Douglas Air

shuts down

JUST weeks after the other private domestic carrier started cutting ser vices, Papua New Guinea’s second largest third level airline Douglas Airways suddenly closed down, ceas ing services with only a day’s notice to the public. This followed the decision by Talair to close many of its less economic air services around the country.

Douglas Airways’ part-owner, Dennis Douglas, said the decision to shut down the airline was because of financial problems. A provisional liqui dator has been appointed. The other main shareholder is the Government owned Air Niugini.

Douglas Airways has been plagued with loss-making operations for three years. Douglas said Air Niugini had neglected the airline since it took control, saying the national carrier had abandoned the company by pulling out its manager at a critical, thus forcing the move into provisional liquidation. “I am sick and tired of talking to Air Niugini,” said Douglas. “They are supposed to be the 51 per cent owners but they have done nothing for the company.”

He said the Government’s decision in July to allow a 14 per cent increase in domestic air fares had come too late to save Douglas Airways. The airline serviced the smaller centres around Papua New Guinea, providing a feeder service to Air Niugini’s domestic routes.

Meanwhile Talair owner Dennis Buchanan has now promised that Talair will not close its operations in Papua New Guinea as had earlier been feared.

But routes would be cut and some aircraft sold. He said the fare increase showed the Government realised that Talair was providing a service. □