BID TO ACQUIRE PNG AIR SHARES NOT A MERGER


June 18, 2020 - 1013 views

Air Niugini Managing Director Bruce Alabaster says Air Niugini’s proposal to buy 40 per cent of shares that NASFUND holds in PNG Air is not a merger but rather a joint venture with MRDC and the other shareholders of PNG Air.

In an interview with FM100 News, the national airline boss says PNG Air has lost K 93 million over the last four years and now has K 143 million in carried forward losses which caused PNG Air not making a profit in a long time.

Mr Alabaster says those are actually losses that relate back to the shareholders who are the employees of the private sector that pays superannuation.

He says therefore the undertaking by Air Niugini is to make PNG Air profitable again.

He says the undertakings are that, PNG Air will be retained as a separate corporate entity with its own brand, own management team, its own sales offices and website, have its own separate price air tickets and staff support provided by Link PNG will wear PNG Air uniforms, and operate in accordance with PNG Air procedures.

He adds domestic airfares will not increase, no loss of jobs for PNG nationals, no ongoing requirement for the PNG Government or PNG Shareholders to continue to subsidize the PNG airline industry and MRDC's present shareholding position in PNG Air will not be diluted.

Comments(1)

Log in to comment
Mike, 7 months ago
Optimistic previsions