APNG Issues?
 

So some happennings are as follows;

Around 6 or 7 "A" scale captains have been made redundant in the last 4 weeks. These guys are long serving guys, experienced pilots, that are now being deemed too 'expensive' so are being let go. They are not being offered lesser contracts. This is a disgrace.There are guys now with commands on the Dash 8's that used to be until recently FO's on the Otters. These guys have the absolute minimum requirements but come at absolute minimum wages. Experienced pilots are now deemed to be bad for business.

The Otters have been binned, sitting idle and have weeds growing up and around them.

The Dash 8's are in a constant state of repair and some pilots tell me 'falling apart', in their words.

I hear they have gotten rid of around 20 engineers recently, and they were the good ones.

One of the Board has pulled the pin. The Board member has never been known to stick around long if the company he is involved with is a basket case.

The CAA is oblivious to the whole charade and turning a blind eye. Interesting though that a potential 'merger' is back on the cards again.

My sources tell me that the CP and CEO have transferred the 'skills' they had at Skytrans into APNG and the past 12 months has seen in a decline in moral. It seems the MD has embarked on yet another 'profits' driven cost cutting exercise without thinking about the end results. And you wonder why the company has so many issues.
Good luck to the boys and girls up there, tough times ahead.

CJ,

Interesting. I has heard that PNG CASA has just renewed their AOC for another 2 years. Also hear they have just signed up for 12 brand new ATR-72-600's, as well as paying the deposit for all 12.

Certainly in my part of PNG times are very quiet and the Kina has tanked, so perhaps they are just doing what Qantas and everyone else around is also doing and making sure they remain profitable.

APNG Issues?
 

"...and the sackings shall continue until morale improves!"

Cactus you sound very much like a reporter or a troll just trying to fish info out. Maybe some truth to your statements but stinks of troll.

sackings and signed contracts and deposits payed for 12 ATR 72's....... nothing adds up and it aint rocket science

I call rubbish to most of this.

My friends at ATR haven't received the 12 airplane order yet!

vee tail, thanks for the laugh! I think you need to get your facts correct. There are two confirmed ATR's coming, not 12. As for the money, most of that is coming from the sale of 6 Dashies at it's sister company.

Cactus you are the one with mach that are posting the facts, i'm just calling bullsh%t

Cactus you really do hate the Wild Group don't you. The sad thing is you are pretty much spot on.
Let's hope they can pull themselves out of it-mire ,crap, for the pilots and PNG's sake.
The ATR's will happen, eventually, but then again they couldn't get a Cessna Citation on the register. But have Tropic Air got theirs up and going yet?
Difference is one is a charter organisation the other supposedly an Airline.
Gotta watch what you say on this site as I know they all monitor it.
Oh well gotta go organise my undies drawer.........

I have it on very good authority that APNG have lost a number of big contracts (mining companies) that the Twotters were used to service and now they have no use for them so have/are selling them off.

Many pilots getting the 'move along' orders and the ones that were lucky enough to stay are getting upgrades to the Dash.

APNG seem to be in a bit of a restructure stage, trying to stem the bleeding as they say.

Most of the companies real income came from the mining contracts. It generally was paid in currency other than Kina. Subsequently lose those contracts or they scale down (the ones you have got), meanwhile trying to compete on the RPT market against a government run, owned and funded airline and you have problems. Exacerbating that the Kina has dropped and other currencies appreciated against it=cash flow problems. Also you have an ageing fleet and a lack of everything particularly skilled engineers and parts, the engineers that are any good are overworked.
Then you have the logistical problems associated with PNG and well I'm glad I don't own the Airline. Ulcer city.
Most of the airframes have been sold and leased back. This presumably to raise cash for ongoing operations or pay down debt or to fund the leases on the ATR72.
The ATR72 will be for the only good contract they have left Exxon Mobil which will probably be due to commence in May 2015. They have signed a letter of intent on an ATR72 airframe or airframes, who knows how many. I believe the intention is to re-fleet with ATR's.
Tough times ahead for the boys and girls and a few more tears I suspect but a plan has been put in place and they are working to it.
CHEers.
Oh did I mention a board who want a return on the investment made when the Airline listed on the Pomsox.

Interesting. If this is truly the case I wonder why the CAA aren't all over them for this? Didn't APNG just have its AOC ratified for another 2 years?
A lot of what is being quoted has coincidentally started happening ever since the ex Skytrans CEO took over the helm last year! Now Toomey may have left 'large shoes' that needed to be filled, but perhaps the current little CEO's feet truly don't fit the shoes so to speak? I mean Toomey had large airline experience, and went back to a large airline, but the current APNG CEO, well..........that's a different story :=

Of course that's what they want, but it doesn't appear like the current CEO is capable of delivering on that does it?
Groundhog Day? Dejavu? Karma? Who knows, but all you need to do is look at some of the current senior managemt structure and then take a look at what they left behind in Australia and you may just have yourself an answer?

Perhaps what is needed is for the Schoolteacher to come over and use one of her companies to teach management some mumbo jumbo (at a tidy fee of course!)?

ret sabala is interesting spelt backwards!

We carry 101 Airline "plates" we can issue tickets through IATA/BSP on and for a time carried the CG plate.

It was used several times but subsequently disappeared within the last 12 months.

Shame that as I have had quite a bit of traffic out of POM over the last month or so and CG was pricing better than most on more than one occasion.

That is revenue lost and to me it would seem to indicate bean counters pulling in every little cost despite losing traffic by doing so.

I could probably have booked via their website but that gives me uncertain control of the ticketing and dubious ability to modify the booking while my client is on the roll.

In the end Pixie got the business which I in no way begrudge but I would have liked to be able to offer my client the cheaper option and support the little guy. East-West syndrome I guess.

Accountants logic when under stress is not always logical.

best all

EWL

CG101/100 became unviable when Qantaslink began operating Cairns to Port Moresby return AM and PM services, effectively putting an extra 280 seats a day into the market.
It made sense to roll over on that route and concentrate on the domestic operation in PNG.
Then the company only ran the service on a Friday evening Pom to Cairns to bring staff home for the weekend and returned on Saturday mostly empty except for a few hapless crew a bit of freight and a few passengers. On Sunday evening it returned to Cairns in much the same fashion to operate back on a Monday morning with the managers and crew to operate out of Moresby. It was somewhat constrained by the departure having to be 0700 so crew could have the day previous as a day off.
This eventually was stopped-after 18 months- as it was considered more economical to fly all staff and crew on the Qantas and Pixie services. Also the PNG customs cracked the darks when they realised all the crew were being carried as deadhead crew on the general declaration, thereby avoiding the quite considerable taxes.
As one manager once said, "we've have never made money on that run anyway."
Right; sock draw sorted; undies now.
BTW FarCu I am not a KIWI, sheeez give a bloke a break. I'm not even a scientist and have never studied Physics for that matter.

Qantas and Pixie at least offered a decent meal. With that crowd all you get are stale biscuits and sweet sickly juice.

You're right EastWest Loco accountants are not logical under stress.

On the money to a point Craven and EWL. Frankly there is no place for accountants in MD, CEO or GM Roles in this industry (SMc is the exception). They look in the rear view,and tend to think vertically. Consider the historical performance of APNG and the Sister in OZ once the accountants assumed the reins. Both airlines performed very positively in the past under professional industry personnel. In key areas i.e. financially ,operationally, ethically and with tremendous staff morale.
APNG still has good managers they just aren't listened to. OZ has no managers as has been covered in many other threads.

Justa Dash, perhaps they should send the school teacher up there to fix things? Bring a little mumbo jumbo into the company :ok:
What do you think Toodogs, agree?

With very very few exceptions, ain't that the truth. Generally, they should be restricted to counting the beans, and not be permitted to meddle in things they know little about. Hence the old adage of a little knowledge (usually self credited) is a dangerous thing, often associated with the semi disastrous consequences which are seen all too frequently.:ugh:

Hey Cactusjack...what's the latest on Skytrans? ;)

1st July, this year APNG requested from the Port Morseby Stock Exchange that their securities be suspended as they are:

"currently engaged in negotiating transactions, which if they were to proceed, may have a material impact on the company."

Full letter at http://www.pomsox.com.pg/dimages/com...fs/28_2323.pdf

Hi Socksfirst,
I was on a PX F100 flight in from CNS-POM and that is what they offer on that flight just a biscuit n all the yeeuk juice you can drink,
APNG should have stayed on the route coz at that time 5-6 years ago they were the only mob that was offering in flight entertainment. The problem was way too many highly paid chiefs that show up at work after lunch on Monday and they hopping on a plane back to brissy after lunch Friday.............really??? if I was getting paid a half a million kina a year I will park my overpaid ass in POM
What a shame APNG was company with massive potential, back in 2009-2011 they had most of the mining contracts.

APNG and Skytrans - both are falling over
 

Most of APNG's issues can be traced back to the current CEO. He was 'moved' from Skytrans due to incompetence and CASA wanting him gone due to continued non compliances, and he was sent to APNG by SW, which was a bad move as he has now brought them to their knees financially as well. The amount of accidents and the redundancy of the best pilots and engineers to save money is frightening, and backs industry's concerns about both it and it's sister airline.
Skytrans can't hold on to Chief Pilots or safety staff either, who keep leaving. The current Skytrans 'chief pilot in training' with just 10 weeks service has resigned. Yet another manager flee's with their life. The actual CP who was training the young fella leaves in November, after resigning 4 times in two years. They have lost all the key managers, have two idiots running the airline, both with backgrounds in either accounting (not formally), or in school teaching. The other so-called manager running everything is an ex check-in bloke from Gladstone who talks big but achieves nothing. The writing is on the wall for both these airlines, and both needed to sign off on big contracts to stay afloat, and both have been unable to achieve that in recent months as they are simply out of their depth in a changing environment.

Runway incursions in Australia, Dash 8's into the ground in PNG, maintenance overuns, lots of things being swept under the carpet in both countries, it might be time that the Wild family went back to PNG, bought a farm and plowed all their energy in returning bull**** to the ground. It would be far safer for the travelling public.

P.S Skytrans are doing yet another major overhaul of an aircraft in the open hangar in Cairns, Amazing how CASA turn a blind eye to that, considering it breaches their maintenance permission for that facility. Nobody seems to care that there is no fire supression equipment in that hangar and it is only meant to be used for light maintenance and avionics work :=:=

I find it VERY difficult to believe that Skytrans would conduct heavy maintenance in a facility so close to the public eye if it wasn't approved... You can apply to the CASA for many exemptions... this may have been one.

What's this got to do with anything. Does fire suppression equipment improve maintenance quality or something???

Anyway on most major airports the level of fire suppression equipment is usually a product of hangar size (volume). The big requirements tend to kick in at 20,000 cubic metres. I doubt Skytrans plastic shed would be even 10,000, so hose reels and extinguishers would be probably all they need.

Some pics in here of their hangar:
Aviation Industry - Global Fabric Structures

Looks like a hose reel in a least one of the pictures. So it appears they do have fire suppression.

Watch This Space
 

What Square Bear said is significant, watch this space.

Safe Flying

Lots of ATR72's coming I hear!

So APNG are going for a "rebrand" what will they be calling themselves? :ooh:
Perhaps back to MBA? :E
ATR will only come if they can find further investors :}

Some airlines rebrand themselves and think that will fix any problems at the heart of the organisation. It doesn't . A rebrand by way of a spiffy new livery or a name change is usually only window dressing, it doesn't change the core issues of an organisation, what is at the heart. I like to think of it as 'the glitter coated turd'. Once the glitter is scraped off the top what do you have underneath?
Of course I'm not referring to APNG specifically here, just saying that rebrands are normally nothing more than a bandaid solution or a marketing and PR exercise in trying to hide the past without actually changing anything.

Maybe they'll be absorbed into 'PX link'? :E

Unlikely, in all probability. PX could go it alone with a rationalised Route expansion programme, if they so chose to do so.

Regards to ya all, B E.

I think UA is close on the money.

Or a PNG savvy business house could be assuming ownership, refer recent director resignation. Long long history of success in PNG, not in aviation but nor were they in hospitality for many years.

The 29th of August will be interesting indeed, Apng have not released their 2013 financial statement yet, that should have been released at the very latest by June IAW with POMSOX rules I think? What are the financial negotiations they are having? Perhaps for the ATR's, but first I think you have to pay off outstanding debt, which must be increasing every day now they have to pay the leases on previously owned aircraft.
So what is going on are they in a financial pickle? If so should not the staff be made aware!!
It is not usually a good sign when a company stops trading on it's listed exchange. The share price went from around 40 odd Toea to a holt at 33 Toea Hmm someone suspected something., I would be pretty annoyed if I invested at the float at 1 Kina, a loss of 67%, plus no dividend paid in what 4 years? Too many unanswered questions there for my liking.
See ya
Socks First then shoes,
Midvale school for the gifted class of 64.

I think because this is more pilots forum the comments here are more aligned towards flying & matters related.
PX problems are very much intertwined with PNG problems.
PX schedule is a mess. Their flights are just not full. They are unable to adapt on the fly to the market conditions and needs. Being a small carrier they should be more agile. The fares are just too high, and then to make up for the shortfall in the revenue, they raise the fares again. PX need to close its unprofitable routes, they are just not sustainable. Improve capacity & loads on to ones that are profitable.

PNG should do more to market themselves, starting from expanding tourists obtaining visas on arrival. Improving the infrastructure for travellers, better hotels, budget hotels, backpacker type hostels & the like.
Riding on only one project which will come to a close soon will only see them drive themselves to the ground.

I wish them luck & a prayer.

All will be fine. Just give management a little mumbo jumbo training and consider everything fixed!

New owners
 

The word on the street is that the 29th August is about new ownership not ATRs.
Regional Aviation requires a more committed leadership team. Commuting Accountants and lawyers rarely fit in general or regional aviation leadership. Could be a case for maintaining the Current fleet as suitable for the operating environment. New owners would focus on the customer, rationalise routes, abandon the cash-flow/high utilisation model and give the aircraft time in the shed.
Will be a tough turnaround but possible. The leaseback arrangement is a major impediment on the business again the masterstroke of bean counters.
Senior leadership and far to much influence from the major (65%) shareholder has long been APNG,s issue.
As Charles from Darwin apparently said "Fish always rot from the head" or was he talking about adapting to change?

More mumbo and less jumbo please
 

Same applies for commuting HOFO's. All the FIFO senior managers haven't gone unnoticed, nor have the flash accommodation arrangements and expense being outlaid. It's also interesting how the MD opted for some reason to give the HOFO and CEO a second bite at the cherry after their performance at the 'other' airline?? I guess you get what you pay for :=
I still reckon teaching managers mumbo jumbo will fix all their woes, it worked in Australia :ok:

I have to tend to agree with you Cactus. The problem is the management get paid quite handsomely but really achieve diddly squat. None of the managers really care about the company, particularly the ones you have alluded to. No one really wants to work there. If a better job paying more came along they would be gone in a flash, wouldn't we all? Having said that there are a couple of really talented people working at APNG but they are dragged down by the incompetence of many. Cryptic clue as to one of the best managers-look down into the well see the ground. He is at least much smarter than his roomy at the Airways that is for sure.


I think that a big announcement is due soon. PX are re-structuring and I believe going to adopt a low cost model for the domestic operations. All to be announced to coincide with independence day September 16. Are APNG going to be part of this? Hence the trading holt. If it does happen I doubt that PX would retain many of the current APNG management, if any.
Maybe APNG will try to battle on; on their own, which to me would be financial suicide.


But it does look as though they are back in favour with Newcrest, announcing they will be using APNG on the Pom Lihir run as of October, flicking PX. Heavylift to operate the Cairns Lihir return run as of October.
CHEers

Is it true that the Chief pilot (MFO) and CEO both fly in on a Monday morning and fly home on a Wednesday night?
Where do they find such dedicated individuals?