No inter-island flights for Tonga as Royal Tongan closes doors [1]
Wednesday, May 19, 2004 - 15:22. Updated on Monday, May 5, 2014 - 11:22.
Royal Tongan Airlines ceased operation yesterday, closing its offices in Tonga, and about 100 people who were still employed in the airline's domestic service were told the bad news that they too have lost their jobs.
Only the accounting division of Royal Tongan is still in operation and an accounting officer said that all the employees who were laid off yesterday were promised by RTA administration one-month's salary plus their super-annuation.
This week's collapse of Royal Tongan was forced when the airline's only aircraft that was still flying, a Shorts 306 broke down and the insolvent airline just could not find the funds for the repairs.
Royal Tongan was the only airline serving Tonga's domestic routes, using a Twin Otter and the Shorts, but both of these aircraft are waiting for repairs. The airline's administration was hoping that the Tonga government, the sole shareholder, would step in and bail them out, but obviously government could not do it.
The RTA domestic collapse follows the termination of its international air service after the Royal Brunei Airlines on April 22 repossessed the Boeing 757 that was on Dry Lease to RTA. The airline planned to up-grade its more lucrative domestic service, hoping to refinance the International Air Service.
The management of RTA have been in closed meetings and have made no official statements. It is not known how many domestic passengers are stranded in Tonga's outer island groups by the loss of the domestic service, which comes at the start of the peak tourist season for the northern islands of Tonga. No announcements have been made about finding alternative air services.