Tonga’s Lulutai Airlines Can Repay Debt, Says Former Chairman
Former Tongan Prime Minister and ex-chairman of Lulutai Airlines, Hu’akavameiliku Siaosi Sovaleni, has stated that the state-owned airline is financially capable of repaying its TOP6 million (USD2.5 million) debt. He assured that Lulutai has “sufficient assets to cover its debt.”
Lulutai Airlines, which operates domestic flights across Tonga, recently requested a TOP7 million (USD2.9 million) capital injection to sustain its services. However, caretaker Prime Minister ʻAisake Eke and Public Enterprises Minister Piveni Piukala opposed the request, even suggesting the airline could be shut down.
Sovaleni, who chaired Lulutai while serving as Prime Minister, resigned in December following a no-confidence motion. His tenure faced criticism for allegedly allowing lax financial oversight. Last year, King Tupou VI also raised concerns about the airline’s transparency.
Sovaleni clarified that Lulutai’s only debt is a TOP6 million loan from the State Retirement Fund, which owns 27.19% of the airline, with TOP800,000 (USD335,250) already repaid. He emphasized that the recent funding request was for a loan, not a bailout. Since its inception, Lulutai has received TOP15 million (USD6.23 million) in government funding.
Recently, Eke’s administration dismissed Lulutai CEO Poasi Tei, a Sovaleni ally, appointing former Real Tonga Airlines CEO Tevita Palu as interim chief. Eke has also taken Sovaleni’s place on Lulutai’s board while reviewing the airline’s future operations.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com