Open Skies Policy for PNG
In the Post Guria today......
Tuesday 21st July, 2009
Govt eyes ‘open sky’ policy
By Gorethy Kenneth
THE Government is now closing in on open sky policy and by the end of this year should enter into Phase 1 of the operation.
This is the international competition allowing all domestic aviation routes with airlines being permitted to use aircraft of their choice on these routes.
And under the Air Service Agreements the Government is also negotiating the PNG South Korea route after the PNG/Fiji, PNG/Malaysia and PNG/Australia.
“The overall strategy is to seek to achieve fair and equitable opportunities for each country’s designated carrier,” Mr Polye said.
“When negotiating new bi-lateral air services agreements and reviewing existing ones, PNG will seek to incorporate:
- Multiple destinations;
- Multiple carriers;
- Airlines to determine capacity;
- Airfares determined by market forces and where an international fare can only be disallowed if both governments agree-known as “double disapproval pricing”;
- Liberal charter arrangements; and
- Practices that support fair and equitable competition.
“Full completion will be allowed on all domestic aviation routes with airlines being permitted to use aircraft of their choice on these routes, subject to safety and airport capacity requirements,” Mr Polye said.
“Foreign owned companies will be allowed to operate PNG’s domestic air transport market subject to them providing evidence that the equity holding of PNG citizens will be 51 per cent within five years of establishing the local operation.”
Mr Polye said this approach had been earmarked to enhance competition which would be introduced over an extended period and would be detailed as part of the long term National Strategy and should be made in phases:
- PHASE 1 – International Competition
- PHASE 2 – Encourage domestic operators to compete against other existing operators; and
- PHASE 3 – allowing full entry of international operators into domestic markets.
Air Niugini yesterday advised they were still undergoing negotiations therefore could not comment further.