Air Niugini's subsidiary - LINK PNG
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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.
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.
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.
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
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
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.
Any long term reasonable foreign investment would probably be welcome for anything in PNG right now I’d imagine.
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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.
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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.
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.
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...
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.
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.
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.
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.
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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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.
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.
Pax numbers on the 767 have been very low, when I bailed out of PNG in mid May I was the only pax on the flight to Brisbane. I doubt they had much freight underneath as it climbed like a home sick angel, pitty it didn’t keep going to drop me in heaven.....
Pretty weird flight, then to get met and greeted by police and troops to be escorted to a hotel for 14 days. A memorable experience, however very unpleasant!
Pretty weird flight, then to get met and greeted by police and troops to be escorted to a hotel for 14 days. A memorable experience, however very unpleasant!
Old news to some but this is an excerpt from a Memo issued on 24/4/20
AMENDMENT TO PILOT CONDITIONS
5) LEAVE WITHOUT PAY
Only after all annual leave, SDO's and long service leave for all pilots on the applicable fleet and rank have been exhausted will pilots be placed onto Leave Without Pay.
Air Niugini acknowledges the B737 fleet is the most underutilized fleet at present and hence the most likely to have this occur.
Air Niugini will endeavor to advise you by email at least 14 days prior to you being rostered onto LWOP should be have to get to this outcome
AMENDMENT TO PILOT CONDITIONS
5) LEAVE WITHOUT PAY
Only after all annual leave, SDO's and long service leave for all pilots on the applicable fleet and rank have been exhausted will pilots be placed onto Leave Without Pay.
Air Niugini acknowledges the B737 fleet is the most underutilized fleet at present and hence the most likely to have this occur.
Air Niugini will endeavor to advise you by email at least 14 days prior to you being rostered onto LWOP should be have to get to this outcome
Freight to SIN? Those Sings must sure love their buai.