Transport and Civil Aviation Minister Walter Schnaubelt says there has not been any changes nor increase in airport levies and fees, charged by the National Airports Corporation, since 2013, despite inflation and the increased cost of doing business since then.
“For the past 11 years, despite the high costs of operations due to inflation and other economic factors, National Airports Corporation (NAC) has not increased airport levies and charges as it should.”
The Minister was responding to calls made by Member for Bulolo, Sam Basil Jnr, to review and reduce all unnecessary airport levies and charges.
“While we understand the current plight of our people in relation to the rising cost of living, it is also important to understand that airports are complex businesses with massive infrastructure – runways, terminals and security systems – that require constant upkeep and upgrades,” Schnaubelt said.
He explained that the collection of airport charges helps in funding essential services such as baggage handling, airport terminal facilities and services and passenger screening and security, which are important factors in ensuring safety and security for all airport users.
“People should have researched relevant information pertaining to NAC and its responsibility before commenting unnecessarily raising baseless points in the mainstream and social media.”
He noted there’s constant confusion on who is NAC compared to airline companies.
“We have no jurisdictions over airline companies’ operations and fee structures they impose on passengers.”
“The Civil Aviation Safety Authority of Papua New Guinea (CASA PNG), the regulator monitors all compliance issues focusing on safety and security of their operations.”
“Under licenses, NAC is also monitored by CASA PNG on safety and security matters and for the usage of airport facilities.”
“Our levies as of the date of this article sit only at K68 per ticket per passenger,” Schnaubelt clarified.
Minister Schnaubelt further revealed that airline operators owe NAC K150m for usage of airport facilities and debt recovery is ongoing.
“Debt recovery only commenced when I became Minister.”
“At this juncture I thank the Minister for State Enterprises Hon. William Duma and Air Niugini Limited management for their weekly debt reduction instalment and simultaneously, meeting current rental and aeronautical obligations.”
“It’s still a long road ahead for NAC to be financially sustainable.”
Schnaubelt stated that despite the challenges, NAC has remained committed to providing safe and secure operations while maintaining the collection of existing charges for 11 years since 2013.