AIR NIUGINI’S REFLEET PROGRAM(“ANLRP”) : A NEW ERA FOR PAPUA NEW GUINEA AVIATION.
January 31, 2025
My Fellow Papua New Guineans, Air Niugini, Papua New Guinea’s national flag carrier, is embarking on a transformative journey with its Refleet Program, marking the largest capital expenditure in the country’s aviation sector. This long overdue initiative is set to revolutionise air travel in Papua New Guinea and strengthen the airline’s position in the Asia-Pacific region.
Special Acknowledgements
The ANL RP has been made possible by the Marape/Rosso Government led by our Prime Minister Hon. James Marape and portfolio minister, Hon. William Duma, Minister for State Enterprises. I thank our government and our shareholder, Kumul Consolidated Holdings. It would be remiss of me not to mention the unwavering commitment made by Hon. Ian Ling-Stuckey, Treasurer, to the ANLRP.
I also take this opportunity to thank our development partners for funding the ANLRP, namely, Asian Development Bank (ADB), Export Finance Australia (EFA), United Kingdom Export Finance (UKEF), United States Exim Bank (EXIM) and aircraft lessor, Azorra. Their collective belief in our national flag carrier has been nothing short of overwhelming and humbling.
Fleet Modernisation
The Refleet Program will introduce state-of-the-art aircraft to replace the aging Fokker fleet that has served ANL well to date and the leased Boeing 737-800s and Boeing 767-300s:
• Airbus A220-300: The first aircraft will enter service in September 2025, coinciding with Papua New Guinea’s 50th Independence Anniversary. Two more A220-300s will be introduced in the last quarter of 2025 and first quarter 2026, replacing a similar number of Fokker aircraft.
• The new A220-300 will ensure compliance with industry and regulatory obligations and enhance Air Niugini’s operational flexibility, allowing it to serve domestic routes during the day and international routes at night.
• Airbus A220-100: Eight A220-100 aircraft are scheduled for entry into service between 2026 and 2028, gradually phasing out the Fokker fleet and replacing the leased Boeing 737-800 aircraft.
• Boeing 767-300: With respect to the wide body aircraft, the presently leased Boeing 767-300s will exit ANL service in 2026 coinciding with lease expiry date. ANL and Boeing are jointly exploring aircraft bridging options while a permanent wide body fix is continually being evaluated to enhance operational capacity and increase revenue. An announcement will be made in the coming weeks.
• Boeing 787-8: NEC approved the purchase of 2 B787-8. However, changing circumstances has compelled ANGL to review the purchase of B787-8.
Investment in Infrastructure and Training
Air Niugini is not only investing in new aircraft but also in crucial infrastructure and comprehensive training programs. This includes:
• Extensive training for pilots, engineers, technical crew, cabin crew and ground staff.
• Upgrading vital infrastructure to support the new fleet.
Benefits of the Refleet Program
1. Improved Passenger Experience: The new aircraft will offer spacious cabins and modern amenities, significantly enhancing the
flying experience.
2. Expanded Network: The A220 has the capacity to carry between 113 and 138 passengers and will enable Air Niugini to connect Port Moresby with new destinations across the Asia-Pacific region.
3. Environmental Sustainability: The A220 fleet boasts advanced technology and eco-friendliness, resulting in lower emissions.
4. Operational Efficiency: The new fleet will improve Air Niugini’s capacity and reliability throughout its domestic and regional network, at 30% less operating cost – savings that will be passed onto our customers.
Economic Impact
Air Niugini has been a cornerstone of connectivity in Papua New Guinea, linking remote regions to urban centers and facilitating both domestic and international travel. The airline has contributed significantly to various sectors, including but not limited to tourism, trade, agriculture, fisheries and extractive industries such as mining, oil and gas.
With the new fleet, Air Niugini is poised to further boost these sectors, particularly tourism, by showcasing Papua New Guinea’s rich culture, stunning landscapes, and biodiversity to international visitors.
Conclusion
The Air Niugini Refleet Program represents a significant milestone for Papua New Guinea as it celebrates its 50th year of independence. This investment in modern aircraft and infrastructure demonstrates the country’s commitment to progress and its vision for the future. As Air Niugini prepares to carry the nation for another 25 years, it stands ready to elevate Papua New Guinea’s aviation sector to new horizons.
As Chairman of Air Niugini, it is my greatest honor to deliver this most critical investment for our country. On behalf of the Air Niugini Board, Management, staff, and our shareholder – Kumul Consolidated Holdings, thank you all for being a crucial part of our journey.
Approved for release by:
Karl Yalo
Board Chairman, Air Niugini Limited