Tonga to Restructure Lulutai Airlines as Public Enterprise for Greater Transparency

Tongan Prime Minister Siaosi ‘Ofakivahafolau Sovaleni (also known as Hu’akavameiliku) announced that Lulutai Airlines (L8, Tongatapu) will transition into a public enterprise, emphasizing a commitment to transparency. During a press conference on November 8 in Nukuʻalofa, the Prime Minister, who also chairs the airline, highlighted the government’s intent to address concerns about Lulutai’s governance.

The state-owned Lulutai Airlines has previously faced scrutiny, with critics, including King Tupou VI, questioning its financial transparency. Attempts to partially privatize the airline while maintaining government control have so far been unsuccessful.

“Cabinet decided that Lulutai will be a public enterprise to prove there is nothing to hide,” said the Prime Minister, as reported by Matangi Tonga.

Currently, Lulutai Airlines operates one DHC-6-400 and one wet-leased Saab 340B from Air Chathams on routes connecting Tongatapu, Eua, Ha’apai, and Vava’u. A second Saab 340B(Plus) remains grounded following a runway incident in December 2023.

As a public enterprise, Lulutai Airlines will come under the Ministry of Public Enterprises’ oversight, aligning with the ministry’s objectives to ensure efficiency and profitability comparable to private-sector businesses. This restructuring also mandates the airline to submit annual reports, supporting enhanced accountability and operational transparency.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com