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Air Niugini's subsidiary - LINK PNG

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Air Niugini's subsidiary - LINK PNG

Old 29th Apr 2020, 07:00
  #1521 (permalink)  
 
Join Date: Jul 2010
Location: Asia
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Hear that PNG have fared well with the virus with just a handful cases.
PNG is pretty isolated and doesn't receive many international visitors, once in the country it's not that easy to travel between towns and cities so they may have been lucky. However with the state of the health system they wouldn't know about it anyway. Hopefully a Chinese businessman didn't infect a hotel worker who went out to a bar and infected his friends, fingers crossed the virus stays out of the slums of Moresby and Lae.
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Old 29th Apr 2020, 11:24
  #1522 (permalink)  
 
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Testing or a lack of will be a problem in determining the true Corona count in PNG, I fear that if it grabs hold there it could spread like wild fire as social distancing could proof difficult in a village environment.
There is also the problem of spitting Buai which will help the spread.
Fingers crossed for PNG this does not happen.
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Old 29th Apr 2020, 13:04
  #1523 (permalink)  
 
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The latest from PNG Air:

https://postcourier.com.pg/png-air-s...inst-covid-19/
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Old 28th Jun 2020, 09:15
  #1524 (permalink)  
 
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TO ALL STAFF

PNG AIR TO REMAIN INDEPENDENT

Link PNG confirmed last month its bid to acquire an interest in PNG Air, in a move that will benefit Papua New Guinean Nationals and travellers.

Link PNG General Manager Alex Kia advised that the transaction is based on PNG Air remaining as a stand-alone airline that will price and sell its own tickets separately from Air Niugini.

Mr. Kia noted “Its is absolutely our intent that PNG shall continue to have two separate airlines, PNG Air and Air Niugini, and that there will continue to be a strong, competitive domestic market with options for travellers”. Link PNG intends that this will be achieved by means of a joint operating agreement between the airlines, which will ensure that PNG Air continues to service its customers under its existing brand and at its own prices. Cabin crew, sales staff and check-in staff will remain in PNG Air uniforms, and PNG Air's aircraft will remain in PNG Air livery. PNG Air and Link PNG will have separate sales and marketing functions, while still achieving the operational cost savings that will enable a stronger and more dynamic airline industry in PNG over the longer term.


Mr. Kia noted the key synergy benefits come from back office functions that can be more efficiently managed across the two airlines, and from a more efficient use of the two fleets. He stated “We believe there is a compelling case for creating a stronger, stand-alone PNG Air, across a wider network, as well as ensuring job security, and certainty for the travelling public. We will also ensure the savings created will be passed back onto our customers.”

Link PNG said it is committed to ensuring more affordable airfares; with the lower prices resulting from economies of scale and through the considerable cost efficiencies that are available.

Mr Kia noted the joint operating arrangements will allow aviation to survive COVID-19, and emerge from the other side as an even larger contributor to PNG’s economic growth and living standards by driving lower airfares and achieving sustainability.

Link PNG requires all regulatory and shareholder approvals, including from ICCC, before the joint venture is finalised.

Alex Kia
A/General Manager Link PNG
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Old 28th Jun 2020, 22:43
  #1525 (permalink)  
 
Join Date: Apr 2002
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In the above case, Link PNG (ANG) buying PNG Air would be like QANTAS buying Virgin and then both competing against each other in the same market...doesn't make much sense to me.
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Old 30th Jun 2020, 10:53
  #1526 (permalink)  
 
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https://postcourier.com.pg/airlines-...tcy-says-maru/

Post Courier - 30th June 2020.
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Old 30th Jun 2020, 11:32
  #1527 (permalink)  
 
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If international travel restrictions continue for an extended period of time, based on what is happening elsewhere around the world, no PNG airline is immune to bankruptcy in these challenging times. The PNG domestic market isn’t sustainable at the best of times, let alone in COVID-19 times.

One only needs to look at the airline casualties in neighbouring South Pacific countries including Australia to make a reasonable comparison of ANG and PNG Air’s long term viability.

Unless ANG and PNG Air are operating their aircraft on coconut oil and bui husks, I cannot see how any investor including the PNG government are going to be able to keep injecting cash into these airlines to keep them going in the interim.



Last edited by Duck Pilot; 30th Jun 2020 at 13:03.
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Old 30th Jun 2020, 12:58
  #1528 (permalink)  
 
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Sad times for PNG aviation.
ANG will survive, the alternative is too frightening to imagine. Australia will prop up the Airline system in PNG in the form of an Aid programme (I hope) for I fear the alternative is Chinese money and a fleet of E190-E2's
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Old 30th Jun 2020, 13:20
  #1529 (permalink)  
 
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Australian government to assist??? I’ve heard that assumption before.....

Any long term reasonable foreign investment would probably be welcome for anything in PNG right now I’d imagine.


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Old 30th Jun 2020, 22:34
  #1530 (permalink)  
 
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Originally Posted by Kagamuga View Post
Sad times for PNG aviation.
ANG will survive, the alternative is too frightening to imagine. Australia will prop up the Airline system in PNG in the form of an Aid programme (I hope) for I fear the alternative is Chinese money and a fleet of E190-E2's
Yes it is a tough time and no doubt ANG will be bleeding profusely on the international fleets. The Fokker, with its ability to carry both passengers and freight into many domestic PNG ports could easily become the "breadwinner" with the Dash 8 not far behind. Though it's freight carrying capacity is less. So far there hasn't been any culling of crews, but with the downturn in the international flying, its probably inevitable.

PNGAir are history, they were pretty well that before all this happened. So unless someone springs them a whole heap of cash, you won't see them around much longer.

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Old 30th Jun 2020, 23:43
  #1531 (permalink)  
 
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PNGAir are history, they were pretty well that before all this happened. So unless someone springs them a whole heap of cash, you won't see them around much longer.
So PX is going to buy out the National Superannuation Funds (NASFUND) 40% share of PNG Air, but at what value.

NASFUND has reportedly invested some 76 Million Kina ($31 Million Aus )into the airline since it listed, but the last sale on "who knows when" was 12 Toea (5 cents) - somewhat down from the initial 1 Kina listing price. (What do they say about making a fortune in Aviation?)

For ANG's sake hope the arn't expected to pay the full 76 Mill.



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Old 1st Jul 2020, 00:03
  #1532 (permalink)  
 
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In regards to PNG Air, I think Duck Pilot has eluded before that he works for them, or is close to a reliable source. Be guided by Duck's comments as being a true picture...

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Old 1st Jul 2020, 01:02
  #1533 (permalink)  
 
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ANG will be propped up by Australian Government's annual donation via foreign aid as in the past.
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Old 1st Jul 2020, 01:16
  #1534 (permalink)  
 
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Like most airlines in the world, ANG will find a big difference in their short haul narrowbody and long haul widebody fleets. The Fokker is a PMV with wings and versatile enough to justify being kept on for essential domestic and regional connectivity. The B737 has longer legs and the - 700 could probably replace the B767 on all its current routes. Widebodies are expensive to operate, and will be difficult to fill in the short to medium term. I wouldn't be surprised if the B767s end up being grounded as they will simply be losing money that the airline doesn't have. Once things settle down, any surplus Fokkers could be leased to Alliance for a couple of years until demand picks up again which would be a win/win for both operators.
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Old 1st Jul 2020, 01:29
  #1535 (permalink)  
-41
 
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Originally Posted by INTERESTED BYSTANDER View Post
ANG will be propped up by Australian Government's annual donation via foreign aid as in the past.
Sir Kostas can have a chat with MP Michael McCormack, he is good for at least $54million to foreign owned entities.



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Old 1st Jul 2020, 02:02
  #1536 (permalink)  
 
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Kostas got himself a very discounted APEC pre-loved surplus Bentley....
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Old 1st Jul 2020, 02:26
  #1537 (permalink)  
 
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The 767 is just a freighter that’s got a few seats. They never flew full. Every time I went to SIN on the 767 there was about 30pax total, even down to BNE there was usually under 100 pax. It makes money from freight, so they will stick around over the 737.
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Old 1st Jul 2020, 07:06
  #1538 (permalink)  
 
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Depending on how the figures turn out, they could be better off replacing the B767s with dedicated B737 freighters and running cargo only flights on certain routes in addition to pax B737 flights. This would give them a bit more flexibility as the B737 is easier to fill, frequency could be increased and destinations combined into a single run eg Hong Kong stops in Manila on the way back to Moresby. ANG is already a B737 operator and retraining B767 pilots wouldn't be a problem.

Obviously everything depends on future demand, if the B767 is full of freight on all its routes and can still make money with mostly empty seats in the cabin, they will probably be kept on.
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Old 1st Jul 2020, 09:47
  #1539 (permalink)  
 
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With the changed circumstances, the B737 would be a good fit as the Fokker hasn’t got the range for the longer routes and the B767 is too big. There will be plenty of attractive offers for leases available given the large number of 73s sitting on the ground. In 2-3 years time wide body flying may be profitable, possibly with the B787 instead.
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Old 2nd Jul 2020, 04:39
  #1540 (permalink)  
 
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Hearing that the 737 Expat pilots have been told to either take indefinite leave without pay, or pay in lieu of termination notice.

Sounds like Chazwazza14 is correct.

Got to pay for a 40% holding in the other company somehow so as the Superannuation fund can get some of its money back. That's the trouble when a Government owns an airline, they say what to do and the Management can only say yes sir.




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