Nuku’alofa, Tonga—The Eke government has announced it will not purchase the ATR 72 aircraft, marking a clear shift away from direct state involvement in the financially troubled Lulutai Airlines.
It follows the government’s announcement that the national airline’s three small aircraft fleet is fully functional and breaking even as part of their promised review since taking power from the former Hu’akavameiliku government in December.
The revelation comes as the deadline to bid for Lulutai Airlines shares is just one week away, with submissions closing next Monday
The government has issued an open call for Expressions of Interest (EOI) from potential buyers, emphasising financial stability, aviation expertise, and alignment with Tonga’s national interests.
Prospective buyers must meet stringent requirements to qualify for the acquisition of Lulutai Airlines. These include demonstrating financial strength by submitting audited financial statements as proof of stability, as well as having relevant industry experience in aviation operations, aircraft maintenance, or tourism and logistics.
Additionally, investors must show a commitment to safety and operational efficiency, with a proven track record of improving airline performance. Finally, bids will be evaluated based on strategic value, ensuring alignment with Tonga’s long-term economic and transportation objectives.
The government has emphasised that only serious investors with the capacity to sustain and grow the airline will be considered.
Fleet Expansion Abandoned
The purchase price for a new ATR 72-600 aircraft is typically around US$26 million (TOP$63 million).
However, the purchase faced heavy scrutiny after the Parliament was not officially informed about the 2023 Twin Otter acquisition, which only came to light through a Kaniva News report.
Prime Minister Eke’s administration has now halted the ATR 72 deal entirely, opting instead to restructure Lulutai Airlines and seek private investment.
Deputy Prime Minister Taniela Fusimalohi confirmed the cancellation after former PM Huʻakavameiliku pressed him on whether the budget included funding for Lulutai.
“No,” Fusimalohi responded, before announcing the government’s decision to abandon the ATR-72 acquisition. In Tongan, he said: “‘… ko e tu’u ia ki he kaha’ú, ia ‘ikai ke ‘i ai ha ATR 72.”
The Deputy Prime Minister did not elaborate on why he mentioned the cancellation of the ATR-72 purchase when responding to Hu’akavameiliku’s question to clarify whether it had been part of the previous government’s plans to acquire the aircraft.
