Regional travellers in New Zealand are facing disruptions after the Civil Aviation Authority (CAA) grounded regional airline Sunair for 10 days, effective late Wednesday.

The suspension comes just days after reports revealed that the airline had allegedly bid to operate Tonga’s domestic air services.
However, the company has now been temporarily barred from flying, raising questions about its operational status in New Zealand.
The suspension would run for 10 working days to Wednesday, July 23.
“These concerns relate to maintenance and safety of their aircraft,” a CAA spokesperson said.
“The director of Civil Aviation has suspended the airworthiness certificates for aircraft operated by Sunair Aviation Ltd for safety reasons while we address these concerns,” the NZ Herald quoted the spokesperson as saying.
They said Sunair normally operated under Civil Aviation Rules Part 119 and under Part 135, which related to commercial helicopters or small aeroplane operations.
“We are working with Sunair Aviation Ltd to address the safety concerns, which will help inform our next steps.”
Despite the ban, Sunair’s chief executive assured passengers that those with existing bookings would still be able to travel, as alternative flights with other operators have been arranged.
The suspension comes as the Tongan government extends the bidding process for the operation of its domestic carrier, Lulutai Airlines, by another two weeks.
Lulutai Airlines Bid Extended
The Tongan government had initially set a deadline for bids this past Monday, inviting outside operators to submit Expressions of Interest (EOI) to take over the controversial domestic airline’s operations.
However, Public Enterprises Minister Piveni Piukala confirmed last week that the bidding period was extended by two weeks following advice to refine the selection criteria.
Minister Piukala stated that the extension was necessary to ensure a clear distinction between bidders who intend to operate the airline and those who simply wish to purchase shares in the business.
The move aims to bring more transparency and structure to the process.
The grounding of Sunair adds another layer of complexity to Tonga’s domestic aviation sector, which has faced ongoing challenges since the collapse of former operator Real Tonga and the subsequent launch of Lulutai Airlines.
Lulutai Airlines Stabilises
As Kaniva News recently reported, Lulutai Airlines is now breaking even after years of losses, according to Tonga’s Deputy Prime Minister, Taniela Fusimalohi.
The airline had faced significant financial struggles since its launch in 2020, relying on state loans and investments from a local pension fund to remain operational.
Its financial difficulties worsened when its insurer refused to cover damage to a Saab 340B in late 2023. Earlier this year, the Tongan government announced a review of the airline’s finances to prepare it for sale.
Currently Lulutai Airlines operates three aircraft, a DHC-6-300, a Harbin Y12, and a Saab 340B damp-leased from Air Chathams. It flies from Tongatapu to Eua, Ha’apai, and Vava’u.