PNG Air latest loss
 

PNG Air has recorded a K22.6 million loss before abnormal items and tax. The abnormal items included ATR induction costs of K2.31 million and over K18 million from the required accounting treatment of future maintenance reserve recoveries being lost as a result of the early termination of aircraft leases. This is notwithstanding that the early returns are expected to generate substantial future benefits for the company, well in excess of those abnormal costs.

This was made known during the announcement of PNG Air half year results. Company directors said that the company is going through a transition phase with the introduction of its brand new ATR aircraft and is yet to acquire enough scale to maximise the benefits of the new aircraft. They also attributed the loss to the downturn in the PNG and global economies. Of particular note is the activity in the charter market for the resources sector which has tailed off. Bringing in the new ATR aircraft meant there had been some short term excess capacity in the company’s fleet and had also involved investment to upgrade infrastructure and systems.

The short term excess capacity has been addressed by the agreed return of leased aircraft and restructuring other aircraft leases. However company directors said that the short term loss augmented well for the company’s long term future, as it positions itself to capitalise on serving increasing demand when the PNG economy recovers and resource sector activity increases. This is part of the airlines plans to be the airline of choice in PNG. PNG Air will be introducing three more ATRs by the end of 2017. This will see more of the company’s flights with the ATR while regular passenger services can be expected to generate increased revenue and profitability in the longer term. The company is confident that its commercial strategy is the right one to underpin a sustainable and profitable operation in the future.
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Blind Freddy could have seen this coming...in fact the total loss was 42.5 million Kina before tax if my math is right:ugh:

I would think the only thing propping them up is the fact that Pixi seem hell bent on self destructing and are cancelling flights at an ever increasing rate,thereby forcing the travelling public over to Png Air:rolleyes:

and what about that other treasure, TravelAir...

Oh for the days of Milne Bay Air.:sad::{

Isn't NASFUND and many PNG VVIP's shareholders in PNG AIR?

Thought maybe that alone would keep it supported. Faheel, you have a good point.

Travelair went bust 18 mths ago having never paid airnav charges,terminal rental etc...got away with it until the fatal mistake of not paying the the lessors
and aircraft subsequently repossessed:=
.

Not flash at all. Only K12.1 mill Shareholder's Equity.........

http://www.pomsox.com.pg/wp-content/...ce-sheet-3.pdf

Interesting in that PNG Air's annual revenue for the last financial year is in fact less that Talair's annual revenue 30 years ago.

Re TravelAir, wasn't there a story around a few months ago that an Indon company was buying them and supplying a few F50's or the like??

Not much hope for any of the operators is there; what happened to Hevilift, are they still in business?

I'd take the position that privatisation is an option under consideration.

PNG Air - formerly known as Airlines PNG (APNG) formerly known as Milne Bay Air (MBA) is a private company. Started around the '80's and listed on the PNG Stock Exchange sometime in 2008.

Currently a public company...

....worth 15 toea per share.

more like 3 toea....but no one wants to buy them anyway.. last time shares changed hands was in February !

troppo

apologies...brain fart by me.

And I remember the float so well....Prospectus mentioned two 737's. ..What could have been!!!

Also remember well that ANG and APNG almost became one!!!! Maybe that can be revisited..

It's pretty obvious tha PNG Air have a long term plan in terms of where they would like to be in 5 years and beyond.

Sources tell me that the progressive introduction of the ATR has proven to be a good business decision by the airline.

Obviously the industrial issues next door are currently having a positive impact on their business.

Whilst corporate charters probably kept them afloat in a time when they required more cashflow to keep the props turning, the bread and butter is still in the domestic RPT sector - and it always will be.

Seriously doubt that the merge idea will be thrown on the table again.

Disagree entirely. Are you from Pangia?

Anyone EVER, EVER seen a Profit/Loss statement from PX?

CG management would need to have their heads read to be anywhere near being under the umbrella of PX.

CG management would need to have their heads read to be anywhere near being under the umbrella of PX.

Reverse your thinking.