Airlines breach ownership rule

 SOME aviation companies are in breach of the legal requirement to have at least 51% local ownership, according to a government source.

The Civil Aviation Safety Authority Act  2000 stipulates that shareholding for aviation operators in PNG should be 51% national and 49% foreign.

The source named at least seven aviation companies which have not conformed with the law.

In a letter to one of the aviation companies dated May 24, 2014, the department highlighted the need for compliance with the government policy on equity participation that domestic service providers must have majority ownership vested with PNG nationals.

“All existing and new entrants into the domestic aviation market are required to comply with this policy to set a level playing field for everybody to operate in,” the letter said.

Questions have been sent to CASA chief executive officer Wilson Sagati on the matter.

It is understood that the Transport Department is clamping down on the companies breaching the law.

The source said the law required all aviation operations, either already operating or new ones, to have at least 51% ownership from a PNG company or PNG national.

Transport Secretary Roy Mumu said with the launching of the National Transport Strategy in 2013, the department was implementing the transport sector policy initiatives for all the three modes of transportation.