AIR Niugini has laid off some employees in the airport and engineering sections as a result of the Covid-19’s impact on the airline’s operation, says chief executive officer Bruce Alabaster.
He told The National that all entitlements in accordance with the applicable employment agreements had been paid to them.
Alabaster did not give the number of employees laid off.
He said the airline was seeing a reduced number of passengers during the Covid-19.
He denied a claim that the employees were being replaced by contractors.
He said airline staff reduction around the world was unfortunate and not uncommon during the Covid-19 pandemic.
“Even Qantas has had to let over 6,000 staff go and has another 20,000 on leave without pay,” he said.
“Fiji Airways had to let go almost 800 citizen staff or over half of their entire workforce.
“Here in Papua New Guinea, it is understood that PNG Air had also stood down over 600 of its workforce on indefinite leave without pay, or over 80 per cent of its citizen employees.”
Alabaster said it was unfortunate that Air Niugini had to take such steps to ensure sustainability and that the country continued to have air transport.
“It is simply not viable for Air Niugini to continue to maintain the same number of staff when the schedule had reduced significantly.”
He said flights to Bougainville had been restricted in compliance with the state of emergency controller in Bougainville.
Alabaster confirmed that some drivers had been offered alternative employment with a security firm which would be providing bus services to Air Niugini staff.
The airline paid to those laid off 22 months in pay for the most senior ones.
The National Airline Employees Association president Eddie Foe said those made redundant included cashiers, 17 aircraft engineers and eight flight attendants.