PNG Air (CG, Port Moresby) is sub-leasing two of its seven ATR72-600s to an as-yet-undisclosed operator for the next two years to reduce its fixed costs and as part of wider lease restructuring negotiations with its lessor DAE Capital, the airline has announced.
The second aircraft is scheduled to leave Papua New Guinea in July for 24 months. This follows the sub-lease of the first aircraft from May 16, 2022, the company said in a statement.
"The purpose of this sublease arrangement is to provide some relief to PNG Air to recover from paying fixed lease costs with a substantial decline of revenue as a result of the COVID-19 pandemic. As part of our business continuity plan, the company plans to regain control of the two aircraft after 24 months," it said.
On inquiry, the airline declined to name the sub-lessor or the aircraft involved.
According to the ch-aviation fleets module, the airline has five ATR72-600s, of which three are currently in active service and two ATR72-600Cs, of which only one is active.
Efforts by PNG Air earlier this year to raise capital by selling shares to fellow domestic carrier Link PNG - a subsidiary of Air Niugini (PX, Port Moresby) - were scuppered by the country's Independent Consumer and Competition Commission (ICCC). Both airlines had hoped for operational cost savings from the proposal.
