Air Niugini announces drop in fares over oil prices

 AIR Niugini will be reducing its airfares to accommodate the falling oil prices on the world market. 

This will be the second reduction in fares this year the airline company has made on  domestic and international routes.

Air Niugini chief executive officer Simon Foo (pictured) said the continuous drop in crude oil prices on the world market had allowed the fuel surcharge to be further reduced.

“Between September and November 2014, the airfare was reduced by K30 return sector, followed by a further decrease of K20 on Feb 1 and K10 in March, giving a total of K60 per return sector since September last year,” Foo said.

International airfares were reduced from up to K500 depending on the routes.

However Foo said aviation fuel was still high in the country despite low global market prices.

“We wish to make it clear to the travelling public that, while the average aviation fuel prices globally have dropped, aviation fuel in Papua New Guinea is still very 

high compared to other countries,” he said.

Foo said Air Niugini would monitor crude oil prices and would pass savings to the travelling public if there was continuous drop in the prices.

He said all other costs are being closely managed to ensure that efficiencies were given to customers.