K2.5bil for new aircraft
By GYNNIE KERO
CABINET has approved the acquisition by Air Niugini of 13 new aircraft from Airbus, costing a total of around K2.55 billion (US$850 million).
State Enterprises Minister William Duma revealed this yesterday as part of the national airline’s plans to replace the Fokker F70 and F100 jets with the bigger and newer A220-100 and A220-300 aircraft by 2025.
“The new aircraft is a game-changer for the people of Papua New Guinea,” he said.
“The Airbus A220 can provide domestic and international services, with greater carrying capacity, greater comfort, and greater operating efficiency.
“It burns 27 per cent less fuel than our current fleet.
“With more carrying capacity and greater operational cost reduction, Air Niugini will substantially improve the airfare options and reduce the cost of travel.”
Duma said the decision was approved by the National Executive Council chaired by Prime Minister James Marape.
He said they would acquire 11 Airbus A-220 aircraft and two Boeing 787 wide-body jets.
They will be financed through borrowings from external export credit agencies (80 per cent) and State-owned equity (20 per cent)
He described the Airbus A220 as the “epitome of modern airliners within its size category”.
He commended Air Niugini’s acting chief executive officer Gary Seddon and his team for the effort to select the right aircraft to secure the future of the airline.
“The first A220 will arrive in the first quarter of 2025,” he said.
“That gives us two years to get the airline ready. We have to train the crew, recruit more staff.
“They (aircraft) are incredibly fuel efficient.
“We will be using those savings to pass onto our customers in the form of cheaper airfares.
“Also, they carry few more passengers as well.”
Seddon also said Air Niugini would bring in eight new aircraft in the coming months while waiting for the A-220s.
There will be two additional Boeing 737 jets joining the fleet.
One is arriving next month.
There are six Q-400 aircraft for domestic flights arriving soon.
“We have a wet lease B-767 aircraft joining us in the next four weeks.”
Duma said Air Niugini would be able to pay off the K2.55 billion.
2 comments
Well done decision. But our national airline is one of the expensive airline compared to the rest of the world, if that is the solution than fine to reduce fare. Because competition is another factor to consider against other first level airline companies of the world and within the country as well.
If I understood it correctly, the state is purchasing the planes. If my understanding is correct then what I don’t seem to understand is the money that Air Nuigini makes where does the money go and the government is paying for the planes? I think this is a serious problem needs serious attention.
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