway accident last December.
Under public enterprise status, Lulutai will report to Ministry of Public Enterprises, which oversees performance and annual reporting, aiming for profitability and accountability in state-run businesses.