Papua New Guinea props up Air Niugini

Papua New Guinea’s state-owned Air Niugini is to receive operational funding via Kumul Consolidated Holdings, the holding company of the country’s nine state-owned enterprises. The state aid for the airline was a portion of PGK50m kina (US$14.2m) transferred from the Motor Vehicle Insurance, one of few SOEs in the country that was performing well financially, PM James Marape told local media. This followed a Cabinet decision that MVIL should support Air Niugini, which continued to struggle operationally due to the COVID-19 pandemic, he said. “MVIL was posting substantial yields. KCH will support Air Niugini to ensure the airline is given enough input of liquidity to keep its operations running, as we sail past 2020 and hopefully, that should resuscitate its operations for a better 2021,” Marape said. “The business reform that is currently taking place in Air Niugini will ensure (that) it stands on its own feet and makes a profit again.” <br/>