Studies are underway in how tariffs can be reduced by way of low air fares during the Christmas period around the country.
Several members of PNG Parliament have written to the Public Enterprises and State Investments Minister Sasindran Muthuvel who told Parliament that the studies undertaken was to see how there could be reduced airfares that would not affect the 10 per cent profit that was needed to operate the airline business in PNG.
Tambul-Nebilyer Member Win Dakri asked Mr Muthuvel if travelers travelling to their villages would be travelling on cheaper airfares.
Mr Muthuvel answered that there is no simple answer to this question but we are trying our hardest to bring the price down from various state-owned enterprises.
“More than 40 per cent have come up as NAC (National Airports Corporation) fees and taxes to government, Air Niugini tickets operate less than 10 per cent profit, if we don’t run within the ten per cent budget we cannot run the business.”
“We are trying to renegotiate with Treasury and NAC to bring fees and taxes to be reduced and reduce the fares, I won’t promise to reduce the tariff reductions by this
Christmas.
“But studies are underway, once studies are completed we can announce tariff reductions,” Mr Muthuvel said.
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Several members of PNG Parliament have written to the Public Enterprises and State Investments Minister Sasindran Muthuvel who told Parliament that the studies undertaken was to see how there could be reduced airfares that would not affect the 10 per cent profit that was needed to operate the airline business in PNG.
Tambul-Nebilyer Member Win Dakri asked Mr Muthuvel if travelers travelling to their villages would be travelling on cheaper airfares.
Mr Muthuvel answered that there is no simple answer to this question but we are trying our hardest to bring the price down from various state-owned enterprises.
“More than 40 per cent have come up as NAC (National Airports Corporation) fees and taxes to government, Air Niugini tickets operate less than 10 per cent profit, if we don’t run within the ten per cent budget we cannot run the business.”
“We are trying to renegotiate with Treasury and NAC to bring fees and taxes to be reduced and reduce the fares, I won’t promise to reduce the tariff reductions by this
Christmas.
“But studies are underway, once studies are completed we can announce tariff reductions,” Mr Muthuvel said.
Statement
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