AiR NIUGINI has been corporatised as a first step towards privatisation, despite a row between the Papua New Guinea Government and its National Airlines Commission (NAC).
There had been fears, that the deadline of 7 August would not be met, after a quarrel over the ownership of the new air line corporation. The NAC had originally planned to hold the whole of the company in trust, but deputy prime minister, Chris Haiveta had decided that he would take 99%, leaving the NAC with only 1%.
Haiveta threatened to dismiss the NAC members when they objected to the deal, and said that the Government "-had not been impressed" at the commission's progress on privatisation. The cabinet, however, rejected Haiveta's plan to take over as NAC chairman.
The haste of the corporatisation has led to speculation that a sale of the airline is imminent. Ansett Australia and the Swire Group, which owns PNG-based Hevilift, have ruled out rumoured links to a deal. Commentators tip Malaysia as a likely source of partners.
Source: Flight International