Papua New Guinea local landowners buy three ATR42-600s

By Andrew Curran.

The first ATR42-600s owned by Papua New Guinea landowner companies and operated by PNG Air have arrived in Papua New Guinea. The first aircraft, P2-ATU (msn 1216), arrived in Port Moresby on May 10, 2026.

The second, P2-ATT (msn 1804), landed at Port Moresby (POM) on May 26. It flew in from Toulouse (TLS) via Malta (MLA), Jeddah (JED), Muscat (MCT), Karachi (KHI), Chattogram (CGP), Rayong (UTP), and Makassar (UPG) over six days. The third ATR42 is due to arrive over the coming months.

The three ATR42s form part of a wider fleet renewal programme underway at PNG Air that has seen the airline phase out its DHC-8-100s in favour of ATR72-600s and ATR42-600s.

The ATR42-600s have been purchased by individual landowner companies that are owned and managed in trust by Mineral Resources Development Company (MRDC), a state-owned entity that looks after landowner mining and petroleum equity interests. These particular landowner entities are Ok Tedi Mining shareholder companies.

The three ATR42-600s will be operated by PNG Air under long-term lease agreements. The aircraft will support Ok Tedi Mining operations while also operating regular passenger flights across PNG Air’s domestic network.

Local landowners wield major buying power

Papua New Guinea landowner companies support Indigenous clans that own customary land affected by major resource and infrastructure projects.

Large companies such as Ok Tedi pay royalties and other monies to landowners in exchange for access to the land and the right to undertake activities such as mining.

Consequently, large sums of money flow through these landowner companies. In response, several decades ago,  he Papua New Guinea Government established entities such as MRDC to help responsibly manage the funds and build long-term wealth for the clans.

The largest and most successful landowner companies have since evolved into substantial and sophisticated investment entities.

They compete for contracts and undertake business activities on behalf of the clans, with the aim of generating income that can be distributed among local clan members. However, purchasing and leasing aircraft is a relatively new venture.

According to PNG Air, this is the first time in Papua New Guinea’s history that landowners have owned and leased aircraft to a major airline.

Kutubu landowners purchase first ATR42

P2-ATU was purchased by a landowner company called Petroleum Resources Kutubu (PRK), which manages equity interests for local communities and provincial governments.

Kutubu, in Papua New Guinea’s Southern Highlands Province, has abundant natural resources including crude oil and natural gas.

Petroleum Resources Kutubu is a subsidiary of Mineral Resources Development Company. MRDC is also PNG Air’s largest shareholder, holding a 15.93% stake in the airline.

MRDC chairman Augustine Mano also serves as chairman of PNG Air.

“This acquisition is both a demonstration and a statement of the strong capability of PRK,” Mano said.

“It redefines how PRK and other subsidiaries within the MRDC group are positioned as partners in the economic development of Papua New Guinea through the provision of air transport.”

Aviation assets seen as long-term investments

One Port Moresby-based commentator said the aircraft acquisitions showed how local landowners are “transforming their resource revenues into high-yielding, sustainable investment portfolios”.

Late last week, PNG Air flew P2-ATU to Moro (MXH) on May 29. Moro Airport, located on the northern shore of Lake Kutubu, serves nearby oil and gas projects.

“To the people of Kutubu and the Southern Highlands - this one is for you,” a PNG Air social media post reads.

PNG Air, which competes with state-owned Air Niugini on domestic routes, strongly emphasises its role as the “people’s airline”.

“We are publicly listed, locally owned, and accountable to this country and its people,” the airline says.

In addition to the remaining ATR42-600 due for delivery, three more ATR72-600s are expected by September. These will take PNG Air’s total fleet to 16 aircraft — thirteen ATR72-600s and three ATR42-600s.

Photos: PNG Air/MRDC
Contact the writer: andrew@aerosouthpacific.com