Aviation
Air Niugini Beset With Problems
Pressure for profit mounts
Papua New Guinea's flag carrier Air Niugini continues to experience crippling problems with no quick solution in sight.
Recent revelations of the airline's cumulative losses of K113 million since 1998 and its failure to pay dividends since its formation 30 years ago has put added pressure on the airline's board and management to keep it afloat.
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The revelations surfaced in March when the airline's representatives appeared before the Parliament's Permanent Public Account Committee to be grilled over its financial affairs. Being a government-owned entity, the airline was required by law to appear before the committee.
The airline's latest hiccup had been a major electrical fault to one of its international route air buses, a Boeing 767, in March. The incident had displaced many international passengers to various destinations.
The aircraft did not operate its scheduled service to Port Moresby because of the fault. It had to be ferried to Christchurch, New Zealand for rectification since it is still registered under the New Zealand Airline's Operating Airline's Licence (AOC).
A Qantas Boeing 767 aircraft was chartered by Air Niugini to uplift passengers. Other arrangements were made to cater for passengers booked to travel to and from Brisbane on special flights via Cairns.
It has also made other arrangements to fly Manila bound passengers via Cairns and onto Hong Kong and Manila. Inbound passengers from Manila and Singapore were also flown in on another chartered aircraft.
Air Niugini said in statement that it regretted the inconvenience caused and made other arrangements to minimise disruptions to passengers' itineraries.
The airline has been plagued with problems. Like all other airlines, all its purchases for spare parts and fuel are paid in American currency.
The airline was caught in a complete mess after the Kina started to fall in the late 80s. The rot set in when Papua New Guinea lost the lucrative Panguna mine along with one third of the nation's gross national product.
Air Niugini mostly operates "old" aircraft, which should have been replaced five years ago, but does not have the means to do so.
Grandiose plans have been hashed and re-hashed by airline operatives.
The airline has been given‹apart from the initial funding at its inception‹two lots of funds by the Papua New Guinea Government. One sum was K8 million and another K50 million. The first sum was used to pay creditors. The second was used to settle debts with PNG Banking Corporation, leaving Air Niugini with an operating balance of K10 million.
At that time, Air Niugini owed US$2.5 million to engine overhaul contractors in the United States and the Kina then was worth 35 US cents. Various other creditors were paid from the rest of the money. The result was that the airline had no money to buy new aircraft.
The airline's management is currently under pressure from unions following a decision to cut salary of those employees earning above K40,000 by 10 percent.
There is also fear that expatriates working for the airline could also be facing a pay cut. Some industry sources say the airline cannot survive without the expatriate input.
However, it's not all bad news for the airline.
Air Niugini in March announced that six new cadet pilots commenced their induction course under the airline's National Cadet Pilot Training Scheme with familiarisation tours of the airline's operations.
The six cadet pilots‹Kalai Hungrabos, Darius Waula, Daniel Vavar, Norman Daniel, Gairo Waigero and Nama Mariole‹were selected from 2000 applicants after thorough assessments of their academic ability and potential.
They will undertake a 58-week course at the Combined Aviation Services, Coffs Harbour, Australia.
When they return to Air Niugini, the cadet pilots will be trained as First Officers on the Dash 8 aircraft on which they must attain 1500 hours as first officers before proceeding to fly Fokker 28s.
