PNG Airfares and Competition Issues: Clough Calls for Air Niugini Privatization
Ian Clough, chairman of the Brian Bell Group and frequent flyer, has pointed out that a lack of competition in Papua New Guinea’s airline industry is a major issue for travelers. Clough suggested that the best way forward for Air Niugini is to privatize it and let industry experts manage the airline.
Clough said the government could still own part of the airline and benefit from its success. "Owning 30 percent of a profitable airline is better than owning 100 percent of an unprofitable one," he stated.
Although Clough admitted he is not an aviation expert, he shared his view as a customer, recognizing the challenges of running a profitable airline. "The best airlines in the world focus on safety, efficiency, and great customer experiences, yet they still struggle at times," he noted.
Clough also mentioned that PNG Air has the chance to grow and invest because of the issues at Air Niugini, but this would take time. "Until then, consumers have little choice but to pay higher fares, making them 'hostages' to the limited competition," he said. This has led businesses, including his own, to reconsider their travel needs and only travel when absolutely necessary.
He criticized Air Niugini's planned fare increases, calling them "disappointing" and likely to hurt both consumers and the airline. "Travelers in PNG already pay very high fares compared to global standards, with low levels of service. This is another example of rising business costs in PNG that ultimately affect everyday consumers," Clough said.
In response, Air Niugini’s acting chief executive officer, Gary Seddon, announced on Wednesday that the planned fare changes would be delayed until further notice.
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