Air Niugini Struggles with Staff Retention and Fleet Modernization Amid PNG’s Aviation Challenges
Air Niugini, Papua New Guinea’s national airline, is grappling with significant challenges in retaining its skilled workforce, including pilots and engineers, as revealed by CEO Gary Seddon during a recent meeting of Kumul Consolidated Holdings Limited in Port Moresby. Seddon highlighted the mounting pressure on the airline to hold onto its top aviation professionals, who are increasingly being lured away by international carriers offering higher salaries and permanent residency opportunities in countries like Australia and New Zealand. “This is a pressing issue for us,” Seddon stated, noting that five pilots were lost to Qantas and Jetstar just last month, while Air New Zealand and Qantas in Perth recruited several avionics engineers and licensed aircraft maintenance staff from the airline.
Despite these setbacks, Seddon expressed pride in the high caliber of Air Niugini’s personnel, emphasizing that their expertise makes them highly desirable in the global aviation market. He acknowledged the difficulty of competing with international offers but remained optimistic, stating that challenges often present opportunities for growth and innovation. The airline is now focused on finding ways to retain its talent while continuing to provide essential services to Papua New Guinea.
In tandem with its retention struggles, Air Niugini is also addressing the issue of an aging fleet, which has been flagged as a barrier to long-term competitiveness and sustainability. State Enterprises Minister William Duma emphasized that modernizing the airline’s aircraft is critical to ensuring PNG remains connected domestically and internationally. To this end, Air Niugini has embarked on an ambitious fleet replacement program, which began in 2023. The initiative involves acquiring 13 new aircraft, including 11 Airbus A220 narrow-body jets and potentially two Boeing 787 Dreamliner wide-body jets, at an estimated cost of K3 billion. Significant external funding, denominated in U.S. dollars, has been secured through Export Finance Australia to support this transformation.
Duma cautioned that the airline must remain vigilant about external risks, such as fluctuating fuel prices and exchange rate volatility, which could impact its operations. He stressed that the introduction of new aircraft represents a pivotal moment for PNG’s aviation sector, with the potential to enhance the country’s connectivity and economic prospects. “Our vision is to create a more robust and versatile airline—one capable of meeting both domestic and international demands while elevating PNG’s status in the global aviation market,” he said.
As Air Niugini navigates these challenges, the airline is determined to balance retaining its skilled workforce with modernizing its fleet. These efforts underscore a broader ambition to strengthen Air Niugini’s role as a key driver of connectivity and economic growth for Papua New Guinea. Seddon concluded on a hopeful note, stating that while the road ahead is fraught with obstacles, the airline is committed to seizing opportunities to build a brighter future for PNG’s aviation industry.
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