The Lulutai Airlines dispute escalates as lawmakers contrast the former and current PMs’ management of the national carrier.
It follows the Eke government’s announcement that the domestic airline has been restored to full operations after its previous financial and operational troubles.
PM Eke opted against imposing additional taxpayer burdens, excluding both airline funding and further loans from the current budget
After ousting Huʻakavameiliku in December 2024, the Eke government quickly shifted to ending direct state control of the airline and limiting itself to regulatory functions. It has now put Lulutai shares up for sale, with foreign companies already bidding.
It was part of a review policy the Eke government announced during their campaign: they would review all government ministries and entities, with transparency at the core.
Under this policy, the government subsequently conducted weekly press briefings to disseminate critical information to the public via media channels, while permitting journalists to pose questions without restriction.
During his restructuring efforts, Piveni Piukala, Minister of Public Enterprises, likened the airline’s dire state and the government’s early restoration attempts to “a bandaged injury that still bleeds.”
The restoration was completed when the airline’s situation became so critical that only the new Twin Otter, the only operational aircraft in its three-plane fleet, was still in service. Meanwhile, just a year after its controversial purchase, it incurred hundreds of thousands of dollars in maintenance costs.
Piukala stated that before the airline’s restructuring, the former administration provided a $50 million capital injection into the government-sponsored organisation.
Prime Minister Eke recently announced the new development in the Parliament, describing it as thrilling (“fakafiefia”).
Controversial Past Management
Under Hu’akavameiliku’s government, millions were transferred from state coffers to fund the airline without proper parliamentary oversight.
His immediate appointment of his disgraced political ally Poasi Tei, dismissed from Parliament following an electoral bribery conviction, as CEO of Lulutai, shocked the public and stigmatised his administration’s management of the airline.
One of the most controversial decisions involved purchasing the new $14 million Twin Otter aircraft, partially financed by a $4.5 million loan from the Civil Servants’ Retirement Fund Board. Given the lack of transparency, this move drew significant public criticism, with critics saying the plane was too expensive for its actual price.
The Parliament only became aware of the purchase after Kaniva News reported on the Hu’akavameiliku’s plan to make the purchase.
Facing Opposition questions in Parliament, Huʻakavameiliku claimed the government funding for the Lulutai appeared in the Budget, but critics countered it wasn’t clearly itemised. Meanwhile, the airline’s ownership remained unverified, while Huʻakavameiliku said Treasury held the share certificate.
Auditor General Sefita Tangi confirmed to Kaniva News that, at the time, no such document existed in official records.
Budget Debate Reignites Controversy
As lawmakers debated the country’s budget 2025 / 2026, which was approved last week before the new fiscal year begins on July 1, the Lulutai Airlines controversy resurfaced, sparking a heated exchange between Huʻakavameiliku and Deputy Prime Minister Taniela Fusimālohi.
Huʻakavameiliku was questioning the Minister of Finance—who is also the Prime Minister—whether funds had been allocated in the budget for Lulutai Airlines. He further inquired if any loans were expected for the company, to which Eke replied, ‘No.’
Huʻakavameiliku appeared to be linking his management of Lulutai to the perceived success of Eke’s restructuring process. He claimed that the Eke camp did not believe the government should fund the Lulutai, but they were doing the same thing now.
He said in Tongan : “‘E ‘i ai e taimi na’a mou ta’etui ai ki he pa’anga ‘oku fiema’u ke fakalele’akí pea ko eni te tau toe sio pe he te tau toe a’u pe ki he me’a tatau pe, mālō Sea.”
In response, Fusimālohi highlighted the differences in how the governments of Hu’akavameiliku and Eke managed Lulutai Airlines, stressing the Eke restructuring to limit government involvement to a purely regulatory role.
Fusimālohi said in Tongan: “Sea ko e, ko e me’a kehe ia ‘oku talanoa ia ki ai ko e kuohilí ia. Ko e ‘ahó ni ko au ko e regulator au ‘o e airline ko ení.
“Kapau ne tō ki ha fakatu’utāmaki ko u ta’ofi.”
Investors Sought Worldwide
The Lulutai is inviting qualified investors to submit Expressions of Interest (EOI) to acquire shares in the company.
It said this opportunity is open to domestic and international investors with the financial capability, industry experience, and strategic vision to contribute to the airline’s long-term growth and success.
Reports indicated that New Zealand’s Sunair Aviation Ltd was among the potential buyers that submitted expressions of interest in purchasing Lulutai shares.
The deadline has been set for June 30.
