Citizens to have part ownership of flag carrier

By MATTHEW VARI

Sunday, September 7, 2014 (Sunday Chronicle, PNG)

MINISTER for Public Enterprises and State Investments Ben Micah officially announced the government’s move for the partial privatization of the country’s national airline.

Since its establishment in 1973, Air Niugini has been a 100 percent state owned company, and under the arrangement it will still be the majority shareholder, with 51 percent and 49 percent to be traded as shares.

Mr Micah said that the government was confident of the ability of the airline to perform effectively with an injection from the private sector.

“It is an airline that I can confidently say is ready today is now capable of going to the next level of fully integrating into the commercial environment, therefore I would like to announce today that under the instruction of the Prime Minster, and discussions with IPBC and the Air Niugini Board,” Micah said.

“I will now be taking a submission to cabinet for the partial privatization of the airline, and I believe that with the injection of capital from the private investors, and priority is going to go to the superfunds, also going to go to Papua New Guinea landowner companies and PNG citizens to take up at least 49 percent of the first offering that is going to be put up in the market.”

“The government will continue to hold 51 percent and the management will still be under the control of IPBC, but 49 percent of shares is going to be allowed priority to the PNG public.”

He said as a result of the government’s decision the airline would become a regional player and also look towards globalizing its reach through its partnership with other major carriers in the world.

Adding that after being put through for cabinet deliberation, the actual form of the strategy will be made available for the benefit of the public.

“I do not want anybody to have any concerns about what is going to happen,” he said.

“There were huge criticisms of the merging and corporatization of government companies like the PNGBC with BSP which is now one of the largest banks in the South Pacific, which is now moving into Australia and even moving business into Asia.”

“BSP is an iconic example of what partnership between Private Sector and Government can deliver for Papua New Guineans.”

“Air Niugini is going to be the next BSP, but not on the ground in the banks, but in the sky.”