Air Niugini cuts jobs to stay flying

 AIR Niugini, which recorded a net profit of K100 million two years ago, is now forced to carry out cost-cutting measures to save its operations.

Its decision to lay off 250 workers starting this month is already causing concern among its employees, especially nationals, who believe that too many expatriates are holding positions which locals could handle.

National Airline Employees Association general secretary Emanuel Pilai said through an official yesterday that union executives would be meeting to respond to the airline company’s decision. He said details of their talks would be released later.

Chief executive officer Simon Foo said in a statement on Wednesday: “Air Niugini, as a prudent and responsible state-owned enterprise, must urgently address the matters for the benefit of the airline, its customers and its shareholders – the people of Papua New Guinea.

“These changes will build a platform for future growth, and to meet the challenges for the benefit of Air Niugini customers, staff and our shareholders.”

The company during its 40th anniversary last year, declared a K7.6 million dividend through the Independent Public Business Corporation.

But at the end of last month,the management circulated an internal memorandum to inform its staff that “prevailing economic circumstances and conditions are having a very negative impact on the business and profitability of the company”. 

Foo said Air Niugini continued to be the premier airline in the region. 

“Our share of the market has been maintained and we continue to achieve record levels of on time performance.