PNG relaxes

aviation rules

ANY international airline which wishes to operate charter flights into Papua New Guinea will be free to do so under new civil aviation regulations, and Port Moresby, Nadzab and Wewak will be open to international air charter operators. 1 he radical new policy, which changes the entire groundrules for aviation poli cy in Papua New Guinea, was announced in Parliament by Civil Aviation Minister Bernard Vogae. The government wants to generate a more independent and

economically viable aviation industry,

boost business and promote tourism. Un til now, the country has had a highly controlled civil aviation industry with considerable powers residing with the minister of the day.

I he new policy provides for greater domestic and international competition, removal of government control of air lares, direct access for international air charter companies to the above mentioned three entry ports, encourag ing localisation of the aviation industry, subsidies to rural opeators and the con version of the Civil Aviation Department into a commercial statutory body.

Initially, only half the trunk routes within Papua New Guinea are to be de regulated to allow airlines, including Air Niugini and Talair, to adjust gradually

to the changes, but all rural routes will be thrown open to competition.

Fares will be left to the market forces; the government wants to see fares drop and has indicated it will re-enter the in dustry to control fares if they do go too

high. Existing foreign-owned airlines

must increase local ownership, and all new operators will be required to have a local shareholding. Meanwhile, the gov ernment will be moving to reduce the number of foreigners working in the air line industry in Papua New Guinea by

seeking help in training from Singapore.

The most immediate change will be the ability of private companies, such as Talair and Douglas Airways, to compete with Air Niugini on routes where the national carrier has had a monopoly. □