Transport & Civil Aviation Minister Walter Schnaubelt is calling on Air Niugini to completely settle debts owed to the National Airports Corporation following the recent accumulation of over K120million in monies owed to the NAC.
He said through this year alone the balance of legacy debts and the current charges has accumulated to a significant amount and currently the NAC is in dialogue with ANL management to resolve the outstanding debts.
“As Minister and one of the major trustee shareholders, I express my concern on the continuous delayed payments of these charges that are necessary and critical to maintain safe operations of aircraft operating in respective NAC Airports.”
Schnaubelt stated that given the re-fleeting program of Air Niugini which involves introduction of heavier aircraft, the impact on existing aircraft pavement and passenger facilities will be significant and it is necessary that operators such as Air Niugini and PNG Air make timely payment of the aeronautical charges to sustain safety of aircraft operations into NAC controlled airports.
“I emphasize here again that these charges are mandated under the Civil Aviation Act and are levied on the traveling public and collected by the operators.”
The Minister stressed that the need for operators to timely pay the aeronautical charges in order that these critical services be sustained and there is adequate response to safety and emergency requirements.
Meanwhile, ANG Acting CEO, Gary Seddon has expressed that the Airline is willing to comply settling these outstanding debts and will be working closely with all stakeholders to do so.
“Since being appointed by the National Executive Council as Acting Chief Executive Officer of Air Niugini, I have made it a business imperative to improve the working relationship with all major stakeholders in the aviation industry in Papua New Guinea,” Seddon said.
Seddon made mention that Air Niugini has agreed to pay K38million in final settlement of legacy debts between the parties and apart from that have been paying NAC between K1.3million and K1.5million each week.
According to the CEO, since the commencement of 2023 alone, Air Niugini has paid over K90million to NAC.
“Therefore, to suggest that Air Niugini is in any way delinquent in its obligations toward NAC or any other agency for that matter, is unreasonable.”
He added that despite making payments, the operations of Air Niugini are continually disrupted by the poor state of repair of runways and associated infrastructure, such as security screening scanners and is calling on the NAC to develop its runway program in advance of the aircraft arrival from late 2025 of the latest fleet to cater for larger more robust aircrafts.
Mr Seddon further said both Managing Director and Chief Executive Officer of NAC and Air Niugini respectively, have regular engagements, primarily to ensure that disruption to the traveling public is minimized and that opportunities for mutual beneficial outcomes are maximized.