Tongan Prime Minister Siaosi ‘Ofakivahafolau Sovaleni (aka Hu’akavameiliku) says Lulutai Airlines (L8, Tongatapu) will become a public enterprise because the government has “nothing to hide.” He made the announcement during a November 8 news conference in Nukuʻalofa.
The Tongan government has previously come under fire over its governance of Lulutai, which is wholly-owned by the state but accused of a lack of transparency and operating like a private company. In a speech in May, Tonga’s King Tupou VI criticised the secrecy surrounding Lulutai’s finances and decision-making. Since then, the government has unsuccessfully attempted to sell a stake in Lulutai while retaining control of it.
“The Cabinet then decided that Lulutai will be a public enterprise to prove there is nothing to hide,” the Matangi Tonga news site reported Hu’akavameiliku as saying last week. Aside from his day job, the PM is also chairman of Lulutai Airlines.
The ch-aviation PRO airlines module shows Lulutai deploys one DHC-6-400 plus one wet-leased (from Air Chathams) Saab 340B on scheduled services between Tongatapu, Eua, Ha’apai, and Vava’u. A third aircraft, a Saab 340B(Plus), remains AOG after a runway excursion in December 2023.
As one of Tonga’s public enterprises, Lulutai Airlines will fall under the supervision and control of the Ministry of Public Enterprises. Among other things, the ministry attempts to ensure public enterprises operate as successful businesses and are as profitable and efficient as comparable non-state-owned businesses. They are also required to compile and submit annual reports.