Royal Tongan Airlines
Encyclopedia
Royal Tongan Airlines was the national airline
of Tonga
until liquidation in 2004. It was a government agency and operated interisland services and international routes.
to investigate the setting up of a Tongan airline. It was planned for Friendly Island Airways to begin operations in October 1974, with technical and managerial assistance provided by the Japanese airline, and for the airline to operate a surplus ANA Boeing 737-200. The plan was dropped in favour of Tongan participation in Air Nauru
, which was expected to take delivery of a third Fokker F28
and was also expected to extend the Nauru
-Apia route to Tonga. At the time, flights between Apia and Tonga were operated exclusively by Polynesian Airlines
.
In 1985, King of Tonga Taufa'ahau Tupou IV
visited the British Aerospace
factory in Woodford
, leading to hopes with the manufacturer that Tonga would purchase the British Aerospace ATP. However, the government of Tonga and the Tonga Commodities Board purchased a CASA 212 and Britten Norman Islander with which domestic flights could be started. Flights to Pago Pago (American Samoa
) and Apia (Western Samoa) were begun with the CASA in 1986. As airfields in Vavaʻu, Haʻapai, [[ʻEua]] and the Niuas
were upgraded, the airline upgraded the inter-island aircraft. In 1989 the airline leased two de Havilland Canada DHC-6 Twin Otter
s to replace the CASA and Islander, and after the initial lease period, purchased the aircraft the lessor, Guiness Peat Aviation. In June 1991, the name was changed from Friendly Island Airways to Royal Tongan Airlines, and international services were begun with a Boeing 737-200 which was leased from Solomon Airlines
from Tongatapu
to Auckland
, New Zealand
. The airline was considering acquiring a Douglas DC-8
in order to operate flights to Australia
, New Zealand
and Honolulu, however this didn't eventuate and in 1994 the airline entered into a codeshare agreement with Polynesian Airlines
on routes to Sydney
, Honolulu and Los Angeles
.
In June 1995, an agreement was signed with Air Pacific
, which saw the lease-sharing of a Boeing 737-300 operated on Royal Tongan routes. The airline also gained approval from the Australian government to carry passengers on its Sydney-Auckland-Tonga route. In 1996 the airline opened an office in Honolulu, and began codesharing on Air New Zealand
flights from Tongatapu to the Hawaii
an capital. On 28 October 1997, a codeshare agreement with Polynesian Airlines
was begun. The agreement signed in early October 1997, saw Polynesian Airlines extending its Apia-Wellington-Melbourne
flights to operate Apia-Tonga-Wellington-Melbourne. The agreement was a continuation of efforts by airlines in the South Pacific
to pool their limited resources to maximise their services.
Direct flights between Tongatapu
and Sydney
were announced in April 1999 as part of a Tongan initiative to increase tourist numbers from Australia. The once-weekly flights, the first by a Tongan airline to Australia, were operated by a chartered Air Pacific
Boeing 737.
travelled to Tonga to try and persuade Royal Tongan to continue flying to Niue
from Tonga past 28 October 2002; that date on which the flights were to cease, and Polynesian Airlines
would begin jet service to Auckland
. Royal Tongan told the Niuean government that it could no longer justify the service.
In 2002, the airline leased a Boeing 757
from Royal Brunei Airlines in order to restart international flights. The deal saw the aircraft being leased for a period of five years, initially as a wet lease later to be changed to a dry lease. Prince Tuʻipelehake, and a majority of Tongan MPs, opposed the government giving Royal Tongan financial support with public funds due to the high levels of debt the airline was already in.
Royal Tongan service of the 757, nicknamed Ikale Tahi, was inaugurated at Fuaʻamotu International Airport on 23 November 2002, with thrice-weekly flights from Tongatapu
to Auckland
, with a once-a-week extension to Sydney
.
In 2003 it obtained its own air operator's certificate
with a view to launching flights to Honolulu. On 19 December, the airline was due to launch a once-weekly direct flight from Tongatapu to Honolulu, marking the entry of the airline in the American
market.
The Director of the Tongan Human Rights and Democracy Movement
claimed the restructuring of the airline suffered from a lack of transparency. Lopeti Senituli noted that Tongan Prime Minister
Prince [[ʻUlukālala Lavaka Ata]] wrote to the board of Royal Tongan Airline and instructed them to resign. At the same time, he noted that Shoreline, a company owned by the prince, had expressed an interest in taking over the airline.
The airline commissioned KPMG
to review the airline's financial position, and in November 2003 the report by the accounting firm concluded that the airline was nearly insolvent
and that too few passengers were flying on the airline's international routes. The review found that Royal Tongan had lost US$5.5 million in the first nine months of its international operations. It was also determined that whilst Royal Tongan expected a 65% load factor on these flights, the actual figure was closer to 34%. In dismissing KPMG's review, CEO Logan Appu, stated that the airline would continue to operate internationally, and confirmed that the airline would begin flights to Honolulu in December 2003, in spite of the report recommending that Royal Tongan ditch the international flights and concentrate only on domestic services. People's Representative Feleti Sevele
noted that report suggested that the government would need to inject US$10 million into the airline, whilst the entire Tongan budget is only US$50 million.
The introduction of flights by Royal Tongan to Rarotonga
sparked a price war with Air New Zealand
. Five night packages to Rarotonga before Royal Tongan entered the scene cost approximately NZ$1299, and after the airline entrered the market prices dropped to NZ$829–$899 for seven night packages.
for Auckland
the following day, whereby the Boeing 757
was repossessed for non-payment and returned to Royal Brunei Airlines. Whilst airline management provided no reasons for the cessation of international flights, it was believed to be linked to the funding crisis which was being experienced by the state-owned airline. After the closure, Tonga was reliant on Air New Zealand
, Air Pacific
, Air Fiji
and Polynesian Airlines
for international air services. The cessation of international flights also had the side effect of stranding mail being sent to Tonga in Auckland, up to a month afterwards, due to limited cargo space being available on the Air New Zealand
flights to the nation, and in late May it was reported that the nation had not received mail for a week.
Akilisi Pohiva, a pro-democracy member ofTonga's parliament blamed King Taufa'ahau Tupou IV for the financial crisis of the airline, and called on the king to use his own funds to bail Royal Tongan out of its financial woes. He noted that the Tupou had issued a royal decree for the 757 project to proceed, despite opposition from the cabinet and parliament, and claimed that the monarchy is not accountable to the public.
On 18 May 2004, the airline ceased all operations with the remaining one hundred employees losing their jobs, and the islands of Tonga being left without domestic air service. The closure was forced as the airline's only airworthy aircraft, the Shorts 360
, broke down and the airline had no funds with which to repair it. Airline administration was hoping that the government would bail it out, but this did not eventuate.
In discussing the sending of Australia
n and New Zealand
specialists to Tonga, to help the government wind up the airline, Phil Goff
, the New Zealand Minister of Foreign Affairs
stated "lessons can be learned from how and why the RTA collapsed." The Tongan government confirmed that it had a financial commitment in the airline to the value of 14 million Tongan paʻanga, and had pumped some 20 million paʻanga into the airline since its inception in 1985.
In July 2004 PricewaterhouseCoopers
found that the only substantial remaining assets of the company was a hangar and the two aircraft. It recommended that the aircraft be repaired and sold. By December 2004, it was reported that creditors had lodged claims of US$8.5 million from the liquidators, but had recovered only US$1.13 million from the sale of assets. PricewaterCoopers also noted that only 106 of 206 former employees of the airline had thus far lodged claims. The Twin Otter was sold in January 2005 for US$850,000, and the sale of assets from the airline's offices in Nukuʻalofa
and abroad netted US$71,000 and US$8,000 respectively.
In the absence of domestic flights in Tonga, by June 2004 Air Waves of Vava'u and Fly Niu Airlines
had begun operations on some of the former Royal Tongan routes.
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
of Tonga
Tonga
Tonga, officially the Kingdom of Tonga , is a state and an archipelago in the South Pacific Ocean, comprising 176 islands scattered over of ocean in the South Pacific...
until liquidation in 2004. It was a government agency and operated interisland services and international routes.
Formative years
In 1983 a feasibility study was undertaken by All Nippon AirwaysAll Nippon Airways
, also known as or ANA, is one of the largest airlines in Japan. It is headquartered at the Shiodome City Center in the Shiodome area in Minato, Tokyo, Japan. It operates services to 49 destinations in Japan and 35 international routes and employed over 14,000 employees as of May 2009...
to investigate the setting up of a Tongan airline. It was planned for Friendly Island Airways to begin operations in October 1974, with technical and managerial assistance provided by the Japanese airline, and for the airline to operate a surplus ANA Boeing 737-200. The plan was dropped in favour of Tongan participation in Air Nauru
Air Nauru
Our Airline is the national airline of the Republic of Nauru. It operates scheduled international services to other Pacific islands and Australia. Its main base is Nauru International Airport...
, which was expected to take delivery of a third Fokker F28
Fokker F28
The Fokker F28 Fellowship is a short range jet airliner designed and built by defunct Dutch aircraft manufacturer Fokker.-Design and development:...
and was also expected to extend the Nauru
Nauru
Nauru , officially the Republic of Nauru and formerly known as Pleasant Island, is an island country in Micronesia in the South Pacific. Its nearest neighbour is Banaba Island in Kiribati, to the east. Nauru is the world's smallest republic, covering just...
-Apia route to Tonga. At the time, flights between Apia and Tonga were operated exclusively by Polynesian Airlines
Polynesian Airlines
Polynesian Airlines is the national airline of Samoa and has its headquarters in the Samoa National Provident Fund Building in the capital, Apia. It formerly flew all over the Pacific but with the establishment of Polynesian Blue by the government and Virgin Blue , Polynesian Airlines has...
.
In 1985, King of Tonga Taufa'ahau Tupou IV
Taufa'ahau Tupou IV
Tāufaāhau Tupou IV, King of Tonga, GCMG, GCVO, KBE, KStJ son of Queen Sālote Tupou III and her consort Prince Viliami Tungī Mailefihi, was the king of Tonga from the death of his mother in 1965 until his own death in 2006...
visited the British Aerospace
British Aerospace
British Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...
factory in Woodford
Woodford, Greater Manchester
Woodford is a suburban village at the southern extent of the Metropolitan Borough of Stockport, in Greater Manchester, England. It lies south of Stockport, north-northwest of Macclesfield, and south-southeast of Manchester...
, leading to hopes with the manufacturer that Tonga would purchase the British Aerospace ATP. However, the government of Tonga and the Tonga Commodities Board purchased a CASA 212 and Britten Norman Islander with which domestic flights could be started. Flights to Pago Pago (American Samoa
American Samoa
American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa...
) and Apia (Western Samoa) were begun with the CASA in 1986. As airfields in Vavaʻu, Haʻapai, [[ʻEua]] and the Niuas
Niuas
Niuas is a division of Tonga. It consists of three islands:*Niuafoʻou*Niuatoputapu*Tafahi...
were upgraded, the airline upgraded the inter-island aircraft. In 1989 the airline leased two de Havilland Canada DHC-6 Twin Otter
De Havilland Canada DHC-6 Twin Otter
The DHC-6 Twin Otter is a Canadian 19-passenger STOL utility aircraft developed by de Havilland Canada and currently produced by Viking Air. The aircraft's fixed tricycle undercarriage, STOL abilities and high rate of climb have made it a successful cargo, regional passenger airliner and MEDEVAC...
s to replace the CASA and Islander, and after the initial lease period, purchased the aircraft the lessor, Guiness Peat Aviation. In June 1991, the name was changed from Friendly Island Airways to Royal Tongan Airlines, and international services were begun with a Boeing 737-200 which was leased from Solomon Airlines
Solomon Airlines
Solomon Airlines is the national airline of the Solomon Islands, based in Honiara.- History :Solomon Airlines was established in 1962 as a charter airline by Laurie Crowley. Crowley had been flying around Papua New Guinea when he started to fly charter flights on a single Piper Aztec plane to the...
from Tongatapu
Tongatapu
Tongatapu is the main island of the Kingdom of Tonga and the location of its capital Nukualofa. It is located in Tonga's southern island group, to which it gives its name, and is the country's most populous island, with approximately 71,260 residents , 70.5% of the national population...
to Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. The airline was considering acquiring a Douglas DC-8
Douglas DC-8
The Douglas DC-8 is a four-engined narrow-body passenger commercial jet airliner, manufactured from 1958 to 1972 by the Douglas Aircraft Company...
in order to operate flights to Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
and Honolulu, however this didn't eventuate and in 1994 the airline entered into a codeshare agreement with Polynesian Airlines
Polynesian Airlines
Polynesian Airlines is the national airline of Samoa and has its headquarters in the Samoa National Provident Fund Building in the capital, Apia. It formerly flew all over the Pacific but with the establishment of Polynesian Blue by the government and Virgin Blue , Polynesian Airlines has...
on routes to Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Honolulu and Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
.
In June 1995, an agreement was signed with Air Pacific
Air Pacific
Air Pacific Limited, Fiji's international airline, operates international and domestic services around the Pacific and to North America and Hong Kong. It is also a partner with the frequent flyer programmes of Qantas, American Airlines, and Alaska Airlines...
, which saw the lease-sharing of a Boeing 737-300 operated on Royal Tongan routes. The airline also gained approval from the Australian government to carry passengers on its Sydney-Auckland-Tonga route. In 1996 the airline opened an office in Honolulu, and began codesharing on Air New Zealand
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
flights from Tongatapu to the Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
an capital. On 28 October 1997, a codeshare agreement with Polynesian Airlines
Polynesian Airlines
Polynesian Airlines is the national airline of Samoa and has its headquarters in the Samoa National Provident Fund Building in the capital, Apia. It formerly flew all over the Pacific but with the establishment of Polynesian Blue by the government and Virgin Blue , Polynesian Airlines has...
was begun. The agreement signed in early October 1997, saw Polynesian Airlines extending its Apia-Wellington-Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
flights to operate Apia-Tonga-Wellington-Melbourne. The agreement was a continuation of efforts by airlines in the South Pacific
Oceania
Oceania is a region centered on the islands of the tropical Pacific Ocean. Conceptions of what constitutes Oceania range from the coral atolls and volcanic islands of the South Pacific to the entire insular region between Asia and the Americas, including Australasia and the Malay Archipelago...
to pool their limited resources to maximise their services.
Direct flights between Tongatapu
Tongatapu
Tongatapu is the main island of the Kingdom of Tonga and the location of its capital Nukualofa. It is located in Tonga's southern island group, to which it gives its name, and is the country's most populous island, with approximately 71,260 residents , 70.5% of the national population...
and Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
were announced in April 1999 as part of a Tongan initiative to increase tourist numbers from Australia. The once-weekly flights, the first by a Tongan airline to Australia, were operated by a chartered Air Pacific
Air Pacific
Air Pacific Limited, Fiji's international airline, operates international and domestic services around the Pacific and to North America and Hong Kong. It is also a partner with the frequent flyer programmes of Qantas, American Airlines, and Alaska Airlines...
Boeing 737.
International expansion
A delegation from the government of NiuePolitics of Niue
Politics of Niue takes place in a framework of a parliamentary representative democratic dependency, whereby the Chief Minister is the head of government, and of a multi-party system. Niue is self-governing in free association with New Zealand and is fully responsible for internal affairs. New...
travelled to Tonga to try and persuade Royal Tongan to continue flying to Niue
Niue
Niue , is an island country in the South Pacific Ocean. It is commonly known as the "Rock of Polynesia", and inhabitants of the island call it "the Rock" for short. Niue is northeast of New Zealand in a triangle between Tonga to the southwest, the Samoas to the northwest, and the Cook Islands to...
from Tonga past 28 October 2002; that date on which the flights were to cease, and Polynesian Airlines
Polynesian Airlines
Polynesian Airlines is the national airline of Samoa and has its headquarters in the Samoa National Provident Fund Building in the capital, Apia. It formerly flew all over the Pacific but with the establishment of Polynesian Blue by the government and Virgin Blue , Polynesian Airlines has...
would begin jet service to Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
. Royal Tongan told the Niuean government that it could no longer justify the service.
In 2002, the airline leased a Boeing 757
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...
from Royal Brunei Airlines in order to restart international flights. The deal saw the aircraft being leased for a period of five years, initially as a wet lease later to be changed to a dry lease. Prince Tuʻipelehake, and a majority of Tongan MPs, opposed the government giving Royal Tongan financial support with public funds due to the high levels of debt the airline was already in.
Royal Tongan service of the 757, nicknamed Ikale Tahi, was inaugurated at Fuaʻamotu International Airport on 23 November 2002, with thrice-weekly flights from Tongatapu
Tongatapu
Tongatapu is the main island of the Kingdom of Tonga and the location of its capital Nukualofa. It is located in Tonga's southern island group, to which it gives its name, and is the country's most populous island, with approximately 71,260 residents , 70.5% of the national population...
to Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
, with a once-a-week extension to Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
.
In 2003 it obtained its own air operator's certificate
Air Operator's Certificate
An air operator's certificate is the approval granted from a national aviation authority to an aircraft operator to allow it to use aircraft for commercial purposes. This requires the operator to have personnel, assets and system in place to ensure the safety of its employees and the general public...
with a view to launching flights to Honolulu. On 19 December, the airline was due to launch a once-weekly direct flight from Tongatapu to Honolulu, marking the entry of the airline in the American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
market.
The Director of the Tongan Human Rights and Democracy Movement
Human Rights and Democracy Movement
The Human Rights and Democracy Movement is a political party in Tonga. Its leader is Uliti Uata.The HRDM was founded in the late 1970s as an informal group of Tongans interested in democratic reform. It was formalised in 1992 as the Pro-Democracy Movement, and contested several elections under...
claimed the restructuring of the airline suffered from a lack of transparency. Lopeti Senituli noted that Tongan Prime Minister
Prime Minister of Tonga
This is a list of Prime Ministers of Tonga from the establishment of that office in 1876 until the present day.-List of Premiers/Prime Ministers of Tonga :-External links:*...
Prince [[ʻUlukālala Lavaka Ata]] wrote to the board of Royal Tongan Airline and instructed them to resign. At the same time, he noted that Shoreline, a company owned by the prince, had expressed an interest in taking over the airline.
The airline commissioned KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
to review the airline's financial position, and in November 2003 the report by the accounting firm concluded that the airline was nearly insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
and that too few passengers were flying on the airline's international routes. The review found that Royal Tongan had lost US$5.5 million in the first nine months of its international operations. It was also determined that whilst Royal Tongan expected a 65% load factor on these flights, the actual figure was closer to 34%. In dismissing KPMG's review, CEO Logan Appu, stated that the airline would continue to operate internationally, and confirmed that the airline would begin flights to Honolulu in December 2003, in spite of the report recommending that Royal Tongan ditch the international flights and concentrate only on domestic services. People's Representative Feleti Sevele
Feleti Sevele
Feleti Vakaʻuta Sevele , styled Lord Sevele of Vailahi was the Prime Minister of the Kingdom of Tonga from 30 March 2006 to 22 December 2010.-Early life:Sevele was born in Ma’ufanga, Nuku’alofa...
noted that report suggested that the government would need to inject US$10 million into the airline, whilst the entire Tongan budget is only US$50 million.
The introduction of flights by Royal Tongan to Rarotonga
Rarotonga
Rarotonga is the most populous island of the Cook Islands, with a population of 14,153 , out of the country's total population of 19,569.The Cook Islands' Parliament buildings and international airport are on Rarotonga...
sparked a price war with Air New Zealand
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
. Five night packages to Rarotonga before Royal Tongan entered the scene cost approximately NZ$1299, and after the airline entrered the market prices dropped to NZ$829–$899 for seven night packages.
Towards liquidation
The airline stopped selling international flights on 23 April 2004, and announced that the last international flight would leave TongatapuTongatapu
Tongatapu is the main island of the Kingdom of Tonga and the location of its capital Nukualofa. It is located in Tonga's southern island group, to which it gives its name, and is the country's most populous island, with approximately 71,260 residents , 70.5% of the national population...
for Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
the following day, whereby the Boeing 757
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...
was repossessed for non-payment and returned to Royal Brunei Airlines. Whilst airline management provided no reasons for the cessation of international flights, it was believed to be linked to the funding crisis which was being experienced by the state-owned airline. After the closure, Tonga was reliant on Air New Zealand
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
, Air Pacific
Air Pacific
Air Pacific Limited, Fiji's international airline, operates international and domestic services around the Pacific and to North America and Hong Kong. It is also a partner with the frequent flyer programmes of Qantas, American Airlines, and Alaska Airlines...
, Air Fiji
Air Fiji
Air Fiji was an airline based in Nausori, Fiji. It operated inter-island services to destinations within the Fijian Islands. Its main base was Nausori International Airport, Suva, with a base at Nadi International Airport....
and Polynesian Airlines
Polynesian Airlines
Polynesian Airlines is the national airline of Samoa and has its headquarters in the Samoa National Provident Fund Building in the capital, Apia. It formerly flew all over the Pacific but with the establishment of Polynesian Blue by the government and Virgin Blue , Polynesian Airlines has...
for international air services. The cessation of international flights also had the side effect of stranding mail being sent to Tonga in Auckland, up to a month afterwards, due to limited cargo space being available on the Air New Zealand
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
flights to the nation, and in late May it was reported that the nation had not received mail for a week.
Akilisi Pohiva, a pro-democracy member ofTonga's parliament blamed King Taufa'ahau Tupou IV for the financial crisis of the airline, and called on the king to use his own funds to bail Royal Tongan out of its financial woes. He noted that the Tupou had issued a royal decree for the 757 project to proceed, despite opposition from the cabinet and parliament, and claimed that the monarchy is not accountable to the public.
On 18 May 2004, the airline ceased all operations with the remaining one hundred employees losing their jobs, and the islands of Tonga being left without domestic air service. The closure was forced as the airline's only airworthy aircraft, the Shorts 360
Shorts 360
The Short 360 is a commuter aircraft built by Short Brothers. The Short 360 seats up to 36-39 passengers and was introduced into service in 1981. It is a larger version of the Short 330.-Development:...
, broke down and the airline had no funds with which to repair it. Airline administration was hoping that the government would bail it out, but this did not eventuate.
In discussing the sending of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
specialists to Tonga, to help the government wind up the airline, Phil Goff
Phil Goff
Philip Bruce Goff is the current Leader of the Opposition and the Leader of the New Zealand Labour Party. During the Fifth Labour Government, he served in a number of ministerial portfolios, including Minister of Defence of New Zealand, Minister of Corrections, Minister of Foreign Affairs and...
, the New Zealand Minister of Foreign Affairs
Minister of Foreign Affairs (New Zealand)
The Minister of Foreign Affairs is a major ministerial portfolio in the government of New Zealand.The current Minister of Foreign Affairs is Murray McCully, who was National Party Spokeperson of Foreign Affairs and Shadow Minister of Foreign Affairs. There are also Associate Minister roles...
stated "lessons can be learned from how and why the RTA collapsed." The Tongan government confirmed that it had a financial commitment in the airline to the value of 14 million Tongan paʻanga, and had pumped some 20 million paʻanga into the airline since its inception in 1985.
In July 2004 PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
found that the only substantial remaining assets of the company was a hangar and the two aircraft. It recommended that the aircraft be repaired and sold. By December 2004, it was reported that creditors had lodged claims of US$8.5 million from the liquidators, but had recovered only US$1.13 million from the sale of assets. PricewaterCoopers also noted that only 106 of 206 former employees of the airline had thus far lodged claims. The Twin Otter was sold in January 2005 for US$850,000, and the sale of assets from the airline's offices in Nukuʻalofa
Nukuʻalofa
Nukualofa is the capital of the Kingdom of Tonga. It is located on the north coast of the island of Tongatapu, in the southern most island group of Tonga.-Mythological origins:...
and abroad netted US$71,000 and US$8,000 respectively.
In the absence of domestic flights in Tonga, by June 2004 Air Waves of Vava'u and Fly Niu Airlines
Fly Niu Airlines
Fly Niu Airlines was an airline based in Tonga. It ceased operations in 2004.-History:The airline was established and started operations in June 2004. It was forced to cease operations on 10 September 2004 after its air operators certificate was revoked because of Tonga's "one airline" policy,...
had begun operations on some of the former Royal Tongan routes.
External links
- former Royal Tongan website accessed 18 July 2005 - maintained to retain historical information.