The Tongan government has dropped its One Domestic Airline Policy and granted two airlines the right to operate a domestic service.
Peau Vava'u Airways and Airline Tonga, who are both currently running domestic services were given the right to continue their services.
The government introduced its one Airline Policy in 2004, which resulted in the termination of a second operator, FlyNiu and gave a monopoly to Peau Vava'u, an airline owned by Crown Prince Tupouto'a.
However, the Director of Civil Aviation, Villiame Ma'ake, says it has now seen to be more beneficial for the kingdom if two airlines are present.
Airlines Tonga given permission to operate at the beginning of the year because Peau Vava'u could not service the outer islands.
Mr Ma'ake says the benefits were immediately obvious.
"After we brought in the other one, services were greatly enhanced in terms of efficiency and regularity and frequency so when we had the one airline policy we had a few complaints from here and there on a regular basis but after having the other airline, the two airlines in competition, it improved."