The government has dismissed Lulutai Airlines’ CEO, Poasi Tei, appointing Real Tonga Airlines’ director, Tevita Palu, as interim chief executive. Minister for Public Enterprises, Hon. Paula Piukala, confirmed the leadership change during a press conference yesterday.

Prime Minister Dr. ‘Aisake Eke said Tei’s removal was due to significant technical challenges facing Lulutai Airlines. He added that Palu’s experience with Real Tonga Airlines makes him well-suited to address these issues.

Piukala told reporters at the press conference the airline’s Y12 aircraft has been out of service since 2023, leaving only the Twin Otter operational. He noted that previous governments had invested approximately $21 million into Lulutai, including a $10 million loan from the Retirement Fund Board—$6 million of which was spent on a new Twin Otter, and $4 million allocated for share purchases.

The Prime Minister mentioned that the government is reviewing the airline to assess its financial viability and operational capabilities, including evaluating staff qualifications. Lulutai Airlines, established in 2020, has faced criticism over service quality and customer communication. If liquidated, it would become the 14th airline to cease operations in Tonga.

Palu previously said that Real Tonga had been put out of operation by COVID-19 and local politics. He stressed the need for a safe and reliable air service with the reopening of borders and expressed readiness to provide aircraft from New Zealand, pending government approval.

The government expects Palu to conduct a comprehensive review and provide a report on Lulutai Airlines’ current technical and mechanical status, as well as a forecast of its future performance.

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