Papua New Guinea’s competition czar wants aviation reform

By Andrew Curran.

The head of Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) says the country’s domestic aviation duopoly isn’t good for consumers.

“There are only two major players, Air Niugini and PNG Air,” ICCC Commissioner Roy Daggy told The National newspaper. “We’d like to see more.”

The ICCC is undertaking an inquiry into Papua New Guinea’s aviation industry to determine whether there is a need for economic regulatory oversight by the ICCC.

Currently, the ICCC is something of a toothless tiger, with no regulatory power or oversight of the local aviation industry. It wants to change that.

Its inquiry extends beyond the implications of the airline duopoly. It is also examining the National Airports Corporation's monopoly control of airport infrastructure and Puma Energy’s nationwide monopoly on jet fuel supply.

“The inquiry was driven by… whether these concerns have direct or indirect implications on the rising cost of airfares,” a December 2025 ICCC statement reads.

Airfares a vexatious issue in Papua New Guinea

The cost of domestic airfares is a rolling issue within Papua New Guinea, where the average monthly salary is approximately USD630.

Papua New Guinea is particularly reliant on air transportation, given its size, many inhabited islands, mountainous terrain, and lack of road and rail infrastructure.

State-owned Air Niugini is the country’s dominant domestic airline. It has the biggest fleet and largest network. Air Niugini’s domestic market share is around 75%. PNG Air commands a 15% market share but aspires to grow this. Both airlines are well into fleet renewal programmes.

Smaller operators, such as Missionary Aviation Fellowship and Tropicair, pick over the remaining market share by operating on-demand charter services.

Currently, there is no dedicated legislative or regulatory framework protecting passenger rights. There are also limited remedies for flight delays, cancellations, and service disruptions. This state of affairs works in the airline’s favour.

“There are ongoing concerns about airfares, service reliability, infrastructure constraints, and redress of consumer complaints, where there is no platform or avenue where they (consumers) can address those concerns,” said Daggy.

The ICCC is pushing for legislative change and for it (or another agency) to assume responsibility for an aviation-relation consumer complaints framework.

“Limited transparency, weak coordination and unclear legislative authority between key agencies have stalled the progress and improvement of the aviation sector,” the ICCC Commissioner argues.

“Therefore, the draft report proposes some recommendations to implement a comprehensive economic regulatory framework, legislative and institutional reform and promote co-ordinated sector development.”

Competitor czar floats possible solutions

Daggy says there are two viable options to allow his (or another) agency to regulate the aviation industry. The first is using the ICCC Act to set direct price controls on airlines, the National Airports Corporation, and Puma Energy. None of these entities are likely to welcome such a move. Some have declined to provide data to the inquiry.

The second option is price monitoring under Papua New Guinea’s Price Regulation Act.

“We hope the government can make some decisions to effectively regulate the prices and also look at service performance,” Daggy said.

The ICCC is currently running a series of public consultation sessions before issuing a final report and recommendations later this year.

Photo: Air Niugini.

Contact the writer: andrew@aerosouthpacific.com