Air Niugini proposes to boost PNG Air

Air Niugini Limited has proposed to acquire controlling interest in PNG Air Limited (PNG Air). Through its subsidiary Link PNG is proposing to acquire up to 60 per cent shares in PNG Air.

Independent Consumer and Competition Commission (ICCC) Commissioner and chief executive officer, Paulus Ain said the proposed transaction is going through various regulatory approvals, and one of them is seeking authorisation from the ICCC.

“Link PNG has lodged an application for Authorisation with the Independent Consumer and Competition Commission. Mr Ain said because there are only two airlines competing in the domestic freight and passenger services, ICCC will asses this application carefully.

“Link PNG had initially applied for Clearance from the ICCC who directed them to apply for authorisation as the proposed transaction is likely to raise serious competition concerns and may not pass the ‘competition test,” Ain added.

He advised that authorisation is a public and transparent process where the ICCC invites all stakeholders and the general public to provide their comments and views on any proposed merger or acquisition.

NASFUND shares

Meanwhile, NASFUND’s Board has approved the sale of its shares in PNG Air to Link PNG.

The same offer will be extended to all of PNG Air’s shareholders.

Link PNG general manager, Alex Kia said the proposal would be a huge coup for airline passengers, as well as ensuring job security for all the PNG national staff across both airlines and the continuation of the PNG Air brand in the skies.

“At a time when aviation is in turmoil there is a compelling case for creating a stronger PNG Air, across a wider network, and ensuring job security.

“We will also ensure the savings created will be passed back onto our customers.”

Mr Kia said there wouldn’t be substantial changes at PNG Air; instead the strategy was to integrate the present Link PNG network into PNG Air’s schedule including rebranding the Link PNG DHC-8 turboprops as PNG Air. Link PNG requires regulatory approvals from ICCC, before the partial acquisition is finalised.

The merger would be one of the most signficant partnerships in PNG’s aviation history.