Needed: $20.6 million [1]
Monday, December 1, 2003 - 09:40. Updated on Thursday, May 1, 2014 - 17:29.
Matangi Tonga, Vol. 18, No. 3
The Tongan government as the principal shareholder in Royal Tongan Airlines will be required to inject $20.6 million pa...anga into RTA over the 13 months between June 2003 and July 2004 in order for the company to achieve and then retain solvency, according to advise from KPMG Financial Advisory Services.
The following figures were released to Tongan Members of Parliament by the Minister of Finance:
Deficiency in share-holders funds at 3⅓/03
T$5.4 m
Budgeted losses three months to 30/6/03
$2.0m
Budgeted losses year ending 30/6/04
$13.2m
Total $20.6m
The KPMG report noted that RTA incurred an actual loss of $8.4 million during the nine month period ended 3⅓/03 compared to a budgeted loss of $3.6 million. The principal reason for this was the non-achievement of revenue targets, when the average load factor for the B757 for the four months ended 31 March 2003 was 34% compared to an original budget of 65%.