The monopoly of Peau Vava'u Airways in Tonga's domestic air service ended today, December 9, when a new operator Airlines Tonga Air Fiji Ltd was to be issued with a license to compete on Tonga's domestic routes until March next year.

The allowing of a second airline to compete in the domestic air service is a turn around by the Tongan government on its controversial One Domestic Airline Policy that was introduced in May 2004.

When the government declared its One Domestic Airline Policy last year it meant the termination of a competing service run by the FlyNiu Air.

The granting of the sole right for Peau Vava'u to operate the domestic air service was based on a number commitments by the airline to provide a quality domestic air service, including flights to the remote Niuas islands of Tonga.

The failure of the Peau Vava'u to fulfill its obligation which was stipulated under the government's One domestic Airline Policy, particularly its service to 'Eua, Niuafo'ou and Niuatoputapu, forced government to review its policy and open up the Domestic Air Service for bidding.

Viliami Ma'ake, the director of the Ministry of Civil Aviation, said in a Press Conference that four airlines that bid for a second operator's lisence were the Inter Island Airways from American Samoa, the Jetholders Australia Ltd, Palu Aviation Services Ltd, and the Airlines Tonga Air Fiji. The applications by the four contenders were assessed by the Ministerial Advisory Committee and their recommendation was for a second license to be given to Airlines Tonga Air Fiji Ltd. - a joint venture between Teta Tours Tonga and Air Fiji Ltd. They will start operating on December 19.

Viliami said that it was only a one-year permit, which would last until August 14 2006. The Peau Vava'u's license will also expire next year and the service of these two airlines would be reviewed in March next year, when the only one that has complied fully with their obligation, include providing services for 'Eua and the Niuas would be given a monopoly to operate the domestic air service.

Viliami said that the Airlines Tonga Air Fiji Ltd will start their service, flying between Tongatapu, Vava'u and Ha'apai, using a 19-seater Harbin y12 aircraft, and they have until March 2006 to provide a service for 'Eua and the Niuas.