Reform to restart with Air Niugini

STATE Enterprises Minister Sasindran Muthuvel says the reform of State-owned enterprises has resumed, starting with Air Niugini.
Muthuvel said in a statement the Covid-19 crisis had put the domestic aviation sector under pressure, and that decisions on Air Niugini had to be made in an industry-wide context.
“We are now looking at the impacts of the crisis on every area of the industry, including domestic carriers such as Air Niugini and PNG Air,” he said.
“Our primary aim is to ensure a sustainable future for the national carrier and to maintain essential aviation services.
“But we cannot ignore the potential impacts of our decisions on other parts of the industry.
“For that reason we are consulting widely across the industry as well as with parties who can potentially be involved in the Air Niugini rescue.”
Muthuvel praised the reform work done by the Kumul Consolidated Holdings (KCH) and the Air Niugini board and management.
“There has been a very cooperative approach taken by the new boards and management of both KCH and Air Niugini,” he said.
“I am confident that rapid and cost-effective solutions can be found that will preserve the industry, maintain essential services, and provide a foundation for a brighter future.”
Muthuvel said the restructuring of Air Niugini was focusing on immediate cost savings, outsourcing of some services, re-fleeting options, an urgent injection of working capital, further financial support from international partners, and cooperation with other government agencies to reduce regulatory and debt payment pressures.
Preliminary discussions have been held about the disposal of the Falcon executive jet.