Minister for Public Enterprises Calls for a Royal Commission into Lulutai Airlines
In his address regarding Lulutai Airlines at Friday’s press conference, the Minister for Public Enterprises, Hon. Piveni Piukala, stated that he had discussed with the Prime Minister the possibility of approaching King Tupou VI to establish a Royal Commission to investigate the controversial purchase of Lulutai Airlines’ Twin Otter aircraft in 2023. The call for an inquiry follows revelations that the aircraft, commissioned by the Crown Prince in November 2023, has been plagued with maintenance issues, and both of its engines are due for replacement within the next two months.
The Minister revealed that he had only recently discovered that the aircraft’s engines are set for replacement in April this year at a cost of millions. Hon. Piukala added that when he questioned the CEO about this, he was informed that the matter had been left to experts to conduct due diligence before the aircraft was purchased.
The purchase of the Twin Otter aircraft was already a contentious issue, with civil aviation experts previously raising concerns about its condition. Since its addition to the fleet, the aircraft has faced multiple maintenance problems, raising alarms about the decision-making process behind its procurement.
Hon.Piukala disclosed that while Lulutai Airlines owns three aircraft, only the Twin Otter is currently operational. However, even this aircraft has been frequently grounded for maintenance, further straining the airline’s operations.
Adding to the controversy, Deputy Prime Minister Hon. Fusimalohi, who joined Hon. Piukala during the media briefing, revealed that the Director of Civil Aviation had grounded the Twin Otter on Tuesday due to a regulatory violation. Operations resumed on Wednesday only after the necessary requirements were met.
Hon. Piukala compared the situation at Lulutai Airlines to the 2009 Princess Ashika disaster, which claimed 74 lives. The Royal Commission that investigated the disaster found systemic failures and negligence in the vessel’s acquisition and oversight, ultimately leading to its tragic sinking. Hon. Piukala warned that a similar lack of proper oversight in Lulutai Airlines’ operations could have dire consequences.
Beyond safety concerns, Lulutai Airlines has been at the centre of financial and governance controversies. Since its establishment in 2020, the airline has accumulated over T$21 million in expenses and recently requested an additional T$7 million government subsidy to remain operational. Public outcry has intensified over the role of the Retirement Fund Board in financing the airline, with reports that T$10 million was allocated—T$4 million in shares and T$6 million as a loan—to support Lulutai Airlines. This has raised serious questions about the security of retirement funds and potential conflicts of interest.
Ex-Prime Minister Siaosi Sovaleni has faced scrutiny over his dual role as Chairman of both Lulutai Airlines’ Board and the Retirement Fund Board, a position critics argue compromises transparency and impartial decision-making. In August 2023, Lulutai Airlines issued 784,314 additional ordinary shares, equivalent to 27.19% of the company’s shares, to the Retirement Fund Board to finance the Twin Otter purchase—an arrangement now under heightened scrutiny.
The mismanagement of Lulutai Airlines has already had political consequences. In late 2024, Prime Minister Sovaleni resigned ahead of a planned vote of no confidence, with opposition figures citing Lulutai’s financial troubles as one of the key reasons for the motion.
With mounting pressure, the Eke Government’s potential request for a Royal Commission could be a crucial step in addressing concerns surrounding Lulutai Airlines while also serving as a clear warning to government leaders about the consequences of failing to uphold the rule of law. If established, the inquiry would aim to uncover the full extent of financial mismanagement, regulatory failures, and governance conflicts tied to the airline.
A Royal Commission would not only bring accountability but also set a precedent for better governance in state-owned enterprises, ensuring that public funds and safety regulations are upheld to the highest standard.
