The owner of Tonga's domestic airline, Real Tonga Airlines, says their commercial services have been seriously impacted by reports that the government plans to revoke their licences.
Tevita Palu says he had not received any formal notice from the government despite several requests for clarification.
The reports also add the government plans to bring in a New Zealand operator to take over the domestic services.
Mr Palu says the airline is suffering since the news was leaked.
"We continue to get cancellations on bookings as a result of all this information released through media. There's a concern - feedback from the tourism industry and all the tourism operators around Tonga and also the wholesalers and our suppliers from overseas."
Tevita Palu also adds that the reports mean the government is now in breach of its contract with Real Tonga.