PNG Air in Port Moresby - need assistance
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PNG Air in Port Moresby - need assistance
Rumors circulating since late yesterday..
The #2 airline in PNG with ATR-75-600's and a very old fleet of Dash 8's is not travelling to well.
The Chief Executive Officer, has been replaced.
Safety Manager departed,
Commercial manager apparently resigned
Press release on FaceBook page which is a few days old mentions issues.
Key people missing will be of interest to CASA PNG
The #2 airline in PNG with ATR-75-600's and a very old fleet of Dash 8's is not travelling to well.
The Chief Executive Officer, has been replaced.
Safety Manager departed,
Commercial manager apparently resigned
Press release on FaceBook page which is a few days old mentions issues.
Key people missing will be of interest to CASA PNG
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Rumors circulating since late yesterday..
The #2 airline in PNG with ATR-75-600's and a very old fleet of Dash 8's is not travelling to well.
The Chief Executive Officer, has been replaced.
Safety Manager departed,
Commercial manager apparently resigned
Press release on FaceBook page which is a few days old mentions issues.
Key people missing will be of interest to CASA PNG
The #2 airline in PNG with ATR-75-600's and a very old fleet of Dash 8's is not travelling to well.
The Chief Executive Officer, has been replaced.
Safety Manager departed,
Commercial manager apparently resigned
Press release on FaceBook page which is a few days old mentions issues.
Key people missing will be of interest to CASA PNG
From PNG Air's Facebook page
MEDIA RELEASE
BID TO ACQUIRE SOME OF PNG AIR BY LINK PNG - A TERRIBLE CHOICE
Thursday 28th May 2020
_____________________________________________
The decision by Link PNG Ltd, (subsidiary of Air Niugini Limited) to acquire some of PNG Air starts the creation of a monopoly of the airline industry in Papua New Guinea. It will be a terrible move which will be extremely detrimental to the travelling public of Papua New Guinea as there will be no competition.
In a monopoly, price of airfares will rise, efficiency will decrease and Link PNG through its Holding Company Air Niugini will have absolute power to dictate to the travelling public on how, when and where they will travel in the future. There will be no choice to the travelling public. There will also be no choice for businesses for their Charter and Freight.
Air Niugini has already lost over 15% of passenger Market share to PNG Air over the last few years. Our Freight Revenue has increased by 30% and Charters by 25%. PNG Air now has 50% of the market share and is at an even level playing field with Air Niugini.
Undoubtedly PNG Air has demonstrated an efficient, open, competitive operation to the Papua New Guinean public and businesses as seen by its increase in all areas of revenue generation and market share. Besides, its fares are an average of 10% lower than that of Air Niugini where the public has gained because of open market competition.
This intended merger is therefore nothing but a way for Air Niugini to claw back market share in
a purely easy self-interest manner and without due regard for competition which is detrimental to the interest of the Papua New Guinean people who wholly own PNG Air Ltd.
PNG Air questions Link PNG Ltd’s intention to even be part of PNG Air as a conflict of interest may arise if it so happens. Jobs will definitely be lost both in Port Moresby and at out ports if this was allowed to go ahead because of consolidation. Departments will merge, outports will close and other operations will merge. Relying on a single airline in a country like Papua New Guinea for much needed air travel is not advisable and can cause huge issues should this single airline fail to deliver.
Other shareholders of PNG Air and the PNG Air Board were neither contacted nor consulted by Air Niugini regarding this move which may breach Corporate Governance and Listing Rule proticals. There is no merger as they suggested which is misleading the travelling public. PNG Air is operating with a strong well qualified team of Executives, Pilots, Engineers and other dedicated staff and a strong Board of Directors.
PNG Air is a private company wholly owned by Papua New Guineans. It goes to more destinations than Air Niugini with 2 additional destinations to come on board. It has a young and modern fleet of ATR aircrafts and over 80% of pilots and first officers are Papua New Guineans.
PNG Air is on the verge of releasing its Strategy Plan to move forward post Covid-19 to ensure that a milestone of paying Shareholders a dividend is reached while continuing to maintain Safety as its No 1 priority and look after its travelling public no different to what it has done in the past.
For now it is business as usual at PNG Air Limited.
ENDS...//
BID TO ACQUIRE SOME OF PNG AIR BY LINK PNG - A TERRIBLE CHOICE
Thursday 28th May 2020
_____________________________________________
The decision by Link PNG Ltd, (subsidiary of Air Niugini Limited) to acquire some of PNG Air starts the creation of a monopoly of the airline industry in Papua New Guinea. It will be a terrible move which will be extremely detrimental to the travelling public of Papua New Guinea as there will be no competition.
In a monopoly, price of airfares will rise, efficiency will decrease and Link PNG through its Holding Company Air Niugini will have absolute power to dictate to the travelling public on how, when and where they will travel in the future. There will be no choice to the travelling public. There will also be no choice for businesses for their Charter and Freight.
Air Niugini has already lost over 15% of passenger Market share to PNG Air over the last few years. Our Freight Revenue has increased by 30% and Charters by 25%. PNG Air now has 50% of the market share and is at an even level playing field with Air Niugini.
Undoubtedly PNG Air has demonstrated an efficient, open, competitive operation to the Papua New Guinean public and businesses as seen by its increase in all areas of revenue generation and market share. Besides, its fares are an average of 10% lower than that of Air Niugini where the public has gained because of open market competition.
This intended merger is therefore nothing but a way for Air Niugini to claw back market share in
a purely easy self-interest manner and without due regard for competition which is detrimental to the interest of the Papua New Guinean people who wholly own PNG Air Ltd.
PNG Air questions Link PNG Ltd’s intention to even be part of PNG Air as a conflict of interest may arise if it so happens. Jobs will definitely be lost both in Port Moresby and at out ports if this was allowed to go ahead because of consolidation. Departments will merge, outports will close and other operations will merge. Relying on a single airline in a country like Papua New Guinea for much needed air travel is not advisable and can cause huge issues should this single airline fail to deliver.
Other shareholders of PNG Air and the PNG Air Board were neither contacted nor consulted by Air Niugini regarding this move which may breach Corporate Governance and Listing Rule proticals. There is no merger as they suggested which is misleading the travelling public. PNG Air is operating with a strong well qualified team of Executives, Pilots, Engineers and other dedicated staff and a strong Board of Directors.
PNG Air is a private company wholly owned by Papua New Guineans. It goes to more destinations than Air Niugini with 2 additional destinations to come on board. It has a young and modern fleet of ATR aircrafts and over 80% of pilots and first officers are Papua New Guineans.
PNG Air is on the verge of releasing its Strategy Plan to move forward post Covid-19 to ensure that a milestone of paying Shareholders a dividend is reached while continuing to maintain Safety as its No 1 priority and look after its travelling public no different to what it has done in the past.
For now it is business as usual at PNG Air Limited.
ENDS...//
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Not sure about MCM and MCP but I do know that MCT ended up in Perth with Maroomba, last time I was there I saw it awaiting an Aussie paint job.
MCM and MCP were pretty old if I remember rightly but were sold to a leasing company and then leased back as airlines of PNG raised cash before it moved to ATRs
PNG Air seem to be struggling now as are all the airlines around the world. Looks as though the inevitable will happen and they will be absorbed into Air Niugini. Really this is the only way that a sustainable air service can be sustained in a bankrupt, (in many more than one ways than one), country.
Good luck Wantoks.
and where are Bruce and Andy?
MCM and MCP were pretty old if I remember rightly but were sold to a leasing company and then leased back as airlines of PNG raised cash before it moved to ATRs
PNG Air seem to be struggling now as are all the airlines around the world. Looks as though the inevitable will happen and they will be absorbed into Air Niugini. Really this is the only way that a sustainable air service can be sustained in a bankrupt, (in many more than one ways than one), country.
Good luck Wantoks.
and where are Bruce and Andy?
Last edited by Cravenmorehead; 31st May 2020 at 08:23.
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You're right!! MCI is indeed with Maroomba. I should have checked Airliners site before I posted. MCM has been scrapped and MCP is still listed as active according to this site.
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Found the web site
Pics (March 2019) show MCP as essentially scrapped, engines and leading edges removed. MCM shown as intact,
Pics (March 2019) show MCP as essentially scrapped, engines and leading edges removed. MCM shown as intact,
MCP is being scrapped, airframe apparently time expired. MCM was going to be put back into service, however the COVID - 19 crisis may have put that on the back burner.
With regards to the suggested merger, it may be the only life line that the airline has to survive unless another potential investor quickly shows interest. Regardless of what the ICCC’s decision is, there is a potential that Air Niugini may end up being the only domestic RPT operator in PNG once the dust settles. Bit of a catch 22.
With regards to the suggested merger, it may be the only life line that the airline has to survive unless another potential investor quickly shows interest. Regardless of what the ICCC’s decision is, there is a potential that Air Niugini may end up being the only domestic RPT operator in PNG once the dust settles. Bit of a catch 22.
Heard the same from a few reliable sources. In my opinion if they are to survive, the only option is to accept any buyer who wants to invest heavily. If that’s PX or the bui seller at Townsville Airport it doesn’t really matter.
Otherwise it’s going to end very quick.
Otherwise it’s going to end very quick.