Australia and Papua New Guinea (PNG) have signed a new bilateral agreement, which will almost double the capacity between the two countries. It will also allow new entrants on routes traditionally served only by national carriers Air Niugini and Qantas.
The increased capacity will provide for the equivalent of up two daily Boeing 747 services, although the capacity is likely to be spread over a greater number of frequencies using smaller aircraft operated by third- level carriers.
The agreement provides for a revised "dual-route structure" to allow niche operators to open direct flights between non-trunk points in northern Australia and PNG. These routes are likely to include connections from the ports of Cairns, Darwin and Townsville, to Port Moresby and new PNG destinations.
The PNG-based regional MBA (formerly Milne Bay Air) and Island Airways are likely to be in contention for some of the new routes. MBA is understood to be acquiring, at least two de Havilland Dash 8s, to add to its fleet of de Havilland Twin Otters and Fairchild Dornier 228s.
Meanwhile, Air Niugini is understood to be negotiating with Bombardier, to acquire two Dash 8-200s to replace its Dash 7s.
Source: Flight International
