Polye told
The National the proposal for Airlines PNG and Air Niugini to merge was his,
and he was floating the idea among fellow ministers and industry stakeholders.
He said the
government’s “open sky” policy would attract more competitors to the country as
PNG becomes an attractive destination for commerce, trade and holiday.
“Our skies
will get busier as we have seen with the entry of Qantaslink and Virgin Blue.
“The merger
proposal might be the best option for both airlines (APNG and Air Niugini),” he
said.
“Air
Niugini may not like this, but it must remember the playing field has never
been even. Air Niugini has survived over the years, and re-fleeted through
massive capital injection from the government.
“APNG may
not be government-owned and funded, but it is about 30% PNG-owned. It has
served the country well, flying to some very rural and tough areas and is
helping to deliver our development programmes.
“It might
have debt, or suffered losses, but that will be taken into account when
determining equity in the merger.”
He said his
advice was that a merger would save both airlines K150 million, give the merged
entity a better capital base to work from and remove the need for capital
injection by the government.
“I believe
this strategy is best for both airlines going forward.
“I have
discussed this with the prime minister and he is supportive.”
Polye said
the merger proposal would be thoroughly discussed.
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