Agency’s revenue drop by 60 per cent due to reduced flights, says Pakii

By PETER ESILA
AIR Services Ltd revenue dropped by more than 60 per cent since March as a result of the reduced number of international flights using PNG airspace.
Managing director and chief executive officer Captain Ted Pakii said due to the Covid-19 pandemic situation, there was a decrease by more than 70 per cent of international flights using PNG airspace.
He said it could take up to three years, if not longer, for air traffic revenue to return to pre-Covid-19 figures.
“These international over-flights account for almost 80 per cent of our total revenue. And as a result of the huge reduction, our revenue has reduced by over 60 per cent since March 2020.
This is expected to continue at least for the rest this year.”
About 50 to 60 international flights use the airspace every day before the pandemic.
“(Because of its) single revenue source, this is a major concern for the PNGASL,” he said.
He said domestic flights were slowly returning to normal.
Pakii said the state entity continued to provide air traffic control and aeronautical services to the aviation industry.
“We have employed strict cost-control measures to ensure that we remain cash-flow positive in the short to medium term,” he said.
“It is important to understand that regardless of the reduction in air traffic numbers, PNGASL has to maintain the same level of service to ensure aviation safety is not compromised.
“That means that there is a fixed cost for these safety services.”