“While lower commodity prices have contributed to many of the economic problems facing PNG and PNG Air, one benefit has been that fuel prices have been low over this period, although they appear to be firming now,” PNG Air’s chief executive officer Muralee Siva said.
“Low fuel prices certainly benefit PNG Air, although those benefits have been off-set by depreciation of the PNG Kina.
“Higher fuel prices will increase the Company’s costs in the short term, but if they lead to more resource industry activity and a strengthening of the PNG economy, they will end up benefitting PNG Air,” Siva said.
He said PNG Civil Aviation and Safety Authority have renewed the company’s air operator’s certificate and Maintenance Organisation Certificate for another 3 years.
“This shows that CASA recognises the strong safety and quality systems the Company has put in place,” the CEO said.