Qantas Airways appears to have the lead in Air Niugini's second privatisation attempt. When expressions of interest closed early in February, Qantas looked to be the only foreign airline among the seven parties declaring their interest. Other potential bidders include a New Guinea airline, a European consortium that may include airline interests, and a US consortium apparently limited to non-airline investors.
Papua New Guinea (PNG) is under pressure from both the World Bank and the International Monetary Fund to undertake a major privatisation programme. Air Niugini heads that list. The government's aim is to attract a foreign carrier to take a stake and help prepare the flag carrier for a public offering later. The government hopes to announce a successful bidder by late March.
Qantas was the key player in PNG's attempt to privatise Air Niugini three years ago. At that time Air Niugini was just emerging from a financial crisis. It remains short of capital, but has been profitable for the past two years.
Source: Airline Business
