3 Nov 2003

Calls for Royal Tongan Airline to be scaled back to a domestic service

4:45 pm on 3 November 2003

There are calls in Tonga for the national carrier, Royal Tongan Airlines, to be scaled back to a domestic service to reduce its operating costs.

A review conducted by KPMG shows the airline needs a cash injection from government of nearly ten million US dollars.

People's Representative, Dr Fred Sevele, says it is a grim situation for the government and tax payers, given the country's total recurring budget is only around 50 million dollars

He says government subsidies for domestic flights can be justified, but he doubts the worth of an international service.

"Already we have got three airlines that are flying into Tonga several times a week. You've got Air New Zealand, you've got Pacific and then you've got Polynesian Airlines. I've always been of the view that we are too small to run an international airline."

Royal Tonga's Chief Executive Logan Appu says an international service is vital because Tonga had been badly serviced until RTA began operating.

He also dismisses KPMG's financial assessment, and says RTA needs around 5 million dollars not twenty.