The Eke government has reportedly fired the Lulutai Airlines chief executive officer, a reliable source told Kaniva News.
It is understood that the Prime Minister is expected to make an official announcement this afternoon.
Kaniva News contacted the Prime Minister for comment.
Tei was appointed by former Prime Minister Hu’akavameiliku after Parliament dismissed the chief executive officer due to his court conviction for electoral bribery.
The news comes after the Minister for Public Enterprises, Piveni Piukala, said Lulutai Airlines service was taking a nosedive (“meleuku”) and its operation was “very cloudy”.
Piukala said the airline’s management has asked for $7 million to revive the company.
“In a scenario where there is no $7 million, the company must be wound up,” Mr Piukala said during a media briefing last week.
Piukala said that the biggest challenge they faced while reviewing Lulutai was that the previous governments had invested approximately $21 million in it.
He said he had just learned of a $10 million loan the airlines secured from the Retirement Fund Board.
He stated that out of the $10 million, $6 million was spent on the new Twin Otter, while $4 million was allocated for share purchases.
The Prime Minister said the government was reviewing the airlines to assess its financial viability.
PM Eke wanted to understand Lulutai’s operational capabilities, including assessing the staff to determine whether they possess the necessary qualifications.
The news follows revelations about civil servants’ concerns regarding their retirement funds and whether Lulutai Airlines could repay its loans.
Lulutai Airlines has been controversial since its inception in 2020 by the Tu’i’onetoa government, in which most of the outgoing Cabinet Ministers were members.
Experts, including assessors from the IMF, said that airlines in the Pacific Islands are generally not profitable ventures, except for Fijian airlines, in which Qantas holds a 46 percent share.
Lulutai has been accused of providing poor service, failing to communicate effectively with customers, and not offering an online service for passengers.
If Lulutai were to be liquidated, it would become the 14th airline to be shut down in the kingdom.
