The government has reportedly decided to set up its own new domestic airline, Real Tonga CEO Tevita Palu told Kaniva News this morning.

“Cabinet approved to set up national airline as per PM and Ministers,” he said.

The decision comes after senior staff and pilots at Real Tonga had been laid off following a dramatic drop in revenue amid the Covid-19 crisis and its subsequent restrictions.

It also comes after a Cabinet select committee reviewed a proposal by these pilots for the government  to set up an airline so they could have jobs to do.

Palu said Real Tonga’s lease of the government Chinese MA60 is being processed to be terminated.

Real Tonga also leased government’s Y12 and that lease is being terminated, Palu said.

“Both aircraft returning to government,” he said.

He said Real Tonga will  continue to operate the SAA340 and BN2 aircraft.

He also confirmed his engineers were currently fixing one of its aircraft which was forced to return to Vava’u airport Wednesday morning after striking a bird shortly after take-off.

The Prime Minister’s office had been contacted for comment.

As Kaniva News reported last week, the Prime Minister said the government was still reviewing a proposal to set up its airline.

“It is important for the nation to know that the government does not take this lightly,” the Prime Minister said.

“The expense for operating an airline is huge and none of the previous airline operators in Tonga made any profit whatsoever.

“However, the service is required for the people.”

He said after seven years in business Real Tonga still faced problems and had approached the government for help.