Press release

Borneo Bulletin Weekend

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April 25, 2004

 

Royal Tongan Airlines' only aircraft grounded

By Lyna Mohammad
The Tonga government-backed Royal Tongan Airlines, which operates daily between New Zealand, Australia and Tonga, was reportedly grounded on Friday after Royal Brunei Airlines took possession of its only operating aircraft, a Boeing 757, news agency AFP reported, quoting aviation industry sources in New Zealand yesterday.

The source was quoted as saying that the airline, which also runs services to the Cook Islands and Hawaii, and flew its last service last Thursday, owed "a lot of money and had numerous creditors".

"The aircraft, which flew in Royal Tongan colours but was owned by RBA, is now being stored in the Air New Zealand hanger at Auckland International Airport," an AFP report added.

AFP further reported that the Tongan kingdom chartered the aircraft in November 2002 KPMG Financial Advisory Services reportedly stated that the airline, which forecast a 65 per cent load factor, was running at only 34 per cent.

It also said the airline would have to put 10 million US dollars or 13 percent of the government's budget immediately into the airline to keep it flying.

Neither the Tongan government nor the airline was commenting Friday the report added.

Meanwhile, sources here at RBA were not available for comment.

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