The controversial US$6.25 million purchase of Lulutai Airlines’ Twin Otter — a deal that stunned Parliament after it was revealed by the media, was subsequently surrounded by allegations of secrecy, drew serious concerns over its price and due diligence, and was followed by substantial maintenance-related problems — has taken another troubling turn.
Prime Minister Lord Fakafanua has revealed that the aircraft is struggling to make a profit, partly because the weight of Tongan passengers can restrict the number of people it is able to carry on some flights.
Fakafanua made the revelation at a press briefing yesterday afternoon as he outlined problems his government had identified with the aircraft, purchased by the former Huʻakavameiliku government, and Lulutai’s continuing struggle to operate profitably.
Fakafanua said passenger weight meant all 19 seats could not be filled, with only around 12 passengers able to be carried. This left the airline with the choice of reducing passenger numbers or cutting other loads carried on the aircraft.
The revelation follows earlier complaints — and at times public ridicule — over the aircraft, with critics asking whether this was a brand new or a second hand aircraft, and whether the Twin Otter had been properly assessed for its suitability for Tonga before it was purchased.
Shortly after the aircraft arrived in Tonga, Kaniva News saw livestreamed videos shared on Facebook from inside the Twin Otter in which passengers complained that the seats were too small, with some adults appearing to need two adjoining seats to sit comfortably.
Engine replacement deepens purchase concerns
Concerns over the purchase intensified after the Huʻakavameiliku government resigned, with incoming Public Enterprises Minister Paula Piveni Piukala saying he believed proper due diligence had not been carried out.
He indicated that he had found no record of a feasibility study assessing whether the aircraft would be commercially viable or become a financial burden on the country.
After discovering that both engines were due for replacement barely a year after the aircraft was purchased, Piukala considered seeking the King’s consent to establish a Royal Commission to investigate the controversial deal.
When Kaniva News broke the news of the purchase in August 2023, some MPs were stunned and questioned then Prime Minister Huʻakavameiliku in Parliament about whether the report was correct. He confirmed that the aircraft had been purchased.
The disclosure triggered heated debate in the House, with several MPs claiming the aircraft purchase had not been provided for in the Budget — a claim Huʻakavameiliku strongly disputed, insisting that it had been included.
The controversy became one of the central issues in the 2023 vote of no confidence against Huʻakavameiliku, which he ultimately survived, before resigning amid a second no-confidence motion the following year.
Australian funding fuels controversy
The 2023 motion, led by his premiership rival Dr ʻAisake Eke, also raised questions over US$2 million in Australian Government funding that was used to help finance the aircraft.
The Huʻakavameiliku government maintained that the Australian funding was intended for the Twin Otter purchase.
The Opposition, however, presented a letter from the Australian High Commissioner in Tonga which it said confirmed that the money had been provided to Tonga as budget support rather than specifically to purchase the aircraft.
Experts question aircraft purchase,
As controversy over the purchase intensified, Kaniva News spoke to aviation experts who raised concerns about the aircraft. Some said it had allegedly been grounded in China from 2018 until 2023 and warned that certain aircraft components must be replaced according to calendar time, regardless of whether the aircraft is flying.
One expert questioned why the purchase price had been paid in full while the aircraft remained in China and said Tonga should have conducted its own inspection to ensure the aircraft met the safety requirements applicable in the Kingdom.
Problems continued after the aircraft arrived in Tonga. About four months later, it was grounded after damage to a computer sensor forming part of its Air Data Attitude Heading and Reference System.
By February 2025, the Twin Otter had undergone repeated maintenance groundings, while the Government was confronting the multimillion-dollar cost associated with replacing its engines.
The Twin Otter was also financed with TOP$10 million (US$4.2 million) from Tonga’s Retirement Fund Board — comprising a TOP$6 million (US$2.5 million) loan and a TOP$4 million (US$1.7 million) equity investment — according to the Government’s own Budget Strategy FY2025.
The TOP$6 million loan is guaranteed by the Government. Former Prime Minister Dr ʻAisake Eke previously told Kaniva News that while the guarantee provided security for the Retirement Fund, it transferred the financial risk to the Government.
He warned that if Lulutai failed to repay the loan, the Government would have to find the money elsewhere in its budget — potentially leaving taxpayers to ultimately bear the cost of the guarantee.
