Tonga’s Lulutai Breaks Even, Eyes Investment from Sunair

Lulutai Airlines is now operating at break-even levels after years of losses, according to Tonga’s Deputy Prime Minister Taniela Fusimalohi, as reported by Kaniva Tonga. The government has ruled out further loans for the airline in the current budget, citing growing interest from private investors.

One such potential investor is New Zealand’s Sunair Aviation. Early-stage talks are reportedly underway between the two parties, with government support for the potential deal. Officials believe Sunair’s operational expertise could help improve Lulutai’s reliability and day-to-day performance. If finalized, it would mark the first instance of foreign investment in Lulutai Airlines.

Lulutai has struggled financially since its launch in 2020, relying on government loans and funding from a local pension scheme to maintain operations. Its challenges escalated in late 2023 when its insurer refused to cover damage to a Saab 340B aircraft. Earlier this year, the government initiated a review of the airline’s finances and operations in preparation for a possible sale.

The airline currently operates three aircraft: a DHC-6-300, a Harbin Y12, and a Saab 340B, the latter damp-leased from New Zealand-based Air Chathams. Lulutai serves domestic routes connecting Tongatapu with Eua, Ha’apai, and Vava’u.

The government remains committed to maintaining air connectivity across the island nation but is shifting focus toward private sector involvement to support Lulutai’s long-term sustainability. The ongoing talks with Sunair could mark a turning point for the Tongan carrier’s future.

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