More than half of domestic routes not profitable: PX

Caption: Air Niugini Chairman Sir Frederick Reiher.



By MATTHEW VARI



AIR Niugini Board Chairman, Sir Frederick Reiher revealed the challenges faced by the national airline through its domestic routes subsidiary Link PNG.

He said with the commitment to support national development to all provinces as a State owned entity there were significant challenges also.

“No other airline, or sea or land transport operator has to meet that requirement. We service no less than 25 domestic destinations – and I have to say that a significant number, more than half, of our domestic services are not profitable,” Reiher said.

“That means the profitable services, and their passengers, are effectively subsidizing the unprofitable services.”

“Our capacity to continue doing so is dependent on improving our overall efficiency. That means we must acquire more efficient aircraft – such as the Fokker 70. But it also means we need the support of the National and provincial governments in a couple of key areas.”

Key areas include the need for the program to upgrade airports in Port Moresby, Hagen, Goroka, Lae, Alotau, and Hoskins, which Reiher said are vital to be continued.

“We welcome the excellent program the national government, with provincial government support, has been implementing and we urge the respective governments to continue with it so that all major provincial airports have the best aircraft movement and passenger facilities.”

“Secondly, we need the national government, via the National Airports Corporation to commit to another project that is vital to our efficient operations, and to meeting passenger demands.”

“We need more night flying capacity across the nation. Only a handful of airports have night landing and takeoff capacity. That limits Air Niugini’s ability to gain the maximum efficient utilization of our 24 aircraft.”

“It also is an impediment to tourism development, to business and industry, and commuters generally. It will help Air Niugini improve services, and keep downward pressure on air fares and freight costs.”

He added that the arrival of a third F70 brought the total number of aircraft the airline has to 24.