28 Nov 2008

Tonga unhappy with Air New Zealand subsidy demand

4:45 pm on 28 November 2008

Tonga's Prime Minister has taken issue with Air New Zealand's call for it to pay millions of dollars in subsidies or risk losing the once weekly flight to and from Los Angeles.

Air New Zealand has said it will cut the flights unless Tonga and Samoa underwrite the cost.

Earlier this week, the Cook Islands Government announced it would maintain a subsidy of about three million US dollars to ensure the Rarotonga/Los Angeles link was kept open.

But Dr Fred Sevele has told Matangi Tonga he is not happy with the airline's threat.

He says a commission is looking at the request but he queries how a subsidy can be justified when loadings are reportedly 76 percent.

Dr Sevele says Tonga will meet shortly with Samoa to develop a common position on the Air New Zealand request.