Royal Tongan Airlines' Aircraft Grounded

April 24, 2004 - 8:30AM

Royal Tongan Airlines was grounded on Friday after Royal Brunei
Airlines seized its only operating aircraft, a Boeing 757, aviation
industry sources said.

The government-backed airline operated the aircraft daily between New
Zealand, Australia and Tonga, and also ran services to the Cook
Islands and Hawaii.

The source said the airline, which flew its last service Thursday,
owed "a lot of money and had numerous creditors".

The aircraft, which flew in Royal Tongan colours but was owned by
Brunei, was now being stored in the Air New Zealand hanger at Auckland
International airport.

The improvised Tongan kingdom chartered the aircraft in November 2002
in what was initially a deal between King Taufa'ahau Tupou IV and the
Sultan of Brunei, but it caused a severe drain on government finances.

The government did not revealed how it was being funded but the main
source of money was from the governments Tonga Telecommunications
Commission.

Last year commoner politicians in Tonga leaked a report for the Tongan
government by the accountancy firm KPMG Financial Advisory Services,
which said the airline had forecast a 65 per cent load factor but was
running at only 34 per cent.

KPMG said the airline would have to put 10 million US dollars - or 13
per cent of the government's budget - immediately into the airline to
keep it flying.

Neither the Tongan government nor the airline were commenting Friday.
...end

Air New Zealand is looking at ways to help stranded passengers.

Cath
--multiplaza.nl.nu--