PAPUA NEW GUINEA (PNG) prime minister Sir Julius Chan has ousted Air Niugini's board and general manager, following former chairman Mike Bromley's public warnings that the airline is being "choked to death" by the Government.
Bromley had cited price controls, gross under-capitalisation, inflated operating costs resulting from the devaluation and subsequent float of the national currency, and unpaid Government-travel debts to the carrier.
Under the new board, headed by former Air Niugini general manager Joe Tuavasa, general manager Dieter Seefeld is expected to be replaced by the company's corporate secretary, Moses Maladina.
Bromley had warned Chan's Government that delay in approving a 10% fare-increase in the face of a 30% rise in operating costs was likely to cause the carrier's financial collapse. Bromley was responding to parliamentary attacks, on Air Niugini and demands for its privatisation by the prime minister, who controls two rival airlines.
Air Niugini operates a network of domestic and regional international services with Fokker F28s, Airbus A310s and de Havilland Canada Dash 7s.
Source: Flight International
