Papua New Guinea landowner companies linked to the Ok Tedi mine have moved into commercial aircraft ownership for the first time, acquiring three new ATR 42-600 aircraft in a deal expected to reshape the country’s aviation sector.
The aircraft, purchased through Mineral Resources Star Mountain, Mineral Resources Ok Tedi and Mineral Resources CMCA, will be leased to PNG Air under a long-term arrangement to support airline and mining operations across Papua New Guinea.
Related news: https://news.pngfacts.com/2026/05/png-landowners-take-flight-with-first.html
MRDC Managing Director Augustine Mano announced the acquisition during Prime Minister James Marape’s visit to the ATR aircraft manufacturing facility in Toulouse this week, describing the deal as a major shift away from foreign aircraft leasing towards local ownership in the aviation industry.
Mr. Mano said the acquisition represented a historic shift in local participation and ownership within Papua New Guinea’s aviation industry.
“We are talking about three brand-new ATR 42-600 aircraft,” Mr. Mano said.
“One is owned by Mineral Resources Star Mountain, another by Mineral Resources Ok Tedi, and the third by Mineral Resources CMCA.
“All three aircraft will be leased to PNG Air and contracted to Ok Tedi Mining Limited.”
Mr. Mano said the aircraft would play a critical role in modernizing air transport services in Papua New Guinea, particularly in Western Province and other remote parts of the country.
“This is history because, for the first time, landowners are buying aircraft directly from the factory and leasing them to a major airline company under a long-term arrangement,” he said.
“For the first time, Papua New Guinea now has landowner-owned commercial aircraft.
“Currently, most aircraft operated by PNG Air are owned by foreign leasing entities. These three aircraft — and others expected to follow — will begin changing that model by placing ownership into the hands of Papua New Guinean landowners.
“Usually, PNG operators lease aircraft from foreign lessors, but this is the first time aircraft are being leased from our own landowners.
“These aircraft have a minimum lifespan of about 30 years and are among the most modern regional aircraft operating anywhere in the world today.”
Mr. Mano said the ATR 42-600 would be the first of its kind to operate in Papua New Guinea and would gradually complement and eventually replace the ageing De Havilland Dash 8 aircraft currently in service.
“The Dash 8 fleet we have now is almost 40 years old,” he said.
“These new ATR aircraft are versatile and capable of operating on routes currently serviced by both the Dash 8 and the existing ATR fleet.
“We chose ATR aircraft instead of regional jets because they are far more suitable for Papua New Guinea conditions.
“ATR turboprop aircraft consume less fuel, produce lower carbon emissions, and are much more economical to operate, especially in a country like PNG where many airstrips are short, remote, and surrounded by rugged mountainous terrain.
“These aircraft are designed for exactly the kind of operational environment we have in Papua New Guinea. They can safely and efficiently service smaller airports and difficult terrain while keeping operating costs lower for airlines and passengers alike.”
He also revealed that another three aircraft were expected to be acquired later by other landowner companies, further strengthening Papua New Guinea’s domestic aviation sector.
Mr. Mano praised Prime Minister Marape’s visit to the ATR factory, saying it highlighted the importance the Government placed on aviation connectivity and economic development.
“It is really good because having the Prime Minister there puts pressure on ATR to deliver the aircraft quickly,” he said.
“It also shows country recognition of the ATR brand and Papua New Guinea’s importance as one of the largest ATR operators in the South Pacific.”
Mr. Mano said the investment aligned strongly with the Government’s Connect PNG vision by extending national connectivity beyond roads and into aviation.
“We talk about Connect PNG and the roads, but this is Connect PNG in the air,” he said.
“Travel in PNG will never be the same again.
“Flying should no longer be seen as a luxury, but as a convenient and accessible service for our people.”
ATR, or Avions de Transport Régional, is a leading global manufacturer of regional turboprop aircraft established in 1981 as a joint venture between Airbus and Leonardo.
ATR aircraft operate in more than 100 countries worldwide and are recognized for their fuel efficiency, reliability, lower operating costs, and ability to operate into shorter and more remote airstrips.
PNG Air first introduced ATR aircraft into Papua New Guinea in November 2015 as part of a major fleet modernization programme, beginning with the ATR 72-600 following the airline’s transition from Airlines PNG to PNG Air.
The ATR fleet has since become the backbone of PNG Air’s domestic and charter operations across Papua New Guinea, supporting both regular passenger services and large-scale resource sector operations.
As of April 2026, PNG Air operates 10 ATR 72-600 aircraft and is regarded as one of the largest ATR operators in the South Pacific region.
The airline plans to expand its ATR fleet over time to approximately 18 aircraft comprising both ATR 72-600 and ATR 42-600 aircraft.
The introduction of the ATR 42-600 is regarded as particularly important for Papua New Guinea because of the aircraft’s ability to operate efficiently into smaller and more operationally challenging airfields while maintaining modern safety systems, lower fuel consumption, and improved operational efficiency.
PNG Air has previously stated that ATR turboprop aircraft consume approximately 30 per cent less fuel and produce significantly lower carbon emissions compared with similar regional jet aircraft, while also offering stronger operational suitability for Papua New Guinea’s mountainous terrain, short runways, and remote airstrip network.
The continued expansion of the ATR fleet is expected to strengthen regional connectivity, support the mining, oil and gas sectors, facilitate tourism growth, improve the movement of goods and services, and enhance access to remote communities throughout Papua New Guinea.