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AIRLINES PNG EXPANDS WHILE BOASTING STRONG FINANCIAL POSITION

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MEDIA RELEASE – 17th AUGUST 2010 - AIRLINES PNG EXPANDS FLEET & COMMENCES ATR OPERATION FOR LIHIR GOLD

Airlines PNG announced today an expansion to its fleet with a state-of-the art ATR 72-500 aircraft which later this week will commence charter operations for Lihir Gold Limited (Lihir Gold), one of PNG’s leading resource companies.

The ATR aircraft has been acquired on wet lease from Malaysian carrier Berjaya Air Bdn Shd (Berjaya Air) for a minimum two year period and will eventually operate with Airlines PNG flight crew who have undergone extensive training on this new aircraft type.

“In a Papua New Guinea first, the ATR 72-500 will operate charter flights exclusively for Lihir Gold ferrying staff and freight between Cairns and its mine site on Lihir Island in the New Ireland province of Papua New Guinea,” said an Airlines PNG spokesman.

Commencement of ATR operations represents the culmination of months of effort in rolling out a custom designed solution for Lihir Gold.

“We knew Lihir Gold was seeking alternative options to the Dash 8 capacity which Airlines PNG currently provides, so we decided to investigate the larger ATR 72-500 as a possibility,” said an Airlines PNG spokesman.

The ATR 72-500 is the stretched version of the latest generation ATR aircraft family normally with capacity for up to 74 passengers.

However, with specific configuration changes requested by Lihir Gold to provide enhanced passenger comfort and freight capability, the Airlines PNG ATR 72-500 will operate with a capacity of 44 passengers and two tonnes of freight and baggage.

“Introducing this new aircraft type into PNG and particularly the Cairns – Lihir Island route has not been without its challenges. Thankfully these have now been overcome through the collaborative efforts of numerous stakeholders including Airlines PNG, Berjaya Air, Lihir Gold, ATR and relevant regulatory authorities.”

Introduction of the ATR 72-500 comes amid other capacity enhancements to the Airlines PNG fleet in 2010.

“By the end of August Airlines PNG expects to have increased its fleet size by 40% over the previous 12 month period. This not only includes the ATR 72-500, but also the addition of two Twin Otter aircraft (one unit purchased from Air Vanuatu in June and the other unit coming back on line following an overhaul and restoration), and another three Dash 8 aircraft which have been on lease to Skytrans and will be returned ahead of schedule,” said the Airlines PNG spokesman.

In January 2009, the Airlines PNG Group had entered into agreements with Skytrans Pty Ltd (an Australian airline wholly owned by the family interests of Simon Wild, Airlines PNG Chairman) for the lease of three Dash 8 aircraft each for a two year term. While all transactions were independently assessed and subsequently approved by the Airlines PNG Board as representing fair value to the company, due to the increased capacity requirements Airlines PNG is experiencing, it has negotiated the early return of each aircraft to meet the demand. The last of which is expected to arrive in late August.

The Airlines PNG spokesman concluded, “With the level of market opportunities currently presenting themselves in PNG, capacity remains a significant challenge for the airline and will continue to be as such well into 2011 and beyond.”

For further information contact:

Danae Jones – Media Relations - In Touch Media – +61 409 346 599 – email: danae@intouchmedia.com.au 

 MEDIA RELEASE – 11th AUGUST 2010 - KOKODA ACCIDENT ANNIVERSARY

Today marks the first anniversary of the crash of P2-MCB in the Kokoda area and is a very sombre occasion for Airlines PNG staff and families of the victims.

“We all lost friends, loved ones and colleagues in the crash this time twelve months ago, and today we are all still very much mourning their loss. Our thoughts are with the victims’ families today and always,” said Simon Wild, Airlines PNG Chairman.

The investigation into the crash is still continuing and a full report is expected to be handed down soon from relevant authorities.

 MEDIA RELEASE – 12th JULY 2010 - AIRLINES PNG INVESTS PGK 6 MILLION TO INSTALL STATE-OF-THE-ART AVIONICS EQUIPMENT

The Airlines PNG fleet of Twin Otter (DHC-6) aircraft will undergo a massive avionics upgrade in the coming months as part of the Airline’s ongoing commitment to passenger safety in one of the world’s toughest flying environments.

This PGK 6 million investment will take the Twin Otter fleet to a whole new level, far exceeding all industry standards and safety requirements. Under the new technology the fleet will meet ‘next generation’ flight deck standards.

Airlines PNG is currently in discussions with the Civil Aviation Safety Authority of Papua New Guinea (CASA PNG) and avionics manufacturers to finalise the product requirements.

The new flight deck will include the latest technology synthetic vision system providing both pilots on board with an accurate three dimensional picture of terrain around the aircraft, even in cloud or at night.

“There is no doubt the rugged terrain in which our pilots fly in presents them with daily challenges, being that PNG is one of the most difficult destinations to fly in. Until now our aircraft have exceeded safety standards and guidelines, but under the new system each aircraft will be given a further avionics boost which will give pilots a whole new suite of capabilities,” said Bruce Alabaster, Airlines PNG Chief Operating Officer.

These enhancements will mean Airlines PNG’s Twin Otter aircraft are fully fitted with the most modern equipment available. The avionics will also be upgraded to include dual latest standard Global Positioning System units which will avail the aircraft with 18 new approaches within Papua New Guinea, mainly at airfields where there is presently no approach available in bad weather.

Airlines PNG is in discussions with CASA PNG to finalise specifications for the installation of an approved form of Enhanced Ground Proximity Warning into the Twin Otter fleet as well. This follows the successful installation of this equipment into the Airline’s Dash 8 (DHC-8) fleet.

“To date, no aircraft in the world equipped with this system has been lost due to controlled flight into terrain,” Mr Alabaster said.

In addition, Airlines PNG will soon install Quick Access Flight Data Recorders in each of its Twin Otter and Dash 8 aircraft.

“These recorders are already in use by a number of major airlines such as Qantas, Emirates and Air New Zealand. They allow for enhanced monitoring of aircraft flight parameters providing the opportunity for active continuous improvement,” Mr Alabaster said.

On top of these initiatives, Airlines PNG has also implemented a number of other safety measures such as amended higher airfield standards.

According to Bruce Alabaster, “Papua New Guinea remains a very challenging aviation environment to operate in. We have some of the toughest terrain and weather conditions in the world and, in many rural areas, infrastructure has not always kept up with the demands of modern aviation. Aviation remains a keystone in the development of PNG, both economically and socially. Airlines PNG remains committed to constantly reviewing its operations with a view to ensuring it has the safest Twin Otter operation in the world which is no small challenge in the context of the environment in which we operate.”

“Despite the ever present rugged conditions we face flying in this territory we are committed to providing a safe and necessary service for the people of PNG and those visiting for business and pleasure. An investment of this magnitude in avionics just shows how committed we are to delivering this and going above and beyond what is required,” he said.

For further information contact:

Danae Jones – Media Relations - In Touch Media – +61 409 346 599 – email: danae@intouchmedia.com.au 

 MEDIA RELEASE – 31st MAY 2010 - NOTICE TO POMSOX - RETIREMENT OF DIRECTOR

Airlines of Papua New Guinea Limited (POMSoXCode: CGA) advises that Mr Paul McLaren retired as Director at today's Annual General Meeting of the company.

MEDIA RELEASE –20THMAY 2010 -AIRLINES PNG SIGNS AIR SERVICES DEAL WITH ESSO HIGHLANDS LTD ON PNG LNG PROJECT

Airlines PNG today confirmed that it has formally signed an agreement to provide dedicated air services to Esso HigWands Limited (EHL), operator of the PNG LNG project.

Under the agreement Airlines PNG will provide EHL a dedicated De Havilland DHC 8-103 ("Dash 8") aircraft for the transportation of field personnel and freight within PNG to support the PNG LNG project. The aircraft, which normally seats up to 36 passengers, will also be available to provide medivac operations to Port Moresby and Australia.

"We are excited by the opportunity to be involved with EHL on this project and look forward to a mutually beneficial relationship throughout the contract term," said an Airlines PNG spokesperson.

The air services are planned to commence in early June under a two year arrangement with an extension option of an additional twelve months. Domestic services will operate between Port Moresby, Gobe, Tari and Moro.

The spokesperson added, "The market for air charter services is rapidly expanding in PNG largely as a result of the activities related to the LNG project. Airlines PNG is now strategically focussed on securing this work which will deliver the base for steady future growth of the company".

For further information contact:

Danae Jones - Media Relations - In Touch Media - +61 409 346 599 - email: danae@intouchmedia.com.au

MEDIA RELEASE – 7TH MAY 2010 - AIRLINES PNG HELP SECURE HERCULES AIRCRAFT FOR LNG PROJECT IN PNG

Airlines PNG announced today that it has formed part of a successful contract to service on-going heavy and outsized cargo transport throughout Papua New Guinea to prepare for the escalating construction works taking place on the LNG project.

"The movement of heavy and outsize cargo is a project that has been made possible through the collaborative efforts of a variety of key stakeholders, so we are very excited to be finally able to announce to the public that we are part of the successful team chosen to undertake this Expedition."

"The supply of this type of cargo by air to remote locations in PNG is instrumental in building the fundamental resources required to implement the LNG project. It is also designed to reduce the burden on the country's main highways," said an Airlines PNG Spokesperson.

The aircraft type which will be used to carry the cargo will be a special civil Hercules, brought in especially from Anchorage, Alaska under an arrangement with operator Lynden Air Cargo (Lynden) and Adagold Aviation (aviation broker based in Australia).

The multi-tiered deal was arranged by Adagold Aviation over the last 18 months and was struck amongst all interested parties to achieve the best and most cost-effective outcome for the end user client which has won key infrastructure works on the LNG Project.

The cargo will be transported from sea port facilities in Lae onto Tan and Moro in support of the construction camps being built.

Lynden will operate the aircraft under the operational surveillance of Airlines PNG to ensure that all PNG rules and regulations are followed. The aircraft will also be available to move urgent cargo needed by other Papua New Guinea based LNG partners.

The aircraft will service numerous airfields in PNG over the coming months. Airlines PNG will also be performing ground handling services in these locations.

Lynden is an Alaskan company with a strong relationship with Airlines PNG and is highly regarded for performing operations such as this worldwide.

"Together, Airlines PNG and Lynden will play a crucial role in servicing the partners as they work closely with the regulatory bodies to allow the foreign registered aircraft to operate in PNG and achieve the movement of this very important cargo in a timely manner," an Airlines PNG Spokesperson said.

First flights commenced from Nadzab Airport in Lae last month to mobilise much needed operational equipment.

"This project is history in the making for the PNG nation and we are proud to be playing a key role in building the future of the country."

For further information contact:

Danae Jones - Media Relations - In Touch Media - 0409 346 599 - email: danae@intouchmedia.com.au 

 MEDIA RELEASE – 12THMARCH 2010 -AIRLINES PNG TO HOST ATR 72-500 VISIT

On 15 March Airlines PNG will host European regional aircraft manufacturer ATR for a two day visit as it demonstrates the new generation ATR 72-500 aircraft to Airlines PNG and a number of the company’s resource industry clients.

The ATR visit will initially involve a demonstration flight followed by an inspection of the aircraft by local dignitaries in Port Moresby.

This will be followed by additional demonstration flights for various clients as the aircraft visits other airfields throughout Papua New Guinea.

Airlines PNG is currently in negotiations to secure ATR 72-500 capacity for its charter routes. These negotiations remain to be finalised and are also subject to regulatory approval. Airlines PNG will further update the market on these matters as they develop.

The ATR 72-500 is the stretched version of the latest generation ATR aircraft family with capacity for up to 74 passengers, though configuration changes are possible in order to meet the specific requirements of the company’s clients. The ATR family is known for its versatility and capability to operate even in difficult environments and from short airfields making it an ideal choice for operating conditions in Papua New Guinea.

ATR is currently the most widespread regional aircraft family with more aircraft in service with more operators than any competitor.

Airlines PNG regards the ATR 72-500 as an exciting prospect for the aviation market in Papua New Guinea and, with its new technology and on-board comfort, can only serve to enhance the company’s product offering to corporate charter clients and the travelling public.

 MEDIA RELEASE – 4TH FEBRUARY 2010 - GOILALA AND KOIARI SERVICES

Airlines PNG regrets to advise that due to safety concerns regarding the standard of the airstrips at Onogue and Fane (both in the Goilala area), the Airline has been forced to indefinitely suspend flight services to these two destinations with immediate effect.

This decision follows on from an earlier airstrip review that also resulted in AusAID and Airlines PNG deciding to suspend services to Manari, Efogi, Kagi and Milei in the Koiari area.

Airlines PNG continues to engage with relevant authorities with the aim of upgrading these airstrips to ensure they each meet the minimum standard for the Airline’s operations and, accordingly, a resumption of services.

Airlines PNG confirms that both scheduled and charter services to Kokoda, Tapini and Woitape remain unaffected.

The Airline further acknowledges disruptions which have occurred in recent weeks to flights to and from these and other destinations in the domestic network.

These disruptions have largely been a result of the heavy wet season and its consequent impact on the Airline’s schedule.

Airlines PNG expects similar disruptions for the remainder of this month until weather conditions improve. 

MEDIA RELEASE – 3RD FEBRUARY 2010 - AIRLINES PNGON BOARD WITH OUR NRL BID

Airlines PNG today announced their official airline sponsorship and partnership with the PNG NRL Bid, strengthening the bid’s position to secure an NRL licence.

Airlines PNG has been operating since 1987 and is owned by the people of Papua New Guinea. The airline services more domestic ports in Papua New Guinea than any other airline and is expanding rapidly. It has demonstrated its staying power, and the development of this partnership will help ensure the peoples dream to have a PNG NRL team.

Airlines PNG Chief Executive Officer, Gary Toomey said, “We fully support this great ‘National Impact Project’ of the Papua New Guinea government and are proud to be a part of a sporting initiative that so many people in Papua New Guinea will enjoy”

Airlines PNG will carry the Bid message throughout PNG and beyond and enable the Bid Team’s rugby league identities and the community development team to work extensively in all communities around the nation.

The Bid’s General Manager Bev Broughton said, “We are very pleased to have an airline partner that will carry the flag internationally and throughout PNG as we focus on reaching out to communities nationwide. The PNG NRL Bid is for everyone and Airlines PNG can connect us to everyone.”

Minister Philemon Embel, Minister for Sports and Minister for State assisting the Prime Minister also welcomed Airlines PNG to the sponsor family, “Key PNG companies have been invited to support the Bid and I am delighted that Airlines PNG has come on board in a partnership that will see a strong Papuan New Guinean company exposed on the international stage in unison with our bid for an NRL licence”.

MEDIA RELEASE – 17TH SEPTEMBER 2009 - AIRLINES PNG APPLIES FOR TRAFFIC RIGHTS TO ASIA

Airlines PNG announced today that it has applied to the PNG Department of Transport for traffic rights to a number of Asian cities.

Airlines PNG, as part of its vision for the next two years announced that it viewed continued expansion both domestically and internationally as integral to the Company’s vision. Associated with this is a review of access to equity that would allow for a significant expansion of capacity to meet expected charter growth opportunities within the region, and for further domestic RPT expansion.

Airlines PNG’s CEO, Mr. Gary Toomey stated “We have received great feedback from the PNG public on the impact our presence has had on both international and domestic markets in both driving airfares down, and delivering the levels of service the travelling public expect. We believe that all of PNG deserves the same”. He also advised that “At a time where most of world aviation was under considerable stress, and where IATA had recently announced it expected increased losses from airlines in the Asia/Pacific region, many people see PNG as a significant growth opportunity”.

These moves follow on from the Company’s success over the last two months in being awarded three additional corporate contracts. Mr Toomey stated “These contracts are a testament to the great team we have at Airlines PNG. We have also identified additional opportunities in the very near future” He acknowledged that “whilst 2009 had been challenging, present forecasts indicated investors could expect a substantial improvement in 2010. Tied with a strong balance sheet and a gearing ratio well below the aviation industry average, he said Airlines PNG was well positioned to take advantage of the strong growth opportunities expected over the next 18 months”.

The CEO was noted as saying “We will soon complete the assembly of a world class management team, which with the right vision is critical to any organisation’s success.

Both the talent we already have on board, and those we expect to join us soon, allow for a renewed focus on customer service and On-Time-Performance. Part of this has included a significant on-going engineering investment in both upgrading our DHC-8 fleet, and completing heavy maintenance well ahead of schedule so as to ensure reliability and to position ourselves for next year. As we own the fleet this work has a direct positive impact on the balance sheet. We also expect to announce soon, some exciting new enhancements both to the Velocity Frequent Flier scheme, of which Airlines PNG is a partner and other offerings both for the corporate and frequent leisure traveller. These will especially be aimed at the PNG people, underwriting us as the airline owned directly by the people of PNG”.

Mr Toomey stated that ‘the moves Airlines PNG were making were to ensure the long term sustainable future for the aviation sector in PNG and also to position PNG, as the largest of the Pacific nations , to be able to take advantages of the aviation opportunities that we expect to avail themselves across the region in the short term”.

EXECUTIVE APPOINTMENT – 23RD JUNE 2009 – CHIEF EXECUTIVE OFFICER – GARY TOOMEY

It is with pleasure that I can announce the appointment of Mr Gary Toomey as Airlines PNG’s new Chief Executive Officer.

Mr Toomey's previous position was as president and CEO of the Air New Zealand group, with annual turnover of NZ$8 billion, 26,000 employees and over 200 aircraft.

Since leaving Air New Zealand Mr Toomey has managed his own consultancy business which serviced regional and domestic airlines in developing countries in the Asia region as well as consulting with one of the largest hospitality groups in the world.

Prior to joining Air New Zealand Mr Toomey served as Deputy Chief Executive Officer, Chief Financial Officer and Executive Director at Qantas Airways Ltd. In this role Mr Toomey had overall responsibility for the operations, subsidiaries and finance of the Qantas Group. Mr Toomey also spent three years as a non-executive director of the ANZ Banking Group.

Gary will join the company as we focuses on the next stage of our development including the implementation of strategies to grow the airline by consolidating markets, acquiring Operators in the region and through organic growth of its charter and regular public transport operations.

We are delighted Gary has joined the group given his extensive aviation knowledge and skills and we believe we have selected the right individual to take the airline to the next level of growth.

In Port Moresby today to meet key stakeholders, Mr Toomey stated:

“I am excited to join Airlines PNG at a time when the PNG aviation market is moving into a phase of rapid expansion. Whilst the global aviation market is in turmoil the opportunity to build a world class aviation group in the Asia Pacific region is a once in a life time opportunity.”

Gary is married with one daughter and takes up his role on 3rd August 2009.

I am sure all at Airlines PNG will join with me in welcoming Gary to the Airlines PNG team. Your encouragement and assistance to Gary as he settles in to his new position will be very much appreciated.

Simon Wild

Chairman

 MEDIA RELEASE – 25TH JUNE 2009 - AUSTRALIAN HIGH COMMISSION PORT MORESBY – AUSTRALIA AND AIRLINES PNG GET KOKODA FLIGHTS ON TRACK

Weekly scheduled flights to four airstrips along the Kokoda Track will have a major impact on the lives of people in Track communities says Head of AusAID in PNG, Bill Costello, following today’s signing of an agreement between the Australian Government and Airlines PNG.

Airlines PNG will fly to Manari, Efogi, Kagi, and Milei on a weekly schedule, beginning on 10 July, that will ensure people and goods are able to move in and out of local communities.

The Australian Government is providing K374,000 to subsidise the flights for the first twelve months as one of the initiatives agreed between the PNG and Australian Governments under the Joint Understanding on the Kokoda Track and Owen Stanley Ranges signed at the 2008 Ministerial Forum.

“This is a great outcome for communities along the Track,” said Mr Costello.

“One of the greatest challenges facing Track communities is the walking time and the rugged terrain between them and outside services and facilities. These flights mean that people who need to get to hospital, for example, will no longer need to walk.

“It also opens up greater income earning opportunities for people in the Track corridor.” Mr Costello explained that the idea for a subsidised flight program followed extensive consultations with communities, PNG Government agencies and the tourism industry.

Head of Airlines PNG Commercial Operations and Charter, Allen Tyson, said that the nature of PNG’s geography means that air transport is the only realistic option for remote communities.

“We are very pleased to be working with the Australian Government on this program and with the subsidy we will be able to offer one-way fares at around K130.

“This is a very affordable fare which will open up air travel to many of the people in those communities.”

Mr Costello said the flight subsidy program was intended to stimulate community and economic development, making it more attractive for the operator to run a regular service along the Track. The ongoing need for a subsidy program, and any further commitment by the Australian Government, will be evaluated after twelve months.

Airlines PNG will initially offer two scheduled flights from Port Moresby on Fridays. One will leave at 8am and fly to Manari and Efogi before returning to Port Moresby by 9.20am.

The other flight will depart Port Moresby at 9.30am and fly to Kagi and Milei and return to Port Moresby by 10.50am.

The flights will use a 19 seat Twin Otter aircraft.

Under the Joint Understanding on the Kokoda Track and Owen Stanley Ranges, the Australian Government has committed $14.9 million to assist the PNG Government to improve the livelihoods of local communities along the Kokoda Track and to establish effective management arrangements to protect the Track and deliver increasing benefits to local people.

Media Inquiries: Jacqueline Smart AusAID Public Affairs 325 9333 ext 216

 MEDIA RELEASE – 23RD JUNE 2009 – SIMBERI GOLD MINE

Airlines PNG proudly announced yesterday that they signed a three (3) year contract with Simberi Gold Mine which will commence on Monday 29 June 2009.

The multi million Kina contract is for the supply of a 19 seater Beach 1900D aircraft to operate both International and Domestic Services for the Simberi mine in the New Ireland Province.

The aviation service will provide Simberi Mine with reliable air services to move employees and freight efficiently to and from the Island and ultimately minimise any potential delays to its operation.

The contract combines and centralises all Simberi’s aviation requirements under one roof. Operationally and logistically, this is a sound decision and ensures less chance for delays in crew change and / or freight to and from the Island.

The Airlines General Manager Contracts and Charters, Mr Allen Tyson, said after the contract was signed “This is a landmark day not only for Airlines PNG but also for Simberi Mine”.

He went on to say “Securing this contract extends Airlines PNG’s portfolio out to six (6) major contracts within PNG and puts Airlines PNG at the fore front of fixed wing operators providing safe, consistent and reliable aviation services in support of the mining community within PNG. We are currently actively looking for additional contract work not only here in PNG but throughout Asia Pacific and the South Pacific region”…

Initially established in 1987, today the airline operates an all Bombadier de Havilland fleet of Dash 8, Dash 6 and Beech 1900D aircraft totalling approximately 20 aircraft.

The airline provides both regular passenger transport services to the public and fixed schedule charter services to mining and petroleum resource projects in Papua New Guinea. It provides numerous daily services between Cairns and various Papua New Guinea ports, a number of destinations in Papua New Guinea and services between Port Moresby and Brisbane in code share with Virgin Blue.

 PUBLIC NOTICE - TUESDAY 20th MAY 2008 - AIRLINES PNG IS GOING PUBLIC!!

Would you like to own shares in one of PNG’s major airlines? Airlines PNG has applied for listing on POMSoX and is the first PNG airline to allow the public to purchase its shares. At a price of PGK1.00 per share, applications for shares close at 4:30 pm on 6 June, 2008.

 PUBLIC NOTICE - THURSDAY 14THJUNE 2007 - NON-ACCEPTANCE OF POLITICAL CHARTERS

PORT MORESBY, PAPUA NEW GUINEA

Airlines PNG wishes to advise the public of a recent decision taken by its management in the best interests of its crew and ground staff – to ensure their safety and to protect its aircraft from loss or damage.

With immediate effect - Airlines PNG will not operate aircraft charter services that in its opinion are to be used for political purposes associated with the upcoming national elections.

This action will remain in force throughout the election period and for some weeks following. The airline will advise when the embargo has been lifted. 

 PUBLIC NOTICE - THURSDAY 14THJUNE 2007 - TEMPORARY SUSPENSION OF AIR SERVICES

PORT MORESBY, PAPUA NEW GUINEA

Airlines PNG wishes to advise the travelling public that, with effect from Monday, 25th June, regular passenger services to the following airports and airstrips will be temporarily suspended until further notice.

The airline’s management deeply regrets that this action has to be taken. It has become necessary due to circumstances largely beyond the airline’s control and which have placed abnormal demands on Airlines PNG’s crewing arrangements for its complete domestic network and charter operations. Unfortunately, this situation is continuing for much longer than expected and we are unable to forecast when it might end.

As a result, over the past two months the airline has experienced flight disruptions and cancellations that have been very costly and have caused inconvenience to our international and domestic customers. Airlines PNG can no longer absorb the large costs associated with those cancelled and disrupted flights and additionally the loss of charter opportunities. The only way in which those difficulties can presently be relieved is by reducing services to marginal destinations.

The airports and airstrips into which Airlines PNG will not operate until further notice are:

Q Goilala Airstrips with the exception of Woitape

Q Central Province Airstrips with the exception of Kokoda

Q Northern Province Airstrips with the exception of Tufi

Q Milne Bay Province Airports with the exception of Gurney, Misima and Losuia

Q Gulf Province Airports with the exception of Kerema and Kikori

Q Western Province Airports with the exception of Balimo, Daru, Kiunga, Lake Murray, Obo, Suki and Tabubil

Q Western Highlands Province Airports with the exception of Mount Hagen and Porgera.

Q Morobe Province Airports with the exception of Nadzab

Q Madang Province Airports

Q East and West Sepik Province Airports

Q Southern Highlands Province Airports with the exception of Moro, Gobe and airports served by corporate shuttles.

Q Chimbu Province Airports

Q Bouganville Autonomous Government Airports

Notes:

Airlines PNG may be contacted to arrange for charter services for the carriage of passengers and/or freight to affected ports on an ad hoc basis and these will be accepted subject to the availability of both aircraft and crew

No cargo intended for discontinued operations will be accepted by any Airlines PNG bases or agents for uplifting after Friday, 22nd June 2007 and Airlines PNG will not be responsible for damages to or non-delivery of any cargo lodged after that date – except where charter flights have been arranged.

At this stage it is not expected that existing contracted charter services will be affected.

Airlines PNG sincerely hopes that it will be able to resume normal operations to the affected ports in the near future. Further notices from the airline will be issued from time to time to inform the public concerning this temporary suspension of some services.

POST COURIER - WEDNESDAY 20TH SEPTEMBER 2006 - WOMEN TAKE TO THE SKY

Women who like the idea of becoming pilots should look at this picture. It shows a first in Papua New Guinea, a high capacity licence flight operated by an all female crew. The women piloted the Airlines of PNG Dash 8 aircraft taking Australian High Commission staff to Goroka for the famed annual show in the Eastern Highlands capital. Pictured are Captain Bona Kipalan-Yasi (shown in article on left) and First Officer Hagar Kuliniasi. Captain Kipalan-Yasi has been flying as a skipper for a couple of months after having been checked through the checking and training system.

MEDIA RELEASE - THURSDAY 12TH OCTOBER2006 - 1st ANNIVERSARY CAIRNS SERVICES & PRE-XMAS SALES

It’s nearly one year since Airlines PNG commenced its first international passenger services - to Cairns in Far North Queensland - in November 2005.

Mr Simon Wild, the airline’s CEO; proudly announced: "The first anniversary of introducing our international flights is an exciting event and to celebrate we are making more low fares available on both our Cairns & Brisbane international services during the months of October and November. This is our way of saying thank you to all our valued clients who have used us over the past year and have made our International debut a success”.

In addition, Christmas is fast approaching and the Airline has issued a timely reminder that planning of holiday travel to be with loved ones at that time should be done right now. Individuals, families and business houses are encouraged to attend to their holiday travel arrangements early to avoid disappointment …‘BOOK NOW’ was the message.

The airline’s Manager Commercial Services, Gus Kraus commented: “APNG’s Port Moresby – Cairns services have been successful in stimulating the PNG-Australia market. In response to that, we will be adding further weekend return services from the end of November that will assist to meet the increased demand during the festive season holiday travel period.”

Mr Kraus added: “We believe the Cairns services have become the mainstay of our Australian push forward but with our third Brisbane service also coming on-line in November, we see that too opening up further travel opportunities.”

Airlines PNG says that the era of self booking using the Airlines’ website is fast becoming a reality - with all its international flights now available on-line. The airline plans to make its domestic PNG services availablehere in the first quarter of 2007.

 

MEDIA RELEASE - THURSDAY 28TH SEPTEMBER2006 - AIRLINES PNG TO INTRODUCE 3RD SERVICE TO BRISBANE PORT MORESBY, PAPUA NEW GUINEA

A little over a month ago, Airlines PNG expanded its international services to include a twice-weekly Boeing 737 jet service between Port Moresby and Brisbane. Now the airline has announced it will – as from Friday 3rd November – operate a third service each Friday.

Chief Executive, Simon Wild commented: "When we started the Brisbane service, we indicated that, once the operations had been bedded down, we would be increasing frequency in order to offer PNG travellers even more choices of flights and days of travel. Judging by the very favourable compliments we have received from those who have already flown with us to Brisbane, we are comfortable that the market is ready for this next step.”

He added: “Our appealing all business class seating configuration will remain a feature of our Brisbane services. The 60 large and comfortable seats will continue to be offered to the public at discounted economy class prices and - yes - a free meal and bar service is included in those prices.”

The airline has scheduled its Friday service at the same departure times as the existing Monday and Wednesday flights – leaving Brisbane at 7:30 in the morning – arriving Port Moresby at 10:40am and departing Port Moresby at 2:00pm – arriving back in Brisbane at the convenient time of 5:10pm.

Airlines PNG believes that the third weekly service will be well received in the lead up to and during the peak travel season in December/January. Having flights on both Mondays and Fridays will provide greater opportunities and flexibility for business people and family members wishing to travel in either direction to be with family members during the weekend. Flights at the beginning and end of the week will also suit those from overseas wishing to conduct a full week’s business in PNG but still be home by the weekend.

General Manager in Papua New Guinea, John Fitzgerald commented: “This airline is all about offering choices. The new Friday service definitely adds to the international travel opportunities that we have opened up over the past couple of years for Papua New Guineans who have previously been restricted in choices of both flights and prices”

The special introductory fares to Brisbane that the airline offers on its existing flights will be extended to the Friday services. That means fares on Airlines PNG services to Brisbane start at an extremely low K399 – but a word of caution from the airline’s GM:

“Most travellers are now well aware that such low fares must be strictly limited in availability and are subject to tight conditions of issue. While Airlines PNG’s allocations of our K399 ‘Wild Fare’ and our other discount fares are quite generous, available seats were snapped up in a matter of days when released on commencement of our Brisbane services last month.”

The airline has also advised people intending to travel on its international services in December and January to book well ahead. Mr Fitzgerald: “Christmas/New Year is the time when all airline services come under great pressure because everybody wants to go somewhere – whether home to family, away on holidays or just to get from A to B. So to avoid disappointment at being unable to get the flight of your choice, we suggest you book NOW to secure your seats for when you want them.”

***END OF RELEASE***

MEDIA RELEASE - THURSDAY 21ST SEPTEMBER 2006 - AIRLINES PNG DOMESTIC SCHEDULE CHANGES

Following a thorough review of its existing passenger services, Airlines of Papua New Guinea has announced changes to their domestic schedule effective 1st October. The schedule allows better connections between its Cairns andBrisbane International ports through to the PNG provincial airports. Three Dash 8 flights via Lae, will give improved services to and from Mt Hagen, Kiunga and Tabubil. Airlines PNG’s General Manager, Mr. John Fitzgerald commented: “Many of the changes we have made reflect the changing face of aviation in PNG. At Airlines PNG, we have recognised the need to become more efficient in order to compete – not just with other carriers but even with large passenger carrying vessels. All airlines have been put on notice that we must keep pace with a changing environment that offers travellers several choices to get to their intended destinations.

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JULY 2006 - AIRLINES PNG ANNOUNCE NEW BRISBANE SERVICE

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APRIL 2006 - RYAN PINI VISITS AIRLINES PNG IN CAIRNS

Ryan Pini dropped into Airlines PNG Head Office for a quick visit. Winning Gold at the commonwealth games, he swam a PB to beat Australia’s Michael Klim in the 100m butterfly. All the staff were thrilled to meet Ryan.