Royal Tongan extends services [1]
Monday, November 10, 2003 - 15:42. Updated on Sunday, May 11, 2014 - 10:50.
In spite of its critical financial problems, Royal Tongan Airlines plans to go ahead and extend its international services.
On November 3, only days after a report was presented to the Tongan Parliament pointing out that the airline needed an injection of $20 million to remain solvent, the Board of Directors announced that Royal Tongan was extending both its domestic and international service during this southern summer season.
Hon. 'Akau'ola, the Governor of Vava'u, and one of the five RTA told a Press Conference that RTA would increase its weekly flight to the Northern Niuas to twice a week, and that RTA should be flying to Hawaii before the end of the month. 'Akau'ola said that good news for fish exporters was that RTA flight to Auckland, New Zealand, on Friday had been rescheduled to connect with Quantas for Japan and to other Asian destinations. With regards to a parliamentary report that RTA would become insolvent unless government injected $20 million. 'Akau'ola replied that one solution to the airline...s accumulated debts was "to write it off".
While the comment has left the airline...s creditors jittery, 'Akau'ola said that RTA was still hopeful of an injection of capital funds from government in order for the airline to remain solvent.
On the question of why government was not selling some of its shares, 'Akau'ola said that it was an issue under consideration, and there was foreign interest from Australia and China to buy shares in the airline.