PNG GOVERNMENT TO PARTLY PRIVATIZE AIR NIUGINI

State-owned Enterprises Minister Ben Micah, announced the government's plan in Port Moresby today that National Flag Carrier Air Niugini will be partially privatized.

Air Niugini will be the first state owned entity to go through the partial privatizations process.

This is part of government plan to develop and implement reduction in the government's participation in the business through state owned business enterprises.

However Not all state owned enterprise will go through this process as some are not fully or party suited for sale.

Those that are in the community service area generally need to remain in public hands.

But entities like Air Niugini, which operate in a competitive business environment, and have significant capital requirement, do not need to be fully state owned.

Minister Ben Micah said Air Niugini a 100 percent state owned entity has progressed very well over the years, however it had also faced with a lot of challenges regionally and globally.

Micah said the government has the sole shareholder of the airline understand the challenges faced by Air Niugini in trying to compete at the international level, therefore government wish to partly privatized it to ensure the airline remains viable and competitive.

Micha told Air Niugini management that as the minister responsible, he will make a submission to National Executive Council then to Parliament on how it will manage the sale of up to 49 per-cent shares to the public and hold back 51 % stake for the state.

Micah also assured the employees, union and the general public, that they will be fully informed right throughout the sale process.

The minister had also made it clear that foreign equity will NOT be permitted, and preference will be given to the county's Superannuation Funds as the founding investors.

That will ensure the airline employees, and Ordinary Papua New Guineans to have an indirect shareholding through their membership of the superannuation funds.

All in all, Air Niugini will remain the national flag carrier and will remain 100 % PNG owned.