holdings in Air Niugini

PNG ousts ‘foreign’ holdings in Air Niugini

The PNG Government decided in December to buy out the Qantas and TAA interests in Air Niugini. At the same lime it announced that the Ansett Transport Industries holding in the PNG national airline would be reduced by 25%, with a further review of the Ansett holding at the end of 1977.

The PNG Transport Minister, Mr Bruce Jephcott, said the principal reason for the move, which had been under consideration for some months, was the entry of Air Niugini into the international field, which led to a con flict of interests as Air Niugini and Qantas were competitors. It was not appropriate that future Air Niugini marketing strategy should be disclos ed at commission (National Airline Commission) level to representatives of competing airlines.

The three Australian airlines had representatives on the National Airlines Commission, which controls Air Niugini. Also, the presence of Qantas as an important shareholder in Air Niugini tended to prejudice negotiations for air routes with other governments.

Qantas and TAA each held 12% of the shares in Air Niugini and Ansett held 16%. The decision to buy out TAA and Qantas and reduce the Ansett shareholding meant a cut in the 4-million share issue, which, in effect, leaves Ansett with a slightly bigger holding on a percentage basis.

The decision to retain part of the Ansett holding for the present was to ensure the continued availability of expertise at commission level.

The decision cost PNG about K 1.34 million, of which K 1.15 million went to Qantas and TAA and K190,- 000 to Ansett. Qantas and TAA lost their seats on the National Airline Commission, which controls Air Niugini.

Mr Jephcott paid a tribute to Qan tas and TAA for the contribution they had made to aviation in PNG.

The government’s decision was not greeted with joy in all political circles.

In fact, the Leader of the Opposition, Sir Tei Abal, called the dropping “shameful and shortsighted”. He said the deal was a smack in the face for the Australian Government, which

had done so much for the airline in dustry in PNG.

The decision was also shortsighted because it mean that PNG was dum ping two experienced airline partners while Air Niugini was still effectively establishing itself. The money re quired to buy back the capital could be ill-afforded at present.

It was reasonable to ask where the money was coming from. He did not believe it could be found from Air Niugini’s trading profits, particularly as more than $4 million had been spent in fleet re-equipment.

He continued that Air Niugini was about to enter a new route to Japan.

The expansion was commendable, but the route had not yet been proved viable. In the meantime it appeared most unwise to be spending money unnecessarily to buy back capital.

Philippine Air Lines had an nounced recently it intended to exer cise its option to operate in competi tion with Air Niugini between Port Moresby and Manila. That develop ment pointed to a lack of wisdom in making an expensive change to ownership structure of the airline.

Sir Tei estimated that in recent years the Australian Government had given civil aviation aid valued at more than $ll million to PNG. That was connected with the handover of assets when PNG became independent. To summarily sack the Australian Government shareholding (through Qantas and TAA) in Air Niugini which was only a minor shareholding in the first place was a shameful gesture.

Footnote: The Australian airlines concerned will earn a currency wind fall! because the capital in Air Niugini is in PNG kina. The Australian partners will gain close to another 15% on the deal.

Air Nauru Wants

More Air Space

Air Nauru was interested in open ing up a service to Noumea, Tonga, Niue and the Cook Islands, King Taufa’ahau Tupou of Tonga, said in December. Nauru was negotiating with France and New Zealand for lan ding rights at Noumea and Aitutaki.

The king said Air Nauru proposed to fly from Nauru and call at

Noumea, Tonga, Niue and Aitutaki.

An alternative route would be Nauru, Wallis Island, Tonga, Niue and Aitutaki. Return flights would be over the same route as the outward flight.

He also said that if negotiations were successful, Air Nauru would operate on a cheaper structure than Air Pacific. Of significance to Tonga, the service would give Tongan growers the opportunity to export vegetables to Nauru.

Pal May Fly

To New Zealand

Polynesian Airlines is looking at the possibility of direct flights to New Zealand following discussions on civil aviation matters in Wellington. It was reported from Apia recently that of ficials of the Western Samoa and NZ governments, after the talks, agreed to enter into a bilateral agreement for an exchange of routes for designated airlines.

Mr lulai Toma, Secretary to the Western Samoa Government and Aviation Administrator, who led the Western Samoa delegation, had emphasised early in the talks that the NZ airline could well remain content to service Western Samoa through Pago Pago, and thus had no real need for a bilateral agreement with Western Samoa.

But NZ recognised that Western Samoa had good reasons for wanting a direct service. A condition of NZ entering into agreement is the need to consult other governments affected by Western Samoa’s request.

The designated airlines (Polynesian and Air New Zealand), will now dis cuss how to service the routes suggested by the two governments.

Mr Ted Annandale, chairman of PAL, said it would be some time before PAL could make arrangements for direct flights to NZ.

There will have to be a study of the aircraft needed. The company would consider Boeing 7375, F2Bs, BACII Is and DC9s.

Tuvalu Seeks

A Seaplane Service

Provisional approval has been given for a year’s trial seaplane service operation within the eight islands of Tuvalu, and the government is trying to attract a private firm to come in and launch the service.

The plan is that essential infrastruc ture for the service hangar, slipway, mooring buoys, etc. would be provided under British or Australian development aid, while an

aviation firm would run the service under a revenue guarantee agreement.

Tuvalu’s Commissioner, Mr Tom Layng, first raised the idea of using floatplanes in Tuvalu in 1974. He had served as Chief Secretary in the Falkland Islands and had first hand experience of how two small single engined 5-seater Beavers had successfully solved the difficult com munications problems of a remote and scattered territory.

Britain’s Civil Aviation Authority then did a “desk study”, and conclud ed that seaplane operation in Tuvalu was feasible. This was followed by a United Nations Development Programme evaluation by economist

Walter Yep who said that floatplanes could be the answer to Tuvalu’s com munications difficulties and recommended that a year’s trial be conducted to explore the economic viability of a service.

Six of Tuvalu's islands have neat, sheltered, ready-made “seadromes” in their enclosed lagoons. The two other permanently inhabited islands Niutao and Nanumanga have tidal mangrove ponds which, if a ser vice is successful, might at a later date be cleared to provide landing facilities for a floatplane Cessna or Islander.

None of the islands can spare land for the construction of conventional land aerodromes. The whole country has

less than 10 square miles of terra firma!

At present Tuvalu is served by one old ship, the Nivanga, which has now reached the end of its economic life.

This year, for more than three months, the country had no internal communications of any kind when the Nivanga broke down and was under repair in Suva. With only rudimen tary medical facilities on outer islands, this meant that chances of help for any accident victim or even a simple sufferer from appendicitis were slim. Plans are afoot to replace the Nivanga with a new ship using sails as well as engines.

Quantas Boosts Fiji's

Tourist Trade

The Fiji tourist trade will get a big lift from the allocation of 78,000 seats for Fiji-bound passengers in Qantas aircraft this year. The airline’s capaci ty for Fiji in 1977 is 20% higher than 1976. It has allocated 63,000 seats ex clusively for people flying to Fiji, and another 15,000 seats in jet aircraft calling at Fiji on the way to the US.

Qantas aircraft will now arrive at and leave Nadi at more convenient times. To help fill the 78,000 seats Qantas is stepping up its advertising of Fiji’s virtues as a holiday resort. In addition to the regular services, Qan tas will operate 54 supplementary ser vices for holiday traffic at peak periods of May, August-September and December-January. Qantas studies show that 94% of all Australians carried to Fiji by Qantas had Fiji as their sole destination.

• The Cook Islands will have three air services a week from New Zealand after the Tourist Hotel Cor poration’s new hotel at Rarotonga is opened in April. Air NZ will call at Rarotonga on both outward and return flights on a new Auckland- Honolulu service. At present there are two services weekly between NZ and the Cooks. • Pacific Missionary Aviation, which is part of the Liebenzell Mis sion, has been given permission to operate an air transport network covering district centres and outer islands in Yap, Truk and Ponape in the US Trust Territory. Under an agreement with the TT Government, Pacific Missionary Aviation will provide medical evacuation of patients from the outer islands to dis trict centres.