Tonga's controversial One Domestic Airline Policy was terminated by Cabinet on Friday, April 28, with two airlines granted the right to operate a domestic service.

The Peau Vava'u Airways and the Airline Tonga, who are both currently running domestic services were given the right to continue their services.

The Policy has been under review during the past few months and a final decision on whether to terminate the policy and allow the two airlines to compete was expected to be made in March.

The Tonga government introduced its one Airline Policy in 2004, which resulted in the termination of a second operator, FlyNiu Airline, and controversially giving the Peau Vava'u, an airline owned by Crown Prince Tupouto'a, the monopoly in the domestic air service.

Under an annual review of the monopoly operation of Peau Vava'u its services were found to be unsatisfactory and therefore a second airline, Airline Tonga was issued with an operating license last year, to compete with Peau Vava'u. To date Airline Tonga has operated a service throughout Tonga, including to the remote Niuas, and to 'Eua; while Peau Vava'u flies only between Tongatapu, Vava'u and Ha'apai.

The cabinet...’s decision to allow both domestic airlines to service the domestic air service was based on a recommendation made by Dr Feleti Sevele in his capacity as Prime Minister and Minister of Civil Aviation.

This cabinet decision also prohibits any other operator from entering the market, ...”due to our small domestic market, it will be unwise to allow another third operator to enter...”, said Feleti.

Airline Tonga

Sitafooti ...‘Aho the General Manager of Teta Tours Tonga, the major shareholder in Airline Tonga said today that they were very happy with the cabinet...’s decision, "it is a good move as it allows competition to take place within the market without having any time restrictions set.

"We have all learned from the consequences of the One Airline Policy, when only one airline was allowed to operate, now with two airlines operating, the traveling public can rest assured that the services will be provided," said Sitafooti.

Airlines Tonga currently has two Harbin Y12 aircrafts and now flies daily to Vava...’u, Ha...’apai and ...‘Eua from Monday to Saturday, and once weekly to the outer islands of Niuatoputapu and Niuafo...’ou.

Sitafooti said that Airlines Tonga is planning to bring in a Dash 8 type aircraft to service the Fiji ...– Vava...’u route later this year.

Peau Vava'u

Fakatele Faletau of Air Peau Vava...’u today said that from their point of view the Government had made their decision and stated that it was in the best interest of the general public and Air Peau was standing by that decision and were happy to support Government.

"We are all set to get into the competitive arena and we are not going to shy away from it," said Fakatele.

Air Peau Vava...’u currently flies to Vava...’u and Ha...’apai daily every day except Sundays.

The airline has also brought in a new 8-seater B65 Queen Air type aircraft to service the outer islands of ...‘Eua and Niuas, but is still waiting for an operational safety licence from Civil Aviation.

Fakatele said that it was important to note that they had been ready to fly to the outer islands of ...‘Eua and Niuas as of last year but had not been able to do so because the aircraft had not been issued with a licence.