Link PNG, PNG Air codeshare plans hit snags

A proposed codeshare agreement between domestic carriers Link PNG (Port Moresby) and PNG Air (CG, Port Moresby) has run into difficulties with a decision by Papua New Guinea’s economic regulator and consumer watchdog to revoke its prior conditional authorisation for the proposed partnership. The proposed codeshare would be part of a Joint Operating Agreement between the two carriers.

In a statement, the head of the Independent Consumer and Competition Commission (ICCC), Paulus Ain, said the airlines had missed a January 29 deadline to submit a revised and signed codeshare agreement within three months of the ICCC having granted conditional permission on October 29, 2021.

“The ICCC confirms that Link PNG took no further steps with PNG Air on the proposed codeshare arrangement to comply with the authorisation conditions since the decision of the ICCC was relayed to them.” In line with legal requirements, the Commission was therefore revoking its authorisation, he said.

“The ICCC now invites Link PNG and PNG Air to put forward their objections with reasons. All other relevant stakeholders and public are also invited to provide any comments on the revocation,” he added. Submissions must reach the ICCC by March 9, 2022.

The regulator previously stopped a proposed merger between the two airlines citing competitive reasons, stating the proposed codeshare would only be authorised with amendments to limit any anti-competitive fallout in the market.