Papua New Guinea’s Watchdog Pushes Airfare Regulation for Airlines
Papua New Guinea’s competition regulator is seeking authority to introduce airfare oversight measures, citing concerns about pricing transparency and limited competition in the domestic aviation market.
Roy Daggy, Commissioner of the Independent Consumer and Competition Commission (ICCC), has urged the government to empower the watchdog to implement either direct price controls or a formal price monitoring regime for the country’s airlines. The ICCC’s inquiry reportedly identified shortcomings in pricing structures and service efficiency, raising concerns about consumer protection in the sector.
At the center of the debate is the domestic aviation market structure, which Daggy described as “unfavourable” to consumers. Papua New Guinea’s airline landscape is largely dominated by two carriers: Air Niugini and PNG Air. The limited competition between the two operators has prompted scrutiny over airfare levels and service standards.
According to the ICCC, its investigation faced limited cooperation from key state-linked stakeholders, including the National Airports Corporation and the Department of Transport. Despite these challenges, the commission concluded that greater transparency and oversight may be necessary to safeguard passengers in a market where alternatives are scarce.
Currently, the ICCC does not have regulatory authority over airfares. Granting the commission the power to monitor or control prices would represent a significant shift in Papua New Guinea’s aviation policy. Potential measures could range from enhanced reporting requirements to formal price caps, depending on the framework adopted by the government.
The move comes amid broader global discussions about airline competition, affordability and consumer rights, particularly in markets with limited carrier choice. In geographically complex countries like Papua New Guinea, where air travel is often essential for connectivity between remote regions, airfare levels have a direct impact on economic participation and access to services.
Whether the government proceeds with granting additional powers to the ICCC remains to be seen, but the proposal signals growing regulatory pressure on the country’s aviation duopoly.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com