Costs beyond control: Reiher

 By ABIGAIL PHOEBE

CONDITIONS in the Papua New Guinea airline industry remains difficult, according to Air Niugini board chairman Sir Frederick Reiher.

“Our operating costs are being impacted by factors beyond our control, and factors we have the capacity to control where there is a will to do so,” he said.

He told the Association of South Pacific Airlines conference in Kokopo that the challenges posed by routes and services, which have an important community service attachment were “simply either unprofitable or marginal”.

He said in a big nation, it was a real issue for airlines and governments.

“The country’s road network is limited, sea transport is really only for local use in terms of passenger movement, our people are heavily dependent on air services, especially those provided by Air Niugini,” he said.

Sir Frederick said the airline introduced Link PNG to provide airline services to remote and less populated centres although they were not profitable.

He said Link PNG was a low-cost, more limited in-flight service airline operating its own aircraft and had its own crew. 

“The high standards of safety of the airline have not been compromised with the inclusion of Link PNG.”