Between 2025 and 2028, Air Niugini will replace its old forker aircraft with the aim to improve services and reduce costs. Photo: Supplied
The Papua New Guinea government has made significant strides to rebuild the country's ageing national flag carrier by investing NZ$2 billion into a three year re-fleeting program.
Between 2025 and 2028, Air Niugini will replace its old fleet of aircraft with the aim of improving services and reducing costs.
Five of the planes have been leased from vendors overseas, while eight have been purchased.
The financing for the program is being drawn from a combination of sources, including the PNG government, the ADB, US Exim Bank, and Export Finance Australia.
Air Niugini's managing director Gary Seddon said this is the single biggest investment in PNG aviation since the airline's establishment in 1973.
"This is aligned with PNG's commitment to modernising critical infrastructure and becoming a strong and significant player in PNG and the Pacific aviation market.
"So, we have 13 new aircraft joining the fleet between now and 2028. That is 11 narrow body Airbus A220 aircraft and two wide body 787s."
Between 2025 and 2028, Air Niugini will replace its old forker aircraft with the aim to improve services and reduce costs. Photo: Supplied
Following a high-level meeting with Air Niugini executives and the Minister for State Enterprises, Prime Minister James Marape said he was pleased with the latest developments.
"We are investing in our future, ensuring that Air Niugini remains competitive and continues to serve our country well."
The re-fleeting comes as Papua New Guinea struggles to manage the effects of a depreciating currency, foreign exchange shortages, and imported inflation.
In 2023, the government received US$918 million in assistance tied to reforms within its financial sector.
The IFM support has helped ease foreign currency shortages which affected Air Niugini's ability to purchase fuel and parts.
Seddon said they have been able to navigate through the hardships.
Air Niugini’s managing director Garry Seddon. Photo: Supplied
"Like many businesses in PNG, we've been navigating some complex economic challenges. We've had import inflation. We've had some FX issues to contend with.
"Seventy-five percent of our costs are in US dollars. We've had the ongoing impact of fuel price fluctuations and, in the PNG context, challenges we've had with local fuel supply. But we have been proactive."
The new aircraft are expected to ease the chronic delays and cancellations. The airline is also looking to reduce travel costs for passengers over the next three years.
