Real Tonga Airlines (Tongatapu) is close to bankruptcy, with most of its debt pile owed to the country's government, according to a report in the South Pacific Islands publication. The airline's dire situation was revealed by Tevita Lavermaau, the country's Minister of Finance, in a government press statement.
China gifted two aircraft to Tonga to operate its domestic services - a Y12 and an MA-60 - which had subsequently been dry-leased to privately-owned Real Tonga, as the government did not have its own airline. In addition to the lease costs, the carrier also owes outstanding landing fees to the government. Its parlous financial standing comes despite the fact it has the domestic market to itself.
The minister claims that the carrier had been operating at a loss since its inception seven years ago and he has suggested that the airline could be closed down. The country's Prime Minister, Pohiva Tu'i'onetoa, speaking on local radio, had indicated that a proposal had been submitted to Tonga's cabinet on starting a new airline, involving a group of former pilots and staff from Real Tonga, although no decision had been made.
The current COVID-19 outbreak, and its impact on air travel, is making matters worse for Real Tonga. According to its official Facebook page, the airline has been cancelling all of its flights on a rolling basis for some time and most recently suspended its services on May 12 and 13 "due to an operational issue." There are fears that should the carrier be allowed to close, that many of the more remote islands - Eua, Ha'apai, Vava'u, Niuafo'ou, and Niuatoputapu - will have no air links.
Talks continue between the government and the airline, with two possible options being considered - the state setting up another airline or the government and Real Tonga establishing a joint partnership.
According to the ch-aviation schedules module, Real Tonga's domestic services are flown not just by its Chinese-made aircraft, but also by a Saab 340B and a BN-2.
