APNG loses K20mil

Business, Normal

The National, Wednesday October 23rd, 2013


AIRLINES PNG (APNG) posted a net loss of almost K20 million last year after making a K2 million profit in 2011, the company’s annual report revealed.

The airline blamed this on the after-effects of the global financial crisis (GFC) in 2008.

The report said APNG planned to sell surplus aircraft this year.

Chairman Simon Wild said: “2012 was a challenging year for the global airline industry and widespread effects of the GFC were still being felt. 

“Slower-than-expected recovery in the US and financial crises in Europe significantly affected global commodity prices. 

“These influences had an adverse effect on Airlines PNG with a number of its customers in the resources industry seeking to reduce costs and especially those associated with “fly in fly out” operations”.

Wild said these effects coupled with reduced market confidence in the first-half of the year as a result of the Madang accident in 2011 and an inability to increase the airline’s capacity, resulted in the airline’s net after-tax loss of K19.98 million for the year.

Despite the difficulties, Wild said the board believed that the changes APNG carried out during the year and its commitment to a high level of service would support a turnaround for the company. 

The APNG board has conducted a review of the airline’s operations aimed to deliver quality service.

Wild said the board continued to see many opportunities for the airline, particularly in the domestic market where the current level of service could be greatly improved. 

He said APNG had improved its performance since the last quarter of 2012 and had sufficient working capital to support its 2013 capital expenditure, scheduled maintenance and working capital commitments.