Wirraway
25th Nov 2002, 02:31
AAP
PNG airline to raise fares 20 per cent
November 25 2002
Papua New Guinea's government airline Air Niugini is to increase fares by up to 20 per cent before Christmas.
The major hikes are expected to have a devastating impact on the impoverished nation of five million.
Air Niugini said international airfares will rise by 20 per cent on December 2, while domestic airfares will increase by 17 per cent on November 28.
The major hikes follow a 7.5 per cent increase in August as PNG's currency started to slide.
The hikes push the cost of a return economy ticket between Sydney and Port Moresby to more than 3,400 kina ($A1,200).
An average shop assistant earns just 40 cents per hour.
Commentators said the increases would prompt "uproar" if proposed in a wealthy country such as Australia, let alone in PNG.
"For it to occur in Papua New Guinea, already brought to its knees by horrendous exchange rates and a pitiably unrealistic wage structure, is bluntly unacceptable," The National newspaper said in its editorial.
In years gone by the average Papua New Guinean working in the city has been able to afford a trip home to the village every two years.
"But in today's desperate economic climate, few families can afford to put enough food on the table, let alone fly," the newspaper said.
Government hopes of selling off the troubled airline were dashed last year for lack of interest.
The government still hopes to sell the airline and allow it to buy newer aircraft and more spare parts.
Recent falls by the kina have dramatically increased the cost of living in PNG.
A balance of payments crisis is expected within months.
AAP
PNG airline to raise fares 20 per cent
November 25 2002
Papua New Guinea's government airline Air Niugini is to increase fares by up to 20 per cent before Christmas.
The major hikes are expected to have a devastating impact on the impoverished nation of five million.
Air Niugini said international airfares will rise by 20 per cent on December 2, while domestic airfares will increase by 17 per cent on November 28.
The major hikes follow a 7.5 per cent increase in August as PNG's currency started to slide.
The hikes push the cost of a return economy ticket between Sydney and Port Moresby to more than 3,400 kina ($A1,200).
An average shop assistant earns just 40 cents per hour.
Commentators said the increases would prompt "uproar" if proposed in a wealthy country such as Australia, let alone in PNG.
"For it to occur in Papua New Guinea, already brought to its knees by horrendous exchange rates and a pitiably unrealistic wage structure, is bluntly unacceptable," The National newspaper said in its editorial.
In years gone by the average Papua New Guinean working in the city has been able to afford a trip home to the village every two years.
"But in today's desperate economic climate, few families can afford to put enough food on the table, let alone fly," the newspaper said.
Government hopes of selling off the troubled airline were dashed last year for lack of interest.
The government still hopes to sell the airline and allow it to buy newer aircraft and more spare parts.
Recent falls by the kina have dramatically increased the cost of living in PNG.
A balance of payments crisis is expected within months.
AAP