Air Niugini to build new residential complex

Air Niugini Limited is now taking a step forward to reduce operating costs and make savings, apart from their re-fleeting program.

A new residential complex will be built just adjacent to its head office, which is hoped to deliver significant cost savings. It will accommodate the rotating flight crew and contract staff, both foreign and national, who are currently being accommodated at hotels and costly rented premises.

Chairman of Air Niugini Limited Sir Frederick Reiher says this will enable Air Niugini to bring “in house” at a considerable saving to the airline, industrial laundry and dry cleaning services, which have been outsourced for many years.

He says other facilities, such as the gym and restaurant, will be independently managed and generate revenue to the airline. There will also be a large pool where the mandatory training and certification of the cabin crew will be conducted.

“Presently, these trainings are being conducted in Australia,” Reiher adds.

The building, at a cost of K111 million, will be paid off from the rental savings of K1.6 million per month (K19 million a year) in less than six years and thereafter, be wholly owned by Air Niugini.

The project, along with a number of other steps the Air Niugini board and management have taken, is designed to help ensure the airline remains profitable in a challenging operating environment.

“This is without a question, a prudent commercial decision which is of immediate benefit to the national airline,” says Reiher.

Picture source:

Annette Kora