PNG Air CEO Outlines Long Term Roadmap, Banks on ATR72s

The CEO of PNG Air told shareholders at the carrier’s annual general meeting in Port Moresby on July 31, 2025, that the airline has changed and made significant improvements right across its business.

Brian Fraser said the onset of Covid-19 in 2020 had brought the aviation sector to a near standstill. “PNG Air was no exception,” he said. “Passenger demand evaporated, border closures crippled operations, and cash flow deteriorated almost overnight.”

PNG Air’s response was to implement an immediate cost restructuring, suspend non-essential audits, sub-lease two ATR72-600 aircraft to French Polynesia’s Air Moana, and initiate Papua New Guinea’s first ever creditors scheme of arrangement.

Fraser says these actions, backed by PGK 55 million (USD13.35 million) in rescue capital from primary shareholder Mineral Resources Development Company, alongside USD-denominated lease guarantees, were vital in avoiding liquidation.

PNG Air is now Papua New Guinea’s second largest scheduled passenger airline (after Air Niugini). It flies to 23 domestic destinations with its fleet of 14 aircraft, which include eleven 36-passenger DHC-8-100s (Dash 8s) and six 72-passenger ATR72-600s.

Fraser said 2024 was not without its challenges, including civil unrest in Port Moresby, nationwide fuel shortages, supply chain bottlenecks impacting aircraft and aircraft parts deliveries, and implementing an internal culture reset.

The CEO said that despite this, PNG Air delivered on some key priorities last year, including meeting all scheme of arrangement commitments; leasing a competitively priced ATR72-600; renewing its maintenance organisation certification for another three years, extending and maintaining mining contracts; keeping BARS gold standard accreditation; and completing the airline’s audited financial statements for the years 2019 to 2023 within just 10 months.

“This was achieved under tight timelines and limited resources, and it reflects the team's strong commitment to transparency, compliance, and sound financial governance,” Fraser said.

He said three overarching priorities underpin PNG Air's long-term roadmap. They are fleet modernisation, fiscal discipline, and service excellence. “At the start of 2025, we launched a three-year strategic plan focused on five key pillars,” Fraser said.

Those pillars are fleet simplification and renewal, restoring capacity, investing in people, improving operational performance, and growth and network expansion.

The fleet simplification and renewal strategy centres on phasing out the Dash 8s and replacing them with ATR72-600s.

“Four (Dash 8) units have been parted out, two grounded, and the remainder are under active divestment discussions,” said Fraser. “The strategic shift to an all-ATR 600 series fleet will reduce complexity, lower operating costs, and improve training and maintenance standardisation across the network.”

“To regain lost lift and better serve remote and underserved regions, PNG Air is actively negotiating the acquisition of seven additional ATR aircraft over the next 12 to 15 months," he continued. "This will allow us to rebuild our domestic network. Additional aircraft will allow us to reopen previously suspended routes, increase flight frequency, and expand service into growth corridors.”

Fraser also said that over the past two years, PNG Air has lifted its on-time performance from a “modest” 50% to an “impressive” 75%.

“Simultaneously, our cancellation rate has dramatically dropped from 30% down to just 4%, underscoring the significant improvements in our operational stability and customer experience,” he said. “Flight frequency has also improved with more seats on market through improved systems and initiatives driven through our maintenance repair organisation.”

“PNGAir has changed and made remarkable improvements right across its business,” Fraser told shareholders. “Our commitment is clear - we aim not only to meet but to exceed the standards set by our regional peers.”