PNG Landowners Take Flight with First-Ever Commercial Aircraft Purchase

Papua New Guinea has entered a new chapter in aviation history after landowner companies connected to the Ok Tedi mine purchased three brand-new ATR 42-600 aircraft, marking the first time local resource landowners have directly owned commercial passenger aircraft in the country.

The aircraft were acquired through Mineral Resources Star Mountain, Mineral Resources Ok Tedi and Mineral Resources CMCA, and will be leased to PNG Air under a long-term arrangement to support airline services and mining operations across the country. The announcement was made during Prime Minister James Marape’s visit to the ATR manufacturing facility in Toulouse, France.

 PNG Landowners Take Flight with First-Ever Commercial Aircraft Purchase/Photo supplied

The deal is being viewed as a major step towards increasing Papua New Guinean ownership in the aviation sector, an industry that has long depended on aircraft leased from overseas companies. MRDC Managing Director Augustine Mano said the purchase was not only important for aviation, but also for the economic future of landowner groups.

Mr Mano said the three ATR 42-600 aircraft would become part of PNG Air’s growing fleet and would mainly support operations in Western Province and other remote areas where reliable air transport remains essential.

He explained that most aircraft currently used by PNG operators are leased from foreign companies, but this arrangement would now begin to change with local landowners becoming direct aircraft owners.

The ATR 42-600 is a modern turboprop aircraft designed for regional travel and is considered well suited for Papua New Guinea’s rugged terrain, short runways and isolated airstrips. Mr Mano said the aircraft were chosen over regional jets because they are more economical and practical for local conditions.

He said the new aircraft use less fuel, produce lower emissions and can safely operate into difficult locations across the country while keeping operating costs down.

The aircraft are also expected to gradually support the replacement of PNG Air’s ageing Dash 8 fleet, some of which have been operating for nearly four decades.

PNG Air introduced ATR aircraft into its fleet in 2015 as part of its modernisation program and has since expanded its operations across the country. The airline currently operates 10 ATR 72-600 aircraft and plans to continue expanding its fleet in the coming years.

Another three aircraft are expected to be acquired later by additional landowner companies, further strengthening local participation in the aviation industry.

Mr Mano said the investment supports the Government’s Connect PNG vision by improving air links across the country and making travel more accessible for Papua New Guineans.

“This is history because, for the first time, landowners are buying aircraft directly from the factory and leasing them to a major airline company under a long-term arrangement,” he said.