26 Aug 2008

Tonga airline failure prompts call for competition

1:15 pm on 26 August 2008

Tonga's Chamber of Commerce says the kingdom needs at least two domestic airlines.

This comes as Airline Tonga, which is one of two airlines offering domestic air services, has suspended its flights indefinitely.

Several passengers are stranded and unable to connect to international flights.

The chamber's president, Paul Taumoepeau, says Tonga won't be able to cope long with only one airline.

"It's better to have at least two domestic services. In the past when we had problems with one airline then people get stranded in the outer islands and people can't get back to Tongatapu for their connection or business reasons. So definitely it's preferable to have two airlines operating at once."

Paul Taumoepeau says competition is also important to keep fares down and maintain the current standard of service.