Air Niugini crewing problems .

[SHAGGS]

Pilot shortage affects Air Niugini.

How long is it going to take Air Niugini management, to work on a possible solution to resolve the ongoing problems with flight cancellations ? The main reason why flights are being cancelled is due to a chronic shortage of pilots. Over the past week or so the airline has cancelled an average of two flights a day, not to mention the delays. The other concerning thing is that the airline continues to check passengers in for flights that they are going to cancel, then have the passengers waiting in the departure lounge for hours before they decide to inform anyone.

Rumors are that there may be an impending national pilots strike on the horizon, over terms and conditions, not to mention that most of the expat pilots have issues with pay that aren’t being addressed. The airline can’t crew the aircraft they have, not to mention the additional aircraft they have coming on line over the next couple of months. The first thing that management want to do is align the national pilots terms and conditions up with the expats agreement. Management have also indicated that they may consider canceling tours for expats, if they decide to do this most of the affected pilots will inevitably resign. One possible solution to this would be to offer more basings offshore to expats and even nationals if required, and have the crews commute to Port Moresby.

What ever happens, management have to address this situation in a positive and effective way quickly, to make Air Niugini an attractive airline for pilots to fly for. The airline has a huge potential given the outlook in the associated recourses industries within PNG, if management can put a good and strong foundation in place for it’s existing and future employees. It might also be a good time for the airline to have another partner/s to get involved in the ownership and management of the airline, as at the moment no one seems to be accountable for anything.

[DingoMuddy]

This is just the tip of the iceberg. Seems to me that there are so many issues manifesting themselves that they just compound by the day. Everything is haphazard with no real longterm strategic direction. We got a problem today, throw another aircraft at it.

Under the current management and its overbearing & opaque management style, fawning to the Board, yet riding roughshod over the key lieutenants to the point where it is impossible to be upfront, nothing will change and soon it will be beyond fixing. Those who try to do something are quick to disappear from the scene or are removed. I hear that most of the Board know this, but choose not to confront the real issue. Back the man at any cost.

PX can be thankful that the economy is as buoyant as it is, and must now pray that it remains so for a long time to come as many of these acquisitions and long leases will start to look pretty sick if it doesn't.

By comparison, APNG's steady progress and clearly defined strategic direction is going to start looking very impressive in the not too distant future.

In the meantime, PX's patch work solutions will continue, so good luck all who really care.

[NDVP]

In the light of recent comment, it might be pertinent to look at a brief recent history of PX management.

During 2003 PX was in a poor condition. Under the leadership of the acting CEO at the time, Steve Wilks, a number of hard decisions were taken which included a 10% pay reduction for management. By the time Rod Nelson was appointed as CEO the recovery was under way, and through Rod’s guidance and the close co-operation of Joe Tauvasa’s board, the airline not only posted significant profits in 2004 and 2005, but cleared its outstanding debts to the banks. The airline at that time was seen as being more viable than at any other time in its history, and had a cohesive and experienced management team. Planning was going ahead for a refleeting program and the replacement of the leased 767 was already under discussion for 2008.

Towards the end of 2005, Joe Tauvasa was replaced as chairman by the government. Joe had over thirty years of airline experience stretching back to the days of TAA. He was replaced by Jim Tjoeng, a supermarket and biscuit manufacturing tycoon, who whilst perhaps being an astute businessman, had no aviation experience.

At Mr.Tjoeng’s first board meeting, the decision was taken to pay Rod Nelson out to the end of his contract, for “business reasons”. No other explanation was ever forthcoming, and the effect was to deprive the management team of his leadership as CEO. The acting CEO appointment was Wasantha Kumarasiri who was previously the CFO of Ela Motors. Again; no aviation experience.

Early in 2006 Graeme Hills, the General Manager Engineering and Neil Peterson, The Purchasing and Supply Manager, were terminated without warning. No explanation was given either to them or anyone else other than “business reasons”, At the time, the National reported that Mr.O’Neill had asked in parliament why the sackings had occurred. He did not receive an explanation.

Shortly after that the Treasury Manager, Kepas Rakop, was terminated. For “business reasons”.

During the second half of 2006 morale declined rapidly within PX. There was a general exodus of management, some for ”business reasons”, some because contracts were not renewed, and some because they could not come to terms with the executive management policies they were asked to implement. In the 18 months from Joe Tauvasa’s departure the airline lost: (not necessarily in date order):

Joe Tauvasa, Chairman
Rod Nelson, CEO
Graeme Hills, GM Engineering
Neil Peterson, Purchasing Manager
Kepas Rakop, Treasury Manager,
Simon Obi, GM Engineering
Ken Baxter, Director
Bernard Aka, Senior HR Manager
John Cappelletti, GM Flight Operations
John Salter, Aviation Security Manager
David Glover, Strategy and Planning Manager
David Tohi, QA Manager (returned on a consulting contract)
Darren Stocks, Sales Manager
Peter Hewett, Cargo Manager
Cathy Taukuro, IT Manager
John Smith GM Engineering
Bill Irons, Flight Catering Manager
Trevor Michie, IT Special Projects Manager (returned on a consulting contract)
numerous Licensed aircraft engineers
numerous pilotsWhen one considers that most of the above had at least twenty years experience, it is difficult to imagine the full impact of their collective departure in a very short time. It is worth noting that there are three GM Engineering on the list, all well qualified and either terminated or resigned before the recent appointment of the incumbent. It would be interesting to know how many of the current holders of senior positions named in the company exposition have sat the CAA “fit and proper person” examination under Civil Aviation Rules Part 145.51

Air Niugini has a safety record second to none in the world. There are very few flag carrying airlines that can boast thirty years operations without a single fatality in flying conditions as difficult as those in PNG. I, along with many others, am proud of that record, and I believe that the CAA must be tasked with looking carefully at the concerns of the engineering staff before that record is unhappily spoiled.

The “new” flagship 767, which has so far sat idle for three weeks has a varied history. It is 19 years old which by international airline standards is very long in the tooth. The aircraft (manufacturers serial number 24541) has a varied history with assorted African airlines, including a heavy landing at Harare in Feb 2000 (registered as Egypt Air SU-GAO) which ripped off the starboard engine and collapsed the nosegear.

There are other facts to consider. Throughout late 2006 and 2007 the PX schedule was patently unreliable, and it has not improved much lately. They are still unable to cope with domestic cargo, there is an embargo on various ports, all for reasons that an experienced management would have either foreseen or pre-empted. During the worst period Tjoeng and Kumarasiri received a knighthood and a CBE respectively. What for?

In the words of the song, "There are more questions than answers".

[DingoMuddy]

NDVP,
Pretty well said and a quite accurate portrayal of events.
Think you can add to the list above as follows:
Rei Logona GM Service Delivery
Jeff Murdoch GM Marketing
Gerry Hudson Schedules & Planning
Gus Kraus Business Development Mgr / Cargo Mgr / Dep GM Marketing
Victor Leong GM Finance (6mths)
+ an acting Maintenance Mgr whose name escapes me and who was effectively deported under instruction from the CEO with no explanation given.

Don't think there would be too many kind words spoken by any of the entire list about the current CEO.

[NDVP]

DingoMuddy,

Thanks, they should have been on the list. I think the acting maintenance manager you refer to was Shanker (the other name escapes me) who was hired from Airod in KL and got into strife with Customs for bringing in a number of expensive but undeclared personal items on a ferry flight.

To the best of my knowledge the government injected a capital sum of around K35M in the 2006 budget to assist PX in the refleeting of F100 and DHC-8-300 aircraft. I believe that a number of aircraft were purchased at above the recognised market price. I am informed that $8.2M US was paid for a 1995 built Dash 8 -300. I do not have blue-book access but from experience I suspect that is excessive, particularly as there were 32 defects noted on the initial survey? These included damage to all passenger seats, delaminated panels, damaged skins, oil leaks etc. Also, 27 rotable components were listed as not having serviceability certificates, including the flight guidance computer, air data computer, and data acquisition unit. The overall picture is of an aircraft that has been poorly maintained.

The 767 replacement has been handled badly. In early 2006 PX had the opportunity to retain and, if desired, refurbish the existing ANG aircraft or to acquire a 2000 build ex NZ aircraft, which would have been costly but justifiable given the airline’s performance and financial integrity at the time. Instead, all the eggs were put into the Brunei basket with its long drawn out abortive negotiations. Lack of experience?

The capital cost of the much vaunted B787 will probably break PX. They have little or no expertise in the purchase of new aircraft. I wonder what discount to list PX achieved, and what delivery position they have managed to secure.

[HANOI]

NDVP
An excellent summation of events , past and present.
Will the full story ever come out?.

[DingoMuddy]

NDVP,

Yes, it was Shanker whose name I could not recall. Not aware of any customs issue being involved, though I do recall a couple of tech crew being caught out with goods being brought in on a ferry service. Think Shanker was done for standing up on a particular issue and following on from a confrontation with the CEO, he found himself being frog marched off the premises and detained by PX security at his apartment before being put on the SIN service the same day.

Am very aware that the Canadian would appear to be complicit in a whole range of issues surrounding the acquisition of several aircraft. Believe the CAA safety regulator conducts "fit & proper persons" assessments in key positions within PX including GM Engineering & Maintenance Mgr roles. I hope this is a thorough process????

Most distasteful the deeper you dig!

[SIUYA]

NDVP and Dingo........

PNG AC 119-1

EM 119.51 Personnel Requirements

119.51(a)(1)
The Chief Executive must also be assured that the operation is conducted in compliance with the exposition. Ensuring compliance with the exposition is the responsibility of the senior persons under rule 119.51(a)(2) and the assurance that the Chief Executive requires could be shown through the medium of the internal audit reports or inspections. This person (the CEO)will need to demonstrate during initial application and at any other time, that they have the knowledge to control the organisation.

Perhaps the concept of 'control the organisation' is a little bit misunderstood by the CAA? :ooh:

[BPA]

I applied to them early this year after they advertised for pilots, I have over 500 hours on type and never heard a thing. I followed up with 3 emails and still nothing! So I guess they aren't to concerned about lack of pilots.

[NDVP]

Siuya,

I suppose if you replace all the senior persons with "yes" men or wantoks, then you DO "control the organisation" ............................

[SIUYA]

NDVP...........

Right on, by the sounds of things (unfortunately) :{

[Bozzo]

Oh how the above story resonates throughout the Pacific (and Africa). A dollar for each time the above has occurred would almost keep in beer for life.

[Heavy Cargo]

How is the new B767 running. Any CNX flights POM BNE yet ? Seems to have a busy schedule ?

[SHAGGS]

The people who are "trying" to keep the airline safe and efficient are the flight crews. The company can be blessed that they have/had some very good check and trainers to keep flight standards at a very high level. Every other department seem to be there for the ride. Like any aviation company in PNG, in country experience is what's important and this is what Air Niugini management fail to recognise. Had to have a laugh when I saw in last months Paradise inflight magazine, where they had published a story on some of Air Niugini's ex national pilots flying for other airlines in the Middle East, obviously no one in management understands why these pilots really left.

[tinpis]

I am curious as to where and how PNG locals attain/fund an ATPL license?

[SHAGGS]

PX short of pilots, says CEO

AIR Niugini has admitted the “root cause” of frequent cancellation and delaying of flights is the shortage of pilots.
It has also admitted the shortage of pilots is due to wage disparities between national and expatriate pilots as well as its policy on promotion, which is restricting expatriate pilots from being promoted to flying large aircraft.
Thus, both national and expatriate pilots are leaving the airline.
Air Niugini chief executive Wasantha Kumarasiri yesterday said Air Niugini had lost nine of its pilots (two nationals and seven expatriates) to overseas-based airlines since January.
He said the flight cancellations and delays were very much happening to its Dash-8 operations.
“Yep! That’s true, we are losing pilots,” Mr Kumarasiri said. “Since January this year, nine pilots have resigned. They have all gone to overseas countries.”
While he maintained that flight cancellations and delays were industrial issues and that the issue of pilot shortages was now a worldwide phenomenon, he said Air Niugini had not cancelled its flight to the extent where other third-level operators had been cancelling their flights.
“We’ve lost both Papua New Guineans and expatriate pilots. Papua New Guineans … more due to pay issues. Expatriates … more due to promotional opportunities restrictions because it’s every pilot’s dream to fly a bigger aircraft. With any pilot joining Air Niugini, they start on the smallest plane and get promoted through the ranks,” he said.
Air Niugini has a promotion policy where any pilot that joins the airline has to first fly a small aircraft and then get promoted through the ranks.
“If we can’t make a promotion due to internal policy issues, they (expatriate pilots) will look for other airlines,” he said.
“Air Niugini management has had discussions with the pilots union (and) we’ve almost confirmed everything we will do to address both (pay and promotion) issues.”
Asked for how long had there been a disparity between expatriate and national pilots wages, Mr Kumarasiri said: “Since the inception of this airline.”
Asked if more national pilots were expected to leave the airline, he said: “I don’t expect so. I believe that some employees do have some positions secured but I believe they are reconsidering their positions.”
Industry sources are also angry over the wages disparity, claiming expatriate pilots are paid about $A115,000 to $A130,000 a year while national pilots are being paid K115,000 to K125,000 a year.
But Mr Kumarasiri said: “Everyone is paid in PNG kina but their contracts may be denominated. This is the practice around the world, it’s not unique to Air Niugini.”
On Monday, Airlines PNG, who vowed publicly to compete with Air Niugini, said they were paying their national and expatriate pilots equally.
“We do offer the same salary packaging for our national pilots as we do with our expatriate pilots because Papua New Guinean pilots are highly skilled and highly marketable,” APNG managing director John Fitzger-ald said.

[Captain Nomad]

he said Air Niugini had not cancelled its flight to the extent where other third-level operators had been cancelling their flights.


Pray tell - WHAT other third-level operators is he talking about?! To my knowledge, the only companies providing an RPT service in PNG now are APNG and PX! :confused:

[Wings Of Fury]

Can anyone tell me if PX is still leasing an A310? or what happened to that idea?

Thanks,

[Traffic]

I think the correct acronym is TANGFU

[LVDT]

I understand the #2 in charge of airworthiness; Manager of Maintenance Control suddenly departed Air Niugini last week?

[tail wheel]

Thread returned.

Tail Wheel

[palebird]

Yes he did. My understanding is that there were pay and expense issues...