The Asian Development Bank (ADB) is preparing to support Air Niugini’s ongoing refleeting program with a financing package worth nearly K334 million (US$80 million).
The proposed loan aims to increase the national airline’s operational capacity and help address long-standing public concerns over flight delays and reliability.
The airliner is now replacing its old Fokker and leased Boeing Jets with Airbus A220s with the first one already delivered in September this year.
Related content: https://www.airniugini.com.pg/en-pg/news/air-niuginis-refleet-programanlrp-a-new-era-for-papua-new-guinea-aviation/
ADB’s Country Operations Manager for the PNG Resident Mission, Soon Chan Hong, confirmed that discussions on the loan facility are still in progress and have not yet been finalised.
ADB is negotiating the K334 million loan terms with the PNG’s flag carrier to support the program.
When asked whether the loan would be taken by the National Government or the airliner through the Kumul Consolidated Holdings, Mr Hong told PNG SUN that Air Niugini is getting the loan (latter), not the government.
ADB’s Mr Hong did not indicate when the funds would become available for Air Niugini’s use.
Meanwhile, Opposition MP Donald James has expressed concerns about unreliability of the airliner’s domestic service.
The concern was raised despite the delivery of the first Airbus. The airbus is in operation.
The internal link below is the call for partial privatisation of Air Niugini:https://www.thepngsun.com/call-for-air-niugini-to-follow-fiji-airways/