Boom time for PNG Flights! Tuesday, 19 January 2010 10:11 |

When a country, which is only 35 years old, discovers an important natural resource which will give it a considerable new income source, way in excess of its current revenues, over at least the next 30 years, then you know something will have to change.
When that same small country, with less than 7 Million inhabitants, also has a rapidly growing tourist industry with visitors arriving from all parts of the world to experience one of the most culturally diverse nations on the planet, you know that the change will be reported worldwide.

Also when that same country is one of the poorest members of the British Commonwealth, with one third of the population earning less than £1.00 per day, but enjoying living in close traditional communities and with virtually no private land ownership allowed, then you know that the change will be both dramatic and systemic.

Papua New Guinea, PNG, is about to become the country built on LNG (Liquid Natural Gas).

Within the last decade three enormous Natural Gas Fields have been dicovered in the southern and western highlands of Papua New Guinea. Currently the investment in terms of field development, pipelines, deepwater port facilities and a brand new Natural Gas liquefaction facility near the capital, Port Moresby, is likely to exceed $9.5 Billion. It

is impossible to forecast what changes will occur to the social structures, economic factors or the fragile local environment, but it is clear that Papua New Guinean aviation will have to grow dramatically to keep pace with the development. Currently, flights to Papua New Guinea are the domain of the national carrier, Air Niugini.

This small, developing airline runs a fleet of turboprop aircraft, small jets and two large Boeings. Most aircraft are used for domestic hops and the two Boeings operate on international flights to Australia, Singapore, Hong Kong, Malaysia, Japan and the Philippines. Domestic competition comes from one indigenous private carrier, Airlines PNG, who, as well as serving many domestic airfields, also operate a single international service from Port Moresby to Cairns. Pacific Blue airlines complete the choice with a single international service connecting the capital with Brisbane.

Clearly this is not enough to satisfy the demand that will be created as the development proceeds. Our best guess at the changes that will result, is that there will be a roller coaster effect of increased airfares and a shortage of seats, followed by an increase in services plus larger aircraft, resulting in lower air fares and more competition. A high demand for lower priced seats will be split between local passengers and cost conscious leisure travellers. Business class cabins will be fully booked, particularly on peak flights in and out of Port Moresby for weekends back in Australia or other points in Asia.

In the long term supply and demand will even out, but for those looking for Flights To Papua New Guinea sometime in the next few years, be prepared to pay more or to be very, very flexible as to your dates of travel.