Alan Milne

The profit was announced at the end of the 2019 financial year; a historical turning point for the national airline as they undertook a massive transformation.

Although the operating profit is only K500,000, the achievement is off the back of a loss of K133 million the previous financial year.

This impressive turnaround follows the implementation of significant initiatives including the Higher Altitude program that reviewed the business’ cost control, revenue opportunities, customer service improvements and operations.

Air Niugini Managing Director, Alan Milne during the signing of the agreement on Tuesday 18^th February said the negotiations and discussions were based on tough, prevailing economic circumstances which not only had an impact on Air Niugini, however also other airlines in the region.

Mr Milne said improvements to staff travel and cargo rebates are additional privileges granted as a token of the management’s appreciation and recognition to all staff who continue to show commitment and loyalty.

Managing Director, Alan Milne, said this in response to questions from the media about any potential strike action taken by staff during the peak period of operations.

Air Niugini and the union body representing staff, the National Airline Employees Association (NAEA), have recently made headlines regarding negotiations on terms and conditions of staff.

The issue in focus relates to the ‘Industrial Awards’ or Employment Terms and Conditions of NAEA Members.

The CEO said this during a media conference on Friday, June 14^th, announcing the airline’s plans to enter the Cairns to HongKong route, which current operator Cathay Pacific will cease operating in October.

Milne told the Cairns community that Air Niugini is ready and able to operate the route.

Managing Director, Alan Milne, said the airline will be focusing on its domestic product as it aims to become more competitive.

During his presentation to the POM Chamber of Commerce, he revealed that loss-making routes would be suspended.

He announced that Townsville, Denpasar, Shanghai and Tokyo flights were affected by this.

Managing Director Alan Milne said the airline has to make tough decisions to ensure it gets back to being a profitable company.

Speaking at the Port Moresby Chamber of Commerce and Industry Breakfast recently, Milne said it was unsustainable to continue to operate loss making routes.

A number of international routes have been put on hold due to the impact on the business.

Managing director Alan Milne said 2018 was a tough year for the national flag carrier with substantial losses at the back of softening revenue and poor performance.

Milne said among the factors affecting Air Niugini’s performance were the Dash 8 aircraft burning in Mendi, Southern Highlands Province; the P2-PXE Boeing 737-8BK crash in Chuuk; and several loss making routes.

Milne said the state company has initiated a transformation program called ‘Higher Altitudes’ which aims to control cost, enhance revenue, develop staff and operational and customer excellence.

PX CEO, Alan Milne, said the first two will arrive before the end of 2020 and the other two in 2021.

He made the announcement at the Port Moresby Chamber of Commerce & Industry Breakfast event yesterday.

The announcement by the Air Niugini CEO comes in the wake of the Ethiopian Airlines 737 MAX 8 aircraft crash killing all passengers and crew on board.

The incident has seen the grounding of 737 MAX 8 aircrafts by major airline companies around the world.