Airline needs K300mil to re-fleet

The National Business
Sasindran Muthuvel

By DALE LUMA
AIR Niugini will need about K300 million to revive and re-fleet its operations, says State Enterprise Minister Sasindran Muthuvel.
Muthuvel said the airline was currently facing liquidity issues.
He said re-fleeting was the key to the success of airliner.
“Air Niugini is in dire need for more capital injection and also support to mitigate this economic slowdown,” he said.
“Having a difficult liquidity problem, a cash flow problem, we would at least need K300 million realistically if we want to revive and re-fleet the entire operation.
“The re-fleeting is the key to the success of Air Niugini.
“Because what the flights we currently hold are all F70. They are not economical aircrafts so it consumes a lot of fuel. So the re-fleeting exercise is really important. But, so far, compared to many other airlines, we have managed well even during this difficult period and Air Niugini was in the forefront of bringing in PPEs (personal protective equipment) even from China, from overseas and also supporting delivering these PPEs.
“We would need relief package of that amount (K300 million), that would definitely help to revive.”
Muthuvel said Air Niugini had also declared a profit of K500,000 for 2019 which was a big improvement after the airline made a loss of over K100 million the previous year (2018).
“So, from a K100 million loss and coming to break even declaring K500,000 profit is a great deal for us,” he said.
“But unfortunately 2020, with the onset of Covid-19, we are again facing a difficult situation.”
Muthuvel also thanked the Government for settling a K21 million outstanding payments which it owed to Air Niugini through a dividend arrangement.

15 comments

  • Former Air Nuigini Managing Director Allan Maine who left during COVID-19 period or Air Nuigini cum BSP Chairman Sir Kostas Constantinou should be the right people to explain status operation and not the Politician and minister……..We Want Sir Kotas to provide a detail report by next Monday, this is a lot money.

  • Cut down cost on expensive and fancy perks & privileges, down size and trim operational cost. Another thing, why are politicians reporting the financials of the company. Shouldn’t it be the directors? Very funny!

  • So Muthuvel is now the CEO of Air Niugini and all other SOES? I thought such statements can only be issued in Parliament by the Minister based on the audited report of the company concerned. Polticis vs business, will never get this SOES anywhere.

  • Why keeping this “white elephant” called Air New Guinea which has been a liability for so long??.. k500 000.00 profit is a laughing stock given its expensive infrastructure and fat salaries.. We expect millions in profit and it’s overdue now..just disband it…

  • Why keeping this “white elephant” called Air New Guinea which has been a liability for so long??.. k500 000.00 profit is a laughing stock given its expensive infrastructure and fat salaries.. We expect millions in profit and it’s overdue now..It should be disbanded for the good of PNG…

  • Pass the flag Carrier tag to Airline PNG. Airniugini needs an overhaul..They owe NAC 100Million.
    The so called tax being paid on your tickets were never credited to NAC.

  • We hear and read through the media that this industry or business arm of the government hasn’t generated any profits for the government since its establishment, so knowing this failure, where would they get this K300m to re-invest in an industry that is not performing.
    It is about time, the government make a stance and do a complete overhaul of that industry. It will hurt but it’s got to do what it’s got to do. Get an independent audit firm to do an audit to see why this industry isn’t performing, otherwise the management of the industry are lying to us (PNG people)

  • Air Niugini should be sold… Liability… swallow the pride… live a realistic life… PNG cannot afford to resuscitate continuously this dying citizen…. Muthuvel, smart mouth…. speak in Parliament…. Let the CEO talk…

  • After reading the post courier post regarding Air Niugini has not laid off any employee,i am afraid that it’s not happening as some people were already dismissed and asking for a 20 million support,i hope i will still keep my job especially at this difficult time.

  • Air Niugini is very expensive. This nonsense should stop! There should be more airline companies allowed to operate to PNG.

  • The airline industry is a marginal industry that is subjected to the volatility of the global economy. Most airlines get bail out by their government and Air Nuigini is no different to that.
    At this time, there needs to be a review of the organisation and reform the company to move forward. Reduce and minimise abuse of the airline by politicians too.

    Air Nuigini is the pride our Nation and should not be eliminated.

  • That very true Bro. They should reduce its fare so that more customer to boost and also reopen airports in those rural areas were most of people lived to bring basic services.

    If not privatise it!!!!

  • K300 million will not solve the underline issues in PX. Do a major overhaul of the entire business so it operates in a structure that is sustainable.

  • So PX through it’s subsidiary Link PNG was hoping to buy PNG Air shares from Covid-19 relief funding from taxpayers? PX is a non-performing entity that is not ashamed to beg for governments help. When will they pay dividend to the Govt?

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