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Royal Tongan Airlines Grounded.

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Old 20th May 2004, 06:10
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Question Royal Tongan Airlines Grounded.

Heard a rumour that they are grounded, completely this time, not just their international side.

Something about they cannot afford their maintenance.

Anyone actually know?
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Old 20th May 2004, 07:25
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That would be a New Zealand CAA issue then.

I understand RT operate under a N.Z. authority.

Can any of our Kiwi brethern enlighten us further?
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Old 20th May 2004, 07:31
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Yes I can confirm the company is going to be liquidated. I have just received an email from my housemate in Tonga and he passed on the news. Some creditors are going to be left awfully short changed out of this little fiasco as there really isn't much to liquidate, one dhc-6 with no control cables, an engine almost out of time and a sd-360 with only one engine that actually belongs to them. Not much in the way of property either. Opens up a good opportunity for a good operator to come in and clean up.


RFG,
yes RTA do operate under NZ CAA regs but this was a board decision. The chairman is the PM and a prince of Tonga.
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Old 20th May 2004, 07:34
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Lightbulb

Sad that it IS true.

Thanks for the confirmation.
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Old 20th May 2004, 08:01
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They did a great job

Not only did their GM do a number on the 757 operation, he ripped the heart out of the domestic operation as well.
Their domestic services had been reduced to a just few flights a week due to U/S aircraft & then it was unable to even get one aircraft into the air.
So many local people had put so much effort into keeping their domestic flights operational.
There is much that can be said, but better to keep quiet at this time.
There is money to be made; total revenue of about TOP5.8m in domestic & regional services with one each DH6-300 & DH8-100.
This would give about TOP0.85m profit before taxes. Net profit would be about TOP0.7m.
In a "return on investment" assessment, this is just over 70% as it would be <TOP1.0m to buy the assetts & lease the required aircraft & spares package.
It is a shame that one man can almost bankrupt a whole country. let alone the airline, on his vanity.
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Old 20th May 2004, 08:09
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Danger Royal Tongan Airlines.....

Not Grounded.....Finished!! Finita la musica...The fat lady has sung !!!

No staff been paid for nearly one month. No redundancy pay outs, super, etc. Left expats in country to find own way home, pay for full fare tickets plus cargo etc. back to country of origin. Best part about this is, staff super was dipped into as well to help meet costs.

Not to mention all the stranded pax RTA left when they ceased their international ops. Poor guys had to purchase new tickets with other airlines because RT tickets were considered useless to Polynesian and Air New Zealand. The best part about this is that RTA knew the 757 was going to be repossed, but thought they might just sell the punters the tickets anyway. Daylight robbery. Nobody was reimbursed>> Thanks for comming or ......Not!!

What about all the punters that had purchased their tickets in advance for travel during the up comming busy months?? No refund?? Just remember that Tonga is the abode of love...Thats all!!

Right before Tonga's most busiest tourist season ever. They had just finished promoting Tonga as a tourist destination, for the first time ever, through a series of tourism projects and roadshows, aimed at travel agents and the like from all over the world. That wasnt cheap either. (Thanks Australia). Not to mention all the other conferences and carnivals soon to be.

Its the only airline I know of that had complete monopoly, it was the only airline serving Tonga, and they managed to send themselves broke.

Why oh why delilah??

Love me tender....

Last edited by Whips'n'Chains; 20th May 2004 at 08:43.
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Old 20th May 2004, 09:04
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This will not be the only aviation skeleton on the Tongan wardrobe, nor the first time creditors have been bitten. I think RTA would be at least number five since the days of SPIA (South Pacific Island Airways), long, long ago.

A monopoly it may be, but one needs to get Tonga in perspective. It is a small impoverished nation of approximately 100,000 - about the size of a small regional center in Australia. From memory there are five or seven domestic island airstrips, the shortest around 700 meters.

Principal foreign income used to be tourism, repatriated funds from 100,000 Tongans living overseas, and kava exports to Europe as an ingredient in the manufacture of "the pill".

It is a delightful and very beautiful island archipelago, with wonderfully friendly people. But it can't sustain airline ownership, especially to the extent expected by the aristocracy.

I feel very sorry for the plight of the average Tongan citizen. I can’t see them getting another air service in a hurry.

Been there, done that!
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Old 20th May 2004, 13:11
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Once the last of the boat people leave Nauru and Australian aid drops back, one wonders if Air Nauru will go the way of RTA?
 
Old 20th May 2004, 18:07
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Angel Malo e Lelei

Sorry Torres,

I think you will find that Tonga can support its own airline through correct management, and in fact maintain healthy profit.

Even though this may be a small place, domestic flights did have good loadings, and would have been better if Tongas only postal service chose to send mail by plane rather than by boat to the outer islands, and apparently, even the 757 was due to start making the airline some money. This was forecasted by the current growth factor. Tonga had exceed its initial prediction for tourism by a fair margin, and it was only going to get better now that the Pacific Islands seem to be the choice for holiday makers these days.

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Old 20th May 2004, 21:16
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Tongan Airlines crashes

From AFP
20may04


ROYAL Tongan Airlines had collapsed after a lack of funds forced it to halt inter-island services, following the end of its international operations last month, a report said yesterday.

The South Pacific airline's NZ division stopped services and laid off 100 workers after the only aircraft it was still flying, a Shorts 306, broke down and it could not pay for repairs, the Matangi Tonga magazine website said.
A Twin Otter aircraft had already been grounded due to a lack of funds for repairs.

Royal Tongan's international services were grounded in April when Royal Brunei Airlines repossessed a leased Boeing 757 passenger aircraft.

The Tongan Government said last week its financial involvement in the airline covered nearly 14 million Tongan pa'anga (about $5 million) in capital commitments and bank guarantees, as well as unpaid landing fees. The Government has pumped 20 million pa'anga into the airline since its inception in 1985.

Tonga now has no domestic air service but is served by four international carriers.

The magazine said the airline's administration was hoping the Government, the sole shareholder, would step in and bail them out.

Royal Tongan's management has been in closed meetings and made no immediate comment.

The airline's collapse is the second financial disaster in four years for the archipelago north of New Zealand, which has 110,000 people.

King Taufa'ahau Tupou IV lost $26.5 million, or about 40 per cent of the Government's annual revenue, to his court jester, Californian Jessie Bogdonoff, who had made doubtful investments. US court action failed to recover any of the money.
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Old 20th May 2004, 21:47
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Whips'n'Chains,
So it would appear to be only the fact that there is a major lack of correct management over many years that has caused the demise of all these hopeful's, from the time of SPIA to the present, from making healthy profits??.

Prospector
 
Old 20th May 2004, 22:41
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No inter-island flights for Tonga as Royal Tongan closes doors

Nuku'alofa, Tonga. 19 May 2004.

Royal Tongan's remaining domestic service staff, meeting in the RTA Nuku'alofa Reservations office yesterday 18 May, were told to go home.

Royal Tongan Airlines ceased operation yesterday, closing its offices in Tonga, and about 100 people who were still employed in the airline's domestic service were told the bad news that they too have lost their jobs.

Only the accounting division of Royal Tongan is still in operation and an accounting officer said that all the employees who were laid off yesterday were promised by RTA administration one-month's salary plus their super-annuation.

This week's collapse of Royal Tongan was forced when the airline's only aircraft that was still flying, a Shorts 360 broke down and the insolvent airline just could not find the funds for the repairs.

Royal Tongan was the only airline serving Tonga's domestic routes, using a Twin Otter and the Shorts, but both of these aircraft are waiting for repairs. The airline's administration was hoping that the Tonga government, the sole shareholder, would step in and bail them out, but obviously government could not do it

The RTA domestic collapse follows the termination of its international air service after the Royal Brunei Airlines on April 22 repossessed the Boeing 757 that was on Dry Lease to RTA. The airline planned to up-grade its more lucrative domestic service, hoping to refinance the International Air Service.

The management of RTA have been in closed meetings and have made no official statements. It is not known how many domestic passengers are stranded in Tonga's outer island groups by the loss of the domestic service, which comes at the start of the peak tourist season for the northern islands of Tonga. No announcements have been made about finding alternative air services.

Copyright © 2004 Vava'u Press Ltd.. Permissions apply [email protected] or fax (676) 24749
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Old 20th May 2004, 23:08
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Arrow

Pospector,

Just forget what I even said. You obviously have no idea but to make a statement based on mere ......WHATEVER?? ANd I wont even bother!!!!!!!!!!!!!!!!

SPIA and whatever your refering to, is long gone. How about you do some current research before you just blow everyone away with your amazing reporting skills.





"Whips'n'Chains,
So it would appear to be only the fact that there is a major lack of correct management over many years that has caused the demise of all these hopeful's, from the time of SPIA to the present, from making healthy profits??.

Prospector"

PROSPECT,


Dont even bother replying!!!!

There is no need to explain this situation any further, and im sure that if you had lived in any pacific island, past or present, you would have more understanding of this situation that has not suprisingly developed....!!

YES MISMANAGEMENT!!!! A new word to be discovered in the Pacific dictionary!!!!!!!!!!!!!!!!!

Last edited by Woomera; 21st May 2004 at 05:32.
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Old 21st May 2004, 00:53
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whips'n'chains,
You must be joking "mismanagement" a new word??

In fact I have lived and was involved in the airline scene in the Pacific for a number of years, back when SPIA were still in business.

And yes, you are right again, there is no need for any suprise with the current situation.

I have friends who asked me if it was a good idea to book their holiday in Tonga, so yes I did some research, just 2 weeks ago, and I am very happy to have saved them their hard earned money.

Prospector
 
Old 21st May 2004, 01:30
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Does anyone know if John and Lucy are still kicking around over there? Both learnt in Aus before heading home to RTA.

BM
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Old 21st May 2004, 02:39
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Sounds like they were being run by Ansett managers...
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Old 22nd May 2004, 10:41
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G,day Whips,


I totally agree with you whippy and hang in their mate! And for those that think Tongans are friendly...your wrong! Alot of them don't even want you(as an expat) in their country. Its those above average tongans who this is mainly aimed at. Its in some ways invasion of there self destructive criminal ways.

You just have to be there and work with them to understand this. As for the CEO...his just a big crim in a tie who has put this archipelago of self implosion beyond the black hole!

And so unfortunately the average Tonagn has no choice but to like things just the way they are.*UCKE% UP!

So NewZealand & Oz pleezze stop throwing millions of bucks in aid for a country that has a Prime Minister who cousins and bro's are throwing it into their own personal endeavours and not for the benefit of the ...very poor average Tongan!!!


BBD
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Old 22nd May 2004, 16:01
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Devil The Friendly Islands.

It never cease's to amaze me, it took this long for them to go broke,years ago I use to fly up there with a fellow kiwi chap that hit the nail right on the head , he used to refer to RTA as the CARROT company, and we were all donkeys.

Any one know what has happened to "Quiet" Pete?.

And maybe someone can let me know what happened to a engineer from there years ago, John Skidmore? any info appreciated.

It is interesting to note that Captain James Cook gave Tonga the name the "Friendly Islands" because the people put on a huge feast and greated him and his shore party warmly??, but they infact did this to portray a false sense of security to Cook and his party, as the so called Friendly Islands people's actual intention was to bludgeon them to death and put them all in a " COOKING pot" bubbling away out of site, but then as they were trying to put their plan into action, one of the Cheifs from VAU VAU, informed his people that in doing this,more ships with "BIG THUNDER STICKS" would come and cause them all problams, so they decided to go back to the PARTY.

( Has to be a moral in there somewhere ).

In other words they are TREACHEROUS B-Stards, at the best of times.

The Tongan term VIENGA VALA , comes to mind.

Loosely translated it means FOOLISH PLAY.

 
Old 3rd Jun 2004, 11:29
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Does the prince have any idea on how to run a Domestic Airline??

He should of been sent to jail for RTA, and now this...


"Unlicensed "airlines" selling tickets in Tonga An old DC3 aircraft.
Nuku'alofa, Tonga. 2 June 2004.

Tonga might possibly have a new domestic air service operating by June 9, but nobody knows for sure how or when a new service can become operational.

It's a question that worried tourist operators, stranded local people and frustrated visitors to Tonga have been asking since the Royal Tongan Airlines domestic service came to a sudden end on May 17.

Meanwhile unlicensed air operators are selling tickets for flights that have not happened.

Although there was talk that nine applications for a domestic air service licence had been lodged with the Ministry of Civil Aviation, the Director of Civil Aviation Viliami Ma'ake said on May 28 that only one airline, Pion Air of New Zealand had applied.

There were also letters of intent to offer a domestic service from Teta Tours and Fly Niu Airlines.

While safety assessments were still being carried out, Pion Air with its local affiliation Vava'u Airwave went public and advertised its flying schedule and airfares. It even started selling tickets for its first flight advertised on Saturday May 29, but the flight did not happen.

Viliami Ma'ake said that Pion Air is a New Zealand company currently flying domestically in New Zealand and therefore the Civil Aviation of New Zealand first had to grant Pion Air with a license to come and operate domestically in Tonga, and after that the next step was for Pion Air to apply for a licence to operate in Tonga.

“ Normally this kind of application takes about 90 days to be finalised and Pion Air just submitted its application on May 17 so it has not been a month yet”.
Meanwhile the Fly Niu Airlines on May 31 announced that a DC3 aircraft would arrive in Tonga on June 3, and their operation would start on June 9, but no one knows under what licensing.

The collapse of RTA and the sudden end of its domestic service is a devastating blow to the Tongan economy, because it came at the beginning of the tourist season, when thousands of visitors want to travel to the outer islands particularly to Vava'u, the tourist centre of Tonga. The first whales for the season have been spotted this week, but the tourists can't get to Vava'u to enjoy them.

The demand for transport is heavy also because the annual conference of the Free Wesleyan Church of Tonga will run from June 16 -24 in Neiafu, Vava'u. The annual conference of the Free Wesleyan Church usually attracts 1,200 overseas Tongans, in something like a religious pilgramage, during which the participants pray and attend religious feasts.

The transport problem was further compounded when the one of two ferries that serviced the Tongatapu, Ha'apai and Vava'u route, the MV Pulupaki went aground on Hakauloa Reef on May 26.

To find a solution to the problem the Ministry of Civil Aviation has been encouraging interesting parties to submit applications for a licence to operate the domestic air service."

Matangi Tonga.

"Up and Away: A newly formed Tongan company, known as the Air Waves ofVava\' u, says it will use a DC-3 plane for domestic air services after the collapse of Royal Tongan Airlines.

The plane, bought from New Zealand company Pion Air, is due in Tonga on June 5 in time to facilitate travel to the Free Wesleyan Church\'s Annual Conference on Vava\'u.

Radio Tonga says Pion Air will operate the aircraft and provide technical expertise.

It says Crown Prince Tupoutoa is one of the owners of the new service.

This comes as the Government is calling for interested parties to meet next month in Nuku\'alofa to look at domestic air service options.

Meanwhile many workers in the tourism industry in Vava\'u and Nuku\'alofa have been laid-off due to a sharp decline in the number of tourist arrivals since Royal Tongan Airlines suspended its domestic services.

Radio Tonga reports affected employees, tour operators and tourism businesses will present a petition to the Legislative Assembly and the Government, highlighting their plight.

The petition is being distributed for signatures and calls on government to make urgent redress of their plight.

It also outlines the encouraging trend in the number of tourist arrivals in recent years when 5,000 were recorded in 2002 and 8,000 the following year.

The Vava\'u Tourist Association targeted between 10,000 and 20,000 tourists would arrive in the island region this year.

The petition is expected to be sent to Nuku\'alofa on Wednesday where businessman Samiu Vaipulu will forward it to the Legislative Assembly and the Government."

Niue News
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Old 3rd Jun 2004, 21:33
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The DC3 will do a lot of flying - until the AVGAS bill needs to be paid....
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