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POMSOX ANNOUNCEMENT - FOR IMMEDIATE RELEASE TO THE MARKET - PORT MORESBY 9:30AM FRIDAY 16th NOVEMBER 2012 CEO TO STEP DOWN The Board of Directors of Airlines of Papua New Guinea Limited (POMSOX: CGA) announces that it has agreed with the Company’s Chief Executive Officer, Gary Toomey that Mr Toomey will step down from his role as CEO on 21 November 2012. Mr Toomey was originally appointed to the CEO position in August 2009. The Board considers that, with the term of Mr Toomey’s contract drawing to a close and the Company entering a new phase in its development, it is an appropriate time and in the best interests of the Company, its shareholders and employees to hand over to an incoming CEO so that the new appointee may become immediately involved in the planning and implementation of that next phase. Mr Muralee Siva, an experienced aviation executive, with strong knowledge and expertise in regional aviation, finance, marketing and strategic planning, has been appointed as the Company’s new CEO and will take up his position on 21 November. Mr Toomey will continue with the Company to 30 November 2012 to facilitate a seamless handover of duties to Mr Siva. Chairman of the Company’s Board, Simon Wild, said “On behalf of the Board and Company, in recognising the contribution that Gary Toomey has made over the past few years, I sincerely thank him for his dedicated efforts for the Company, which has benefitted from the considerable skills and experience he has brought to it”.
For further information contact: Media Relations: Telephone: 302 3194 Email: media.relations@apng.com Investor Relations: Telephone: 302 3234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 29th AUGUST 2012 - RETIREMENT OF JOHN JEFFERY AS A DIRECTOR / APPOINTMENT OF MURRAY WOO AS A DIRECTOR Airlines PNG advises that Mr John Jeffery retired as a Director on 29 August 2012, having served as a Director since 23 June 2008. Mr Jeffery’s appointment as a Director coincided with the listing of the Company on the Port Moresby Stock Exchange. The Board wishes to thank Mr Jeffery for his tremendous contribution to the Company in making the transition to a mature public company. That contribution has been both as a Director and as Chairman of the Board Audit Risk and Compliance Committee, where he has shown great dedication to his duties, often at times of personal sacrifice. Mr Jeffery’s experience has been invaluable in establishing proper Board and Corporate Governance systems and in guiding the Company’s business. After accepting Mr Jeffery’s retirement, the Company’s Board appointed Mr Murray Woo as an additional Director of the Company. Mr Woo is the Managing Director of Woo Textile Corporation Limited and was a founding Director of the Manufacturers’ Council of Papua New Guinea, of which he is now the Chairman. In that capacity he sits on a number of boards and committees: · National Superannuation Fund (NASFUND) · NASFUND Contributors Saving & Loans Society · Business Council of Papua New Guinea · Consultative Implementation and Monitoring Council · National Working Group Improvement to Business and Investment Climate (for which body he is also the Chairman of the Ports Delay and Infrastructure Sub Committee) · National Institute of Standards and Industrial Technology Mr Woo is a professional member of the Papua New Guinea Institute of Directors. Both Mr Jeffery’s retirement and Mr Woo’s appointment will be effective from 29 August 2012. For further information contact: Media Relations: Telephone: 302 3194 Email: media.relations@apng.com Investor Relations: Telephone: 302 3234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 30th JULY 2012 - AIRLINES PNG LANDS SAFETY AWARD Airlines PNG has been awarded the ESSO Highlands Limited (EHL) Special Project Managers Safety Award for 2012. Chosen by EHL from all PNG LNG contractors, the Award recognises Airline PNG’s superior commitment to safety and compliance with EHL’s rigorous safety regime. Airlines PNG supports EHL in Papua New Guinea by providing over 1,800 flights a year in Dash 8 aircraft between Port Moresby and the EHL operations in Moro and Tari. “We are naturally delighted with this award and take great pride in it on behalf of all our staff who have worked tirelessly to follow the airline’s safety program” said Gary Toomey the CEO of Airlines PNG, “We set extremely high standards for our staff in all aspects of the business and to have an independent organisation recognise the efforts being made is extremely gratifying. All those travelling with Airlines PNG can take comfort in the fact that their safety is our main priority”. Larry Watson, Aviation Manager for EHL paid tribute to the staff of Airlines PNG. “Airlines PNG was chosen for this award because it has genuinely embraced Esso Highlands Limited’s high safety standards and delivers them consistently. Having policies and procedures regarding safety is one thing but ensuring that management support and staff work to these policies is the key. We are pleased to see the work done by Airlines PNG staff in ensuring safe work practices and continuous improvement is ingrained in the company culture.” Airlines PNG is regularly audited by all of its resource customers in addition to annual audits conducted by PNG CASA, CASA Australia, Virgin Australia and the BARS flights safety foundation. This audit program is far more rigorous and demanding than audits conducted on other aviation providers in PNG and gives all passengers tangible proof of the airline’s commitment to safe air travel. Full details of the Airlines PNG Safety Program can be found on www.apng.com 
For further information contact: media.relations@apng.com
POMSOX RELEASE - 18th MAY 2012 - APPOINTMENT NEW CHIEF FINANCIAL OFFICER Airlines PNG advises that the company’s Chief Financial Officer, Simon Woolcott, recently resigned his position to return to work in Australia. Following a review of internal competencies and the existing structure of our Finance Division, the company’s present Financial Controller Jaydip Sengupta was offered and has accepted appointment to the Chief Financial Officer position. Jaydip has been with the company since September 2010. Prior to joining the company, he spent 5˝ years as Group Financial Controller at W R Carpenter Group and 3 years as Senior Audit Manager with RAM Business Consulting. Before his arrival in Papua New Guinea he had extensive management exposure working in different organisations in India. Jaydip holds a Masters Degree in Commerce, is a member of CPA Australia and CPA PNG and is a qualified Chartered Accountant (India). Both the resignation and appointment will be effective 1 June 2012. For further information contact: media.relations@apng.com
POMSOX RELEASE - 17th MAY 2012 - CHAIRMAN'S AND CEO'S PRESENTATION TO ANNUAL GENERAL MEETING
Set out below are the texts of presentations to be given by the Chairman of the Board of Directors of Airlines PNG, Mr Simon Wild, and the Chief Executive Officer of the company, Mr Gary Toomey, to the Annual General Meeting of Shareholders of the Company to be held this morning in Port Moresby: CHAIRMAN’S ADDRESS: I am pleased to report to shareholders that board and management have delivered on the commitment made to you 12 months ago to continue with successive years of profitability. In reflecting on our year we again take time to remember those people affected by the tragic events outside of Madang last 13 October. Twenty-eight lives were lost on that day while four others continue to recover from the accident. The airline continues to mourn with the country as we pray that those lost rest in peace with God. Authorities continue to investigate the cause of the accident and the final report remains some way off. That said, in the immediate aftermath of the accident regulatory bodies around the world including those in Australia, Canada and PNG have already mandated aircraft systems changes required to be undertaken by Dash 8 operators. Airlines PNG plans to be the first local operator to have these changes completed throughout its fleet later in 2012. Turning back to the airline’s 2012 performance: our overall performance was inevitably affected by the tragic Madang incident. The airline endured at its own initiative a six week grounding of its Dash 8 fleet while allowing regulatory bodies complete access to its systems and aircraft. Only after approvals from the PNG regulator did the airline commence flying again. That had significant financial impact. That the airline sustained this temporary grounding and still managed to return a profit for its shareholders demonstrates the strength of the airline’s balance sheet and cash flows. It also indicates the airline was on course to achieve greater potential profits than it was in fact able to. The Group is however pleased to deliver an improved full year financial result of K3.9m in line with previous guidance to the market. The continued improvement in performance validates the strategic decision taken by your Board to concentrate on: - Increasing management expertise - Devoting additional resources to safety and efficiency enhancements - Increasing capacity to capitalise on market growth fuelled by the current resources boom. In order to support the transition from General Aviation to a more regional airline operation it was considered necessary to improve systems, procedures and above all people. Many improvements have occurred, but there will always be a need for continued development in the airline. That can only be supported by revenue growth, which in turn should also lead to higher levels of profits. Key to the airline’s continued growth is capacity and that in turn is highly dependent upon the airline’s ability to introduce additional aircraft into the business. The airline introduced two additional aircraft during 2011 - one DHC 8 and one Twin Otter. These acquisitions increased the fleet size to 22 by year end. These additional aircraft were mostly utilised to provide increased capacity in the domestic RPT sectors where new routes and additional seats on existing routes have been introduced during the period. The demand for additional air services exists, both in the form of specialised charter contracts currently underpinned by the resource sector, and in the scheduled RPT market. During the year the airline introduced new services to Hoskins and Rabaul. This was a significant step for the airline as it continues to encroach into competitive markets previously the heartland of the national carrier. While the launch of Travel Air has also intensified competition, Airlines PNG continues to perform well on these new routes. Airlines PNG would like to thank all stakeholders from the Islands region for their support on the new routes. We hope to provide additional services beyond the existing destinations in the future. While the CEO will touch more on the details of the operating performance of the business I want to make specific comments on the issues of dividend and share price, both of which I know are at the forefront of shareholders’ minds. Not for the first time I say that it is the view of the Board that it is in the interests of the long term positive financial performance of the Group that available moneys be invested in the Group’s business rather than distributed as dividends. With revenue growing at 40% year on year the company still requires continuing investment to increase capacity and service increasing demand. This will also serve to enhance the company’s economies of scale meaning a greater percentage of revenue will be profit going forward. The investment the Group is making is mainly directed towards the acquisition of additional aircraft. This is an on-going process, with inspections and due diligence being conducted on additional Dash 8 and Twin Otter aircraft. There will also be other significant capital expenditure commitments in maintaining a larger operation. While these commitments requires additional funding which is achievable given the company’s strong balance sheet position, equally the company needs to carefully manage its cash reserves to support these obligations and also to cater for contingencies such as movements in fuel price and exchange rates. On the matter of share price the Board is certainly cognisant of the lack of bounce in recent times notwithstanding the announcement of our 2011 result and the current positive outlook. We can only say this is most likely a function of the market and a lack of liquidity in the exchange rather than being related to the company’s financial performance. We suspect the liquidity issue is a matter for the exchange as a whole and we look forward to working with stakeholders as to how these limitations may be addressed. In the meantime we will continue to operate on the basis that share values are influenced by future expectations of a business. The Board’s focus is to ensure we have a profitable business to support those expectations and future share values. We certainly do not take the view that the current exchange listed price reflects the true value of the business, either from an asset point of view or in relation to the future earnings potential of the business. We have also consciously attempted to improve our communications with you over the period. This has included electronic distribution of company announcements. I hope many of you are already taking advantage of this facility. I certainly trust that you are now more satisfied as to the level of information now available as to the Group’s activities and performance and we will look to continually improving on this in the coming year. Finally, I would like to thank our shareholders for their continuing support as we begin to leverage the strong foundations restored to the business over the past 2 years. Simon Wild, Chairman CEO’S ADDRESS Introduction Firstly let me reiterate the words of our chairman with respect to those who lost their lives on October 13. It is an event and time in our lives that we will always remember and feel deeply. Our thoughts and prayers are with those who are lost and with their families as they remember their loved ones. The 2011 financial year marked the second full year of my tenure as CEO. We can look back with some sense of achievement on delivering a K3.9m pre-tax profit for the company in that year, more than 50% above the previous year’s result. In 2010 the airline had to turn around its fortunes converting what was a significant loss in 2009 into profitable operations. 2011 was seen as a building year as the airline implemented many new policies and procedures and rolled out a large expansion of our RPT network with the introduction of new island services in June. This move was significant for the airline as it represented a new area of the country being serviced, outside our previously established mainland routes. It was also significant for the people of the islands and highlands, as it provided additional options to them and created a reliable and frequent connection between the two. The route very quickly became one of the airline’s most profitable services as it answered a market demand for reliability, frequency and freight services which had not been adequately met previously by other airlines. Introduction of the airline’s service to the islands was met by the introduction of another airline, Travel Air, into the market. We believe that we can cope with this competition and that our service offering and flight frequency in the islands mean we are there to stay. 2011 provided many challengers for management including: · volatile foreign exchange rates as the Kina strengthened against both the Australian and US dollars; · volatility in fuel prices as the world navigated conflicts or widespread unrest in Libya, Egypt and Syria; · a global down turn as key markets in America and western Europe continued in recession and smaller European nations threatened to default, in turn resulting in a drying up of business travel and tourism towards the end of the second quarter. We were fortunate that the price of gold reached its highest point in history, and other commodity prices held up, which continued to support resource activity in the country. Highlights Let me draw your attention to some of the year’s highlights. The Group achieved: - Profit before tax of K3.9m, up from just under K2.5m in 2010 - Charter revenue of K142m, up 21% year on year - Regular passenger transport revenue K97m, up 18% year on year - Freight revenue K13m, up 25% year on year The Group is pleased to deliver this improved full year financial result in line with previous guidance to the market. 2012 opportunities In 2012 we will look to consolidate and build on last year’s profitable result by entering additional charter contracts with new and existing clients as well as expanding scheduled services – all of which will require more aircraft and resources. The airline is looking at the introduction of additional services to the islands in addition to widening its network in the Highlands and Mamaose regions of PNG. These regions are viewed as vital manning and supply networks for the resource boom in PNG. The airline is focusing on introducing additional airframes to support these new services and to capitalise on other growth opportunities. Resources industry activity remain on the rise with the LNG project moving into full swing and subcontractors beginning to better understand their aviation requirements. Further, seismic work on the West Papuan boarder and developments at Parari River and Wafi have created real stimulus for Twin Otter services. The airline is in the process of tendering for other major charter contracts. Our experience and professionalism in servicing existing contracts sees us well placed to compete for these contracts. 2012 challenges Despite the undoubted potential in the PNG market the company needs to be aware of various macro-economic challenges. With PNG experiencing one of the highest GDP growth rates in the world, domestic inflation is affecting salaries, accommodation and utilities levels making retention of skilled staff one of our main challenges and priorities. Fuel price volatility and uncertainty in foreign exchange markets could potentially materially affect financial performance. By far the largest challenge to management is introducing additional aircraft to the fleet. Capital challenges, lack of available aircraft in the market, and crew and engineering restrictions all represent difficulties that the airline must overcome to ensure its future success. Outlook With the loss of P2 MCJ in October the airline must rebuild market confidence and earn back the support of the business community. The loss of the capacity alone significantly impacted on the airline’s growth curve which I see as being pushed back 12 to 18 months. Overall I remain confident that we have a great team behind us who are working diligently to ensure that we deliver value for shareholders and secure the future growth of the business both in the context of current opportunities and the long-term sustainability of the business. Finally, I would like to personally thank the Board for their counsel and support. Without this support the significant turnaround of the company would not have been possible. Gary Toomey, Chief Executive Officer For further information contact:
Media Relations: Ph: 3023194 Email: media.relations@apng.com
POM - BRISBANE NEW TUESDAY FLIGHT Download Media Release
POMSOX/MEDIA RELEASE - 14th MARCH 2012
AIRLINES PNG RECORDS ANOTHER PROFIT
Airlines PNG has today reported its preliminary result for the financial year ended 31 December 2011.
Despite a challenging operating year for the airline, comprehensive income before tax for 2011 was K3.9m which represents a K1.5m improvement to the corresponding period in 2010.
This also represents the Group’s third consecutive profitable half year result.
Operating revenue for the period was up 24% to K261m on account of the following: - 21% increase in charter revenue driven by full year impact of the Esso Highlands and increased charter rates arising from the 2010 review on pricing;
- 18% increase in Regular Passenger Transport (RPT) operations which were achieved by introducing New Guinea Islands operations in June 2011; and
- 25% increase in freight revenue which is a direct result of the increase in RPT operations.
Direct costs and overheads were up by 19.2% to K262m as a consequence of the Group’s increased operational activities.
The Group is pleased to deliver an improved full year financial result in line with previous guidance to the market. The improved performance demonstrates the effectiveness of the Airlines PNG Board’s strategy to increase management expertise; focus on safety and efficiency; and increase the airline’s capacity to capitalise on the growth in the aviation market primarily driven by the current resources boom.
The Group introduced two additional aircraft during 2011 - one Dash 8 and one Twin Otter aircraft. These acquisitions increased the fleet size to 22 aircraft by year end. These additional aircraft were mostly utilised to cater for the increased capacity in the domestic RPT sectors where new routes and additional allocation to existing routes have been introduced during the period.
A key benchmarking tool for the Group is Earnings Before Interest Tax Depreciation Amortisation and rentals (EBITDAr). Compared to 2010 the Group has increased its full year EBITDAr from K44.8m to K56.3m which represents an increase of 26%. (Note: EBITDAr is a measure of the airline’s ability to provide a return on assets invested.)
As a percentage, Net Assets has increased from 39% for 2010 to 51% for 2011.
Looking forward, both the Dash 8 and Twin Otter aircraft markets have tightened which will have a twofold effect in the coming year: - aircraft values will be driven higher improving the Group’s balance sheet, and
- the Group’s ability to introduce additional capacity may be limited.
The Directors believe that Airlines PNG remains well poised to deliver a profitable result for the coming year with its ability to attract and maintain long term charter contracts whilst continuing to develop its international and domestic RPT operations.
Whilst the Group is pleased with its full year performance there are still a number of developments necessary to undertake to ensure delivery of consistent positive results. Accordingly, the Group will not be declaring a dividend for the period instead electing to continue to invest in aviation assets directed at enhancing the Group’s ability to produce increased revenue leveraging off its current cost base.
For further information contact:
Media Relations: Ph: 3023194 Email: media.relations@apng.com Investor Relations: Ph: 3023234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 11th OCTOBER 2011
DAILY SERVICES TO ISLANDS REGION BY AIRLINES PNG
Air services by Airlines PNG to the Islands region have been given a massive boost by today’s announcement of daily services to Kimbe and Kokopo effective 24th October 2011. After only four months of operation to these destinations the airline has moved to increase services from four times a week to daily operations. This increase has come about as a direct result of customer demand for additional passenger and freight options to be added to the schedule.
“Airlines PNG introduced the Island services in mid-June of this year and right from the start we were overwhelmed by the very positive support and feedback we received for these services” said Mr Scott Roworth, Chief Commercial Officer of Airlines PNG. “At the time of launching we were told by the people of the Islands region that we needed to move to daily services such was the demand for air travel in the region. It has taken us a couple of months to adjust our schedule in order to make this increase a reality and we look forward to now being of even greater service to the Islands region communities”
The new schedule sees daily operations linking Port Moresby, Lae, Kimbe and Kokopo which further increase passenger and freight uplift for the region and increased access to other points in PNG through the Airlines PNG domestic network.
“Airlines PNG has made significant improvements to its network over recent months and has expanded domestic capacity by more than 40% since June 2011. We have even more growth planned over the coming year as we focus on delivering reliable services to more destinations throughout PNG” continued Scott Roworth.
For further information contact:
Media Relations: Ph: 3023194 Email: media.relations@apng.com
POMSOX/MEDIA RELEASE - 07th OCTOBER 2011 - NEW SERVICE FOR POM-BRISBANE ROUTE Customers flying Airlines PNG this festive season will be pleased to know that the airline operator is increasing week-day services between Port Moresby and Brisbane. Airlines PNG will introduce the additional Thursday service for its customers beginning in November.
APNG management announced that airline will now operate 4 weekday services on Monday, Wednesday, Thursday and Friday effective 1 November 2011. The Thursday service will replace the Sunday service.
“We have dropped the Sunday service in favour of Thursday as customer demand has called for an addition to the weekday schedule and a reduction in demand for weekend services” said Scott Roworth, Chief Commercial Officer for Airlines PNG.
The airline group also announced that the passengers flying with Airlines PNG on the Port Moresby/Brisbane route are eligible to receive Velocity Reward points, a luggage allowance of 32kg plus great on board menu and in-flight entertainment options.
“With the domestic points in Australia and New Zealand now served by our agreement with Virgin Australia, we offer more choice to more places all easily booked through your travel agent” continued Roworth.
“Our goal is to ensure that the people of Papua New Guinea have the option of increased services and the ability to travel as they need to in order to connect people and businesses wherever they may be. Airlines PNG is committed to improving its services to better suit customer’s expectations.”
[For more information please contact Airlines PNG on 302 3246.]
POMSOX/MEDIA RELEASE - 29th SEPTEMBER 2011 - NEW AIR SERVICES A REAL WINNER FOR ALL Recent additions to the network operation for Airlines PNG have proven to be highly successful for local communities and the airline alike.
In June this year the airline commenced daily services into Madang and four times a week operations into Kimbe and Kokopo. Recent aircraft acquisitions on the back of significant improvements in profitability and financial performance provided the stimulus to allow these additional services to be factored into the airlines rapidly expanding scheduled operations.
“The past 6 months have seen Airlines PNG increase our capacity and scheduled operations in excess of 30%” said Mr Scott Roworth, Chief Commercial Officer of Airlines PNG. “This expansion has been fuelled by customer demand for reliable access to both passenger services and freight. The performance of our new routes to Madang and New Guinea Islands has been nothing short of phenomenal in a short space of time with customers in these regions welcoming the additional air services”
Such has been the demand for the services that plans are well in place to support customers with further increases in scheduled operations. “We have even bigger plans for more expansion over the next year with more aircraft entering the fleet. The PNG public will be the big winners as many communities with infrequent services or none at all will be able to travel when they need to” Roworth said.
Investing in new scheduled services comes at a price with Airlines PNG investing in two new aircraft this year to support the increased services. This investment has only been possible as a result of a spectacular turnaround in business performance over the past two years, a turnaround which saw the airline move from a loss of PGK27 million in 2009 to profit in 2010 and an even bigger profit projected for 2011.
“This turnaround in performance has been the result of steady improvement in business processes, recruitment of key staff with extensive airline experience and a focus on meeting our customer’s expectations” continued Roworth. For further information contact:
Media Relations: media.relations@apng.com
Investor Enquiries: simon.siganto@apng.com
POMSOX/MEDIA RELEASE - 22nd SEPTEMBER 2011 - PNG GOVERNMENT GIVES IN-PRINCIPLE APPROVAL TO MERGER OF AIR NIUGINI AND AIRLINES PNG Airlines of Papua New Guinea Limited (“Airlines PNG”) congratulates the PNG Government on the announcement today approving the in-principle merger of Air Niugini Limited, the state owned national carrier of PNG, with Airlines PNG.
Airlines PNG will work closely with the PNG Government and Air Niugini to develop the merger transaction. A Memorandum of Understanding between the three parties will see the establishment of a Merger Implementation Office under the leadership of Rt Hon Sir Mekere Morauta, Minister for Public Enterprises. The Merger Implementation Office will establish the transaction structure and timeline for implementation, and ensure the people of PNG receive full and fair value via a fully transparent process and independent valuation of both companies.
The merger is expected to bring great opportunities for the people of PNG, with immediate plans to extend aviation services into a range of rural areas not presently well served. Specifically Airlines PNG congratulates the PNG Government for their vision in making this possible.
The merger will enable the combined airline which will operate one of the largest fleet of aircraft in the South Pacific, to better cover an extensive range of international and domestic destinations, serving locations from Singapore right down to small villages in PNG.
A larger and stronger national carrier is also expected to provide increased employment opportunities for PNG staff following from the expansion of operations and the internalisation of certain support services which are currently provided off shore.
The merger remains subject to the approval of Airlines PNG shareholders and approval of the final transaction by the Government, together with all other necessary corporate, regulatory and third party approvals.
Airlines PNG’s Board remains committed to maximising value for its shareholders. This will continue to be the central premise upon which the merger transaction will be evaluated.
Airlines PNG will keep the market informed of further developments with the merger transaction as appropriate.
For further information contact:
Media Relations: Ph: 3023194 Email: media.relations@apng.com
Investor Relations: Ph: 302 3234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 19th SEPTEMBER 2011 - FREIGHT PARTNERSHIP TO AID PNG BUSINESS Airlines PNG and Toll Priority/Pacific Air Express today announce the start of a partnership which will provide PNG based businesses with increased import and export options.
The partnership involves up to three 737 freighter services a week operated by Pacific Air Express between Port Moresby and Brisbane. These services will link into the Airlines PNG domestic network at Port Moresby and into international carriers networks in Brisbane which will offer import and exporters alike greater options in order to secure space for their freight resulting in faster time to market, reduced wastage and more efficient service for all.
Pacific Air Express also operates 737 scheduled freighter services to Honiara and Port Vila, as well as charter flights throughout the south west Pacific region. The airline was established in 1993 by Australian and Solomon Islands shareholders.
As the largest corporate charter airline in Papua New Guinea, Airlines PNG flies contract charters for almost every major resource company in the country and is Exxon Mobil’s exclusive fixed wing charter airline for the PNG LNG program. In addition scheduled services continue to grow with new routes being added into the network and additional flights between key city pairs further increasing options for travellers.
“We have seen increasing domestic and international demand for freight services and have increased capacity on key routes such as Port Moresby, Lae and Mt Hagen plus new services through the Islands region in an effort to accommodate this demand” said Scott Roworth, Chief Commercial Officer at Airlines PNG, “This partnership with Toll Priority/Pacific Air Express signals our commitment to the market and our desire to continue to offer innovative and commercially attractive options to our business partners. Our fleet expansion plans will further improve our customer service for charter and scheduled service passengers and freight operators alike.” For further information contact: Media Relations: Ph: 3023194 Email: media.relations@apng.com
POMSOX/MEDIA RELEASE - 14th SEPTEMBER 2011 - AIRLINES PNG TAKES OFF TO AUSTRALIA AND NEW ZEALAND Airlines PNG have today announced an aggressive new foray into the Australian and New Zealand domestic markets.
Airlines PNG’s Port Moresby-Brisbane service, a codeshare with partner airline Virgin Australia has now been expanded by an interline-ticketing agreement allowing access to Australian and New Zealand destinations served by the Virgin Australia Group.
Airlines PNG passengers can now book with Airlines PNG from anywhere in the PNG network to various cities in Australia or New Zealand serviced by Virgin Australia with easy connections and baggage transfers.
“This is an exciting time for Airlines PNG” said Gary Toomey, CEO of Airlines PNG. “”In recent months we have expanded our domestic network by around 30% adding new destinations including Rabaul, Kimbe and Madang plus increasing capacity on a number of other routes. This new expansion into Australia and New Zealand signals our investment in PNG and support for our customers”
From a customer’s point of the key benefit will be one of a seamless travel experience should they be travelling from PNG onto other centres in Australia.
“For example you can now check-in in Rabaul and travel to Sydney or Perth on one ticket for the entire journey - one easy transaction” said Mr Toomey. “Or if you take our direct service to Cairns you can connect to anywhere else in Australia.”
To begin with the agreement will be applied to the following ports in Australia and New Zealand with additional destinations to be rolled out at future dates as needed:
PORT MORESBY/BRISBANE to ADELAIDE, PERTH, SYDNEY, MELBOURNE, TOWNSVILLE, AUCKLAND and vice versa
With the increasing demand for travel beyond the Brisbane gateway served by both carriers this new agreement opens the door to increased commercial and tourism based travel between the three countries and has been welcomed by business leaders and local tourism operators.
Airlines PNG also wishes to announce a change to the Port Moresby/Brisbane/Port Moresby schedule effective 1 November 2011.
This will involve the addition of a Thursday service which will replace the current Sunday flights.
This schedule change is to be effected in response to increasing demand for additional weekday services and a corresponding drop off in requests for weekend travel.
The revised schedule effective 1 November 2011 as follows:
CG201 BNE – POM 1000 – 1305 Mon, Wed, Thu, Fri CG200 POM – BNE 1400 – 1710 Mon, Wed, Thu, Fri For further information contact: Media Relations: Ph: 3023194 Email: media.relations@apng.com
Investor Relations: Ph: 302 3234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 13th SEPTEMBER 2011 - AIRLINES PNG RECORDS HALF YEAR PROFIT Airlines PNG has today reported a profit of K0.7 million for the half year ended 30 June 2011 - a turnaround of K5 million on the corresponding period in 2010.
“This represents the Group’s first positive first half result since listing as the benefits of the strategic realignment which commenced in 2009 continue to take effect”, said Airlines PNG CEO Gary Toomey.
“The Group continues to expect improved profit in the 2011 financial year particularly since a stronger second half performance is anticipated given the increase in seasonal travel which usually occurs during the period”, continued Mr Toomey.
Operating revenue for the first half was up 33% year on year to K132 million, underlined by a 50% year on year increase in charter revenue while income from domestic RPT services increased by 30%.
These revenue improvements are a result of additional aircraft capacity coming online and enhanced operating yields.
In terms of capacity, Airlines PNG introduced two additional aircraft during the period (one Dash 8 and Twin Otter aircraft each) increasing the Group’s overall fleet size to 23 aircraft.
These additional aircraft were mostly utilised to cater for the increased capacity in the domestic RPT sectors with new routes to Madang and the New Guinea Islands recently introduced while additional services to existing routes such as Lae have also commenced.
Also contributing to the result are changes to accounting policies which have been implemented during the course of the period in order to bring the Group into line with standard airline industry practice.
Direct costs and overheads for the period were up 25% to K124 million. While a component of the increase directly correlates to the increase in operating activities, the Group experienced a 16% (K3.5 million) increase in cost of fuel for the period and suffered negative impact on revenue as the Kina strengthened against the USD.
Compared to first half of 2010 the Group has increased its Earnings Before Interest Tax Depreciation Amortisation and Rentals (EBITDAR) from K12.7 million to K26.5 million which represents an increase of 108%.
EBITDAR (which is a measure of Group’s ability to provide a return on assets invested) as a percentage of net assets for the half period has increased from 11% to 25% year on year.
Moving forward the Group plans to continue growth of its domestic operations while at the same time continuing to take advantage of opportunities from the upturn in charter demand as non LNG resource companies complete drilling and seismic works and move into the development phase. For further information contact: Media Relations: Ph: 3023194 Email: media.relations@apng.com
Investor Relations: Ph: 302 3234 Email: investor.relations@apng.com
POMSOX/MEDIA RELEASE - 10th JUNE 2011 - AIRLINES PNG'S CUSTOMER CARE SET TO TAKE OFF WITH DIGICEL Digicel, PNG’s leading telecommunications provider, this week started providing Customer Care and Call Centre services to Airlines PNG in a first of its kind “out sourcing” agreement for the country. Digicel, who introduced PNG’s first 24 hour Customer Care service in 2007, will be providing experienced employees and its state of the art call centre facilities to the international and domestic airline, which will include handling bookings, managing customer queries and providing high quality after sales service. Airlines PNG customers from Australia and PNG will benefit from extended Customer Care and booking hours with the Airline’s PNG hotline number 180 2764 now open between 6am and 10pm Monday to Saturday and between 6am and 8pm on Sunday and public holidays. The calls will be answered by dedicated and specifically trained Customer Care agents from within the Digicel Group. Digicel CEO, John Mangos said; “Digicel transformed the Customer experience in PNG when we launched in 2007 with 24 hour free customer care hotline and a commitment to quality service and we have set the standards in the country ever since. We are now in a position to provide that experience and our technology as an out sourced solution to Airlines PNG by tailoring the service to match their specific needs. We believe this out sourced solution is a major milestone for both Digicel and Airlines PNG and we look forward to a long relationship”. Airlines PNG CEO Gary Toomey said; “Airlines PNG is a very customer focused company and we want to ensure that our customers have the very best experience from the minute they pick up the phone to make a booking right through to when they get off the plane at their final destination. Using Digicel’s out sourced service will allow us to dramatically increase the hours that customers can contact us and book flights and will free up our employees to ensure we continue to offer the best travel and in-flight experience for our customers”.
POMSOX/MEDIA RELEASE - 03RD JUNE 2011 - AIRLINES PNG EXPANDS FLEET WITH NEW DASH 8 AIRCRAFT Airlines PNG this week welcomed a new addition to the fleet with the arrival of its eagerly awaited De Havilland DHC 8-100 (“Dash 8”) aircraft from Canada. After a ferry flight lasting more than 37 hours which took the aircraft through Canada, USA, Russia, Taiwan, South Korea, Philipines and Indonesia, the Dash 8 touched down at its new Port Moresby home late afternoon on Monday 30th May. The aircraft has now entered a two week engineering programme to standardise it in line with the rest of the Airlines PNG fleet of Dash 8 aircraft. The program involves realigning the aircraft maintenance to the Airlines PNG in-house maintenance system as well as installation of the Inflight Entertainment System, Global Navigation System, High Frequency Radio and other aircraft safety systems. Upon completion of the program the aircraft will be set up to handle the unique conditions imposed when flying in Papua New Guinea. “The addition of this aircraft now brings the Airlines PNG fleet up to 23 aircraft and will provide the airline with the additional capacity needed to support the recently announced network expansion into Madang, Kimbe and Kokopo in addition to servicing the ongoing demand for charter flights for the resources industry,” said Mr Gary Toomey, CEO of Airlines PNG.
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Members of the Airlines PNG Engineering division welcoming the aircraft in preparation for the engineering work to commence. | |
For further information contact: Media Relations: Phone: 302 3194 Email: media.relations@apng.com
POMSOX/MEDIA RELEASE - 25TH MAY 2011 - AIRLINES PNG EXPANDS NETWORK TO MADANG AND HIGHLANDS Hard on the heels of the recent successes announced by Airlines PNG comes news of an expansion of their network to become effective 14 June 2011. The strong financial result for the 2010 year and the subsequent fleet investment in additional aircraft has seen Madang added into the network plus additional capacity and frequency being added into key Highlands areas. Madang will now benefit from daily flights ex Lae plus connection through to Port Moresby and international sectors. This schedule comes as a result of requests from local businesses and individuals looking for support for their commercial activities. “Daily Madang services offer Madang residents the opportunity to be connected to the rest of PNG, at times which suit their needs” said Gary Toomey, CEO of APNG. “This vibrant and progressive community needs greater access to other markets than has previously been provided to them and we are confident that the region will become stronger as a result of this initiative”. Highlands region has also benefitted from the investment made by Airlines PNG with a far more comprehensive schedule offering greater flexibility and option for travellers. Highlights of the schedule include:
- Services to Mt Hagen ex Port Moresby up to 12 per week;
- Daily service to Daru ex Port Moresby;
- Non-stop services to Kiunga and Tabubil 6 days per week from Port Moresby;
- Lae to Tabubil through Mt Hagen now 6 times per week;
- Improved connections providing access for Port Moresby to Goroka, Wewak and Madang;
- plus Madang connection to Goroka and Mt Hagen;
- In total, 34% increase in seats available when compared to the current schedule. “This is a significant investment being made by Airlines PNG” continued Gary Toomey. “It’s an investment we are proud to make in order to provide options and choice for travellers in Papua New Guinea and we will continue to expand our services to support the growth of local communities.” For further information contact: Media Enquiries – email: media.relations@apng.com
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