Repossession of Tongan jet raises questions about country's finances

By ANNE BESTON

A Royal Tongan Airlines plane has returned to Brunei owners amid questions over the ongoing financial troubles of the Kingdom of Tonga.

The leased aircraft's return to Royal Brunei Airlines came as a scheduled High Court hearing between the two airlines did not go ahead yesterday.

Air New Zealand would not comment last night on whether Royal Tongan owed it money. "Air NZ's policy is to not comment on commercial arrangements it has with customers," a spokesman said.

Royal Tongan Airlines denied yesterday the leased 757 had been repossessed by Royal Brunei.

Public relations spokeswoman Maggie Kerrigan said the plane was grounded over the weekend because of a faulty wing flap.

A statement she issued on the airline's behalf said negotiations were under way to secure seats on other airlines for the estimated 1300 passengers expected to be affected by the Tongan airlines' "suspension of international services".

Air New Zealand was offering special one-way fares on flights between Auckland, Tonga, Rarotonga and Sydney but passengers needed to present Royal Tongan Airlines tickets to get the cheap deal.

Meanwhile, Australian news services reported Tonga faced a financial crisis after seizure of the jet.

Radio Australia reported that fuel suppliers, other airlines and travel agents had insisted on cash payments from the Tongan airline for some time.

An investigative accountants' review in June last year estimated budgeted losses of the airline were $13.2 million for the year ending June this year.

Royal Tongan Airlines also operates a domestic service.

'Akilisi Pohiva, a Tongan MP and pro-democracy campaigner, said King Taufa'ahau Tupou IV bore sole responsibility for what was happening to the airline.

Mr Pohiva said his party strongly opposed the leasing of the Royal Brunei aircraft.

"It is obvious the economy is going down the drain and there will be no recovery unless change is made," Mr Pohiva said.

Pro-democracy politicians have been angry over constitutional changes allowing a legal ban on newspapers critical of Tonga's royal family or Government.

The pro-democracy movement wants a directly elected government instead of the present system under which the Cabinet and half the MPs are appointed by the King or noble families.

Asked about reports of Tonga facing a money crisis, a spokesman for Foreign Affairs Minister Phil Goff said it would not be appropriate to comment on the financial decisions made by another country.

Stranded passengers

* Royal Tongan Airlines (RTA) says around 500 passengers have been stranded.

* During the next three weeks some 1300 passengers were booked to travel on the airline but have been booked on other flights.

* Many of the 500 stranded passengers had taken advantage of special one-way airfares offered by Air NZ to return.

* Air NZ was charging $249 for travel to or from Auckland to Tonga, and $349 for travel to or from Auckland to Rarotonga and to or from Tonga to Sydney.

Source: Royal Tongan Airlines