Tonga's domestic airline Lulutai faces uncertain future
In the turquoise waters off Vava'u, in Tonga's north-east, humpback whales migrate to breed and birth each year.
It is a true natural spectacle; one that brings in tourists from across the world.
From July to October, they are given the unique opportunity to watch and even swim with the migrating humpback whales.
But today, the future viability of Tonga's whale-watching industry is hanging in the balance.
"Last year wasn't a good year," Takitoa Taumoepeau, who oversees operations for one of the country's longest-running whale watching charters, told the ABC.
"We had a very short season; we lost two months because there were simply no flights. Tourists couldn't get here."
Tonga's national airline Lulutai has been at the centre of controversy since its inception in 2020.
During last year's whale season, only one of its three planes was operational, with the airline forced to charter aircraft to accommodate demands, resulting in patchy services.
This came after concerns from passengers over safety, with repeated groundings of one its main aircraft only a year after it was bought.
In one case, the plane was grounded after colliding with a cement block while taxiing on a runway.
It comes amid a string of controversial financial decisions and alleged mismanagement.
And on the ground in places like Vava'u, the problems with Lulutai are having real-life impacts.
"We're not just taking tourists out to sea," Mr Taumoepeau said.
"The whale-watching industry supports hundreds of jobs, we're sustaining livelihoods, preserving culture, and trying to keep this industry alive for future generations."
Lulutai is not alone in its struggles.
Neighbouring Vanuatu Airlines went into liquidation in May last year and is now 49 per cent owned by its government.
The viability of Pacific airlines has long been under the microscope, with aviation experts pointing to the vast distances they fly and the high costs of fuel and maintenance.
In Tonga, Lulutai was established in 2020 following the collapse of the privately owned airline Real Tonga Limited.
The airline, which is owned and operated by the government and propped up by public funds, is struggling to stay afloat, with reports circulating in February that it may collapse and be wound up.
The government has since moved to shore up its future. It this week revealed it was in discussions with two parties to operate the airline.
The ABC also understands the airline is looking to the one consistently profitable airline in the region, Fiji Airways, for guidance. And the airline's sale has not been ruled out if a buyer can be found.
In Tonga, Lulutai is more than an airline — it is now a public investment.
Lulutai has been forced to take out a $4 million loan from Tonga's Retirement Fund Board — a fund established for workers' retirement savings.
This comes on top of the fund's 2023 decision to take a 27 per cent investment stake in the airline at a cost of $2.6 million.
The company has recently taken out another $1.3 million loan to stay afloat.
In Tonga, where the economy is small, the loans and public investment make up about 1.5 per cent of the country's annual GDP.
Prominent Tongan economic commentator Sione Fifita said the Retirement Fund Board's stake in Lulutai Airlines was "wrong" and it disregarded the fund's core responsibility.
"Investment is not to be made for the sake of investment," Mr Fifita said.
An internal presentation to the newly appointed board in January this year, obtained by the ABC, reveals a struggling state-owned airline that is reliant on government subsidies, struggling with aircraft shortages and dealing with a lack of public trust.
The internal presentation admits Lulutai has had to depend heavily on the taxpayer funds to stay afloat, while passenger numbers fluctuate and critical routes remain under served.
The report also cites the grounding of the airline's 34-seater Saab 340 aircraft in December 2023, after it collided with a cement block while taxiing, as a "key disruption" to service reliability.
Lulutai has even been used as a trigger to change governments, with the management of the airline cited as one of the main reasons behind the successful push to remove Tonga's prime minister Siaosi Sovaleni last year.
The airline this month returned to having three operational planes, two of which are owned by the airline and one of which is leased.
Tongan Minister for Public Enterprises Piveni Piukala said efforts to restore Lulutai Airlines's operations were progressing but "financial transparency" remained a concern.
He said the government was also negotiating with the Fijian and Australian governments to support its domestic services.
"I'm very satisfied with where Lulutai is at right now in terms of gaining [the] confidence of the public to travel," he said.
Back in Vava'u, whale-watching operators such as Mr Taumoepeau just want a consistent service they can rely on.
"This is where it is important for government to critically look at this and properly prioritise what's important," he said.
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