ICCC rejects application

THE Independent Consumer and Competition Commission (ICCC) has rejected the application by Link PNG to buy shares in PNG Air, according to Link PNG.
The airline, in a statement yesterday, said the shares in PNG Air were currently owned by the National Superannuation Fund (Nasfund).
“Last November, Link PNG was approached by PNG Air (requesting) that (it) reapply to ICCC to buy shares in PNG Air (shares held by Nasfund),” the statement said.
“Link PNG (then re-applied) to ICCC.
“Link PNG understood this request was a consequence of the ongoing effects of the Covid-19 on PNG Air, but we remain of the view that the proposal provided significant benefits to the people of PNG, while still ensuring competition remained in the PNG aviation market, and airfares did not increase.
“It was the view of both airlines that the operational cost savings from the proposal would enable a stronger and more dynamic airline industry in PNG over the longer term.
“ICCC has advised that the application to purchase shares in PNG Air has been declined and consequently Link PNG has advised PNG Air of this outcome.”
It is understood that Nasfund owns about 39 per cent of shares in PNG Air – the highest shareholding in the airline.