Captain Nomad
30th Aug 2006, 00:44
Went looking for 'PNG ples bilong tok tok' but it seems to have vanished... :confused:
The 'National' had this to say after yesterday's ICCC's ATI hearing in Moresby:
By ISAAC NICHOLAS
AIRFARES for both domestic and international flights must remain subject to market forces, civil aviation expert Sir Joseph Tauvasa said yesterday.
Sir Joseph, a former head of Air Niugini and a director on the Civil Aviation Authority, warned that a return to the price control regime on airfares would force airlines to review their operations.
He said the airlines may be forced to omit unprofitable routes, use aviation charters to earn revenue and enter into short-term price wars to maintain market share that may force shortcuts to service and ultimately, running the risk of unsafe operations.
“I was there. I regulated the price as director of Civil Aviation once upon a time, and it’s very difficult to do that.”
Sir Joseph was speaking at the public hearing reviewing the air transport industry (ATI) in Papua New Guinea at the Crowne Plaza Hotel in Port Moresby yesterday.
Sir Joseph said the Open Sky policy had not seen entry of international planes into PNG’s domestic aviation but there was likelihood of entry of new operators to offer competition to the established operators like Air Niugini and Airlines of PNG.
He said reductions should not be enforced by price control as it would be counter-productive, given similar situations around the world including the bankruptcy of Italia, the national airline of Italy and smaller operators in PNG including Talair and Douglas Airways because of very stringent regulations by the authorities
He said airlines operators in PNG had the freedom to enter into co-share arrangements with international operators to establish competition and offer choices of goods and services to the travelling customers including tour operators.
“PNG aviation remains small and it requires the airlines to develop their own products so that customers could have a choice, the products are driven by prices charged and revenue gains and allow market demand to drive price,” Sir Joseph said.
“Price control of airfares should not be arbitrarily determined on the basis of averaging costs for passenger and freight uplifts for different types of aircraft,’’ he said.
He said the Government should work towards improving CAA administration and aviation infrastructure to ensure growth in the areas of tourism.
“Keep the Open Sky policy but manage it on a level playing field. Airfares, both international and domestic, must remain subject to market forces, determination and demand.
“I believe greater working relationship needs to be established between tourism and airline operators.
“I believe that the visa requirements need to be reviewed to allow in tourists with 30-day genuine stay in the country.”
Sir Joseph said selective rural airports be handed back by provincial governments and managed by CAA to allow tourists to decide the place they want to visit in PNG or alternatively, seek subsidy funding from National Government for selected provincial airport improvements.
What thinks ye?
EM TV news last night also reported that there are plans to introduce a separate organisation to takeover control and management of ATC and airports (maybe not unlike the old FAC in Oz?).
The 'National' had this to say after yesterday's ICCC's ATI hearing in Moresby:
By ISAAC NICHOLAS
AIRFARES for both domestic and international flights must remain subject to market forces, civil aviation expert Sir Joseph Tauvasa said yesterday.
Sir Joseph, a former head of Air Niugini and a director on the Civil Aviation Authority, warned that a return to the price control regime on airfares would force airlines to review their operations.
He said the airlines may be forced to omit unprofitable routes, use aviation charters to earn revenue and enter into short-term price wars to maintain market share that may force shortcuts to service and ultimately, running the risk of unsafe operations.
“I was there. I regulated the price as director of Civil Aviation once upon a time, and it’s very difficult to do that.”
Sir Joseph was speaking at the public hearing reviewing the air transport industry (ATI) in Papua New Guinea at the Crowne Plaza Hotel in Port Moresby yesterday.
Sir Joseph said the Open Sky policy had not seen entry of international planes into PNG’s domestic aviation but there was likelihood of entry of new operators to offer competition to the established operators like Air Niugini and Airlines of PNG.
He said reductions should not be enforced by price control as it would be counter-productive, given similar situations around the world including the bankruptcy of Italia, the national airline of Italy and smaller operators in PNG including Talair and Douglas Airways because of very stringent regulations by the authorities
He said airlines operators in PNG had the freedom to enter into co-share arrangements with international operators to establish competition and offer choices of goods and services to the travelling customers including tour operators.
“PNG aviation remains small and it requires the airlines to develop their own products so that customers could have a choice, the products are driven by prices charged and revenue gains and allow market demand to drive price,” Sir Joseph said.
“Price control of airfares should not be arbitrarily determined on the basis of averaging costs for passenger and freight uplifts for different types of aircraft,’’ he said.
He said the Government should work towards improving CAA administration and aviation infrastructure to ensure growth in the areas of tourism.
“Keep the Open Sky policy but manage it on a level playing field. Airfares, both international and domestic, must remain subject to market forces, determination and demand.
“I believe greater working relationship needs to be established between tourism and airline operators.
“I believe that the visa requirements need to be reviewed to allow in tourists with 30-day genuine stay in the country.”
Sir Joseph said selective rural airports be handed back by provincial governments and managed by CAA to allow tourists to decide the place they want to visit in PNG or alternatively, seek subsidy funding from National Government for selected provincial airport improvements.
What thinks ye?
EM TV news last night also reported that there are plans to introduce a separate organisation to takeover control and management of ATC and airports (maybe not unlike the old FAC in Oz?).