Will Tonga have one or two domestic airlines?

Will Tonga have one or two airlines? - Finehika Vavatau:
This article brought up some interesting thoughts.One of these is that Tonga seriously needs to take a look at its One Airline Policy (OAP) if its widely touted policy of strengthening the private sector is to succeed. Deciding whether the licence to operate will go to one operator or two should not be the case. It is deciding what is good for Tonga (in terms of revenues and infrastructure, airline customers…’ pockets, and the encouragement of investment in our ailing economy) that is more the crucial issue.

The very existence of the OAP will still send a strong message to customers of a policy that will still mean a monopoly on ticket prices (as opposed to an open market where customers can choose from a competitive market price) and a monopoly on service (availability and frequency of flights, etc). It may also discourage investment in what is seemingly a booming sector that can bring in a lot of tax earnings for the government. So why not scrap the OAP altogether and let the market decide? Will this not be a sign that Tonga is indeed serious about developing its private sector and encouraging greater investment in its economy?

It is also great indeed to see that an independent committee has been set up to make recommendations on this issue. This signals a move in the right direction in terms of greater transparency and accountability in policy formation. I would have thought though that more involvement from the private sector would have brought a different perspective to the thinking of the committee but it is indeed a good start in the right direction. Long may this spirit live. - Finehika Vavatau