Air Niugini to restructure to cut costs
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Air Niugini to restructure to cut costs
Air Niugini selling property portfolio, outsourcing ancillary services
By HELEN TARAWAAIR Niugini is undergoing a restructure exercise which includes the sale of its property portfolio and the outsourcing of its ancillary business operations, it has been revealed.
Kumul Consolidated Holdings Limited (KCHL) managing director Isikeli Taureka said it was part of a restructure plan for state-owned entities.
He told The National that the KCHL was working with the national airline on the restructure plan which included the sale of Air Niugini’s property portfolio.
“We are working on their restructuring plan,” Taureka said.
Ancillary business operations to be outsourced through the public-private partnership include catering, ground support, information technology, call centre and sales.
Taureka said it was part of the Government’s divestment programme.
“The programme was put in place to outsource non-core operations and reduce the cost base,” he said.
The airline in August laid off some workers because of the impact of the Covid-19 on its operations.
Air Niugini chief executive Bruce Alabaster said some of the company drivers were offered alternative employment with another company to provide bus services to airline staff.
The airline had paid them their redundancy entitlements.
Alabaster said Air Niugini acknowledged that the situation was unfortunate but its focus would always be on delivering safe and cost-effective air travel.
Mr. Update,
In several of your posts, you appear to quote media articles, but you don't state which ones.
Could you include the name of the media outlet in future. Thanks.
In several of your posts, you appear to quote media articles, but you don't state which ones.
Could you include the name of the media outlet in future. Thanks.
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