Air Niugini, PNG Air Dispute NAC’s PGK150M Debt Claim
Papua New Guinea’s Civil Aviation Minister Walter Schnaubelt claims Air Niugini and PNG Air owe the National Airports Corporation (NAC) over PGK150 million (USD37.5 million) in unpaid fees. However, both airlines dispute the debt allegations.
Schnaubelt stated that these arrears have impacted NAC’s ability to enhance airport infrastructure, including terminal expansions at Port Moresby Jacksons International Airport and 21 other airports nationwide. He stressed that despite repeated requests, the outstanding amounts remain unpaid.
According to reports, state-owned Air Niugini allegedly owes PGK120 million (USD30 million), while privately-owned PNG Air’s debt is said to be PGK30 million (USD7.5 million).
Air Niugini CEO Gary Seddon responded, confirming ongoing discussions with NAC but refuting specific financial claims. “We continue to meet our agreed obligations and are working collaboratively with NAC to enhance airport infrastructure,” he said.
PNG Air CEO Brian Fraser also denied the claims, stating the airline has adhered to a court-approved creditors scheme since December 2023. “PNG Air has met all liabilities to creditors, including NAC,” Fraser affirmed. He further noted that NAC’s internal reports indicate PNG Air is the only local carrier consistently maintaining its payments.
Both airlines emphasize their commitment to resolving financial matters while ensuring airport development projects move forward. However, the dispute over outstanding debts raises concerns about the financial sustainability of Papua New Guinea’s aviation sector.
Related News: https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com