Air Niugini has embarked on a transformative re-fleeting programme valued at approximately NZ$2 billion—the most substantial investment in its 52-year history. This strategic initiative, spanning from 2025 to 2028, aims to modernise the airline’s fleet, enhance service quality, and bolster operational efficiency.
The re-fleeting plan involves the acquisition of 13 new aircraft: 11 narrow-body Airbus A220s and two wide-body Boeing 787-8 Dreamliners. Of these, five aircraft will be leased from international vendors, while eight are direct purchases. This investment underscores Air Niugini’s commitment to becoming a significant player in the Pacific aviation market.
Financing for this ambitious programme is sourced from a consortium of partners, including the Papua New Guinea government, the Asian Development Bank (ADB), the U.S. Export-Import Bank, and Export Finance Australia. The ADB, in particular, has approved a $140 million financing package to support the fleet upgrade, reflecting its dedication to enhancing infrastructure in the Pacific region.
Air Niugini’s Managing Director, Gary Seddon, emphasised the significance of this investment, stating that it aligns with Papua New Guinea’s commitment to modernising critical infrastructure. He highlighted that the introduction of these new aircraft is expected to improve service reliability and reduce operational costs, ultimately leading to more competitive airfares for passengers.
The airline currently operates a fleet of 24 aircraft, including Fokker 70s and Fokker 100s, which are slated for replacement under this program. The addition of the Airbus A220s and Boeing 787-8s is anticipated to enhance passenger experience, improve fuel efficiency, and expand Air Niugini’s route network both domestically and internationally.
This re-fleeting initiative comes at a critical time as Papua New Guinea addresses economic challenges such as currency depreciation, foreign exchange shortages, and imported inflation. In 2023, the government secured US$918 million in assistance tied to financial sector reforms, which have helped ease foreign currency shortages affecting businesses like Air Niugini.
Despite these challenges, Air Niugini has proactively navigated economic headwinds, including import inflation and fuel price fluctuations. The airline’s leadership remains optimistic that the new fleet will alleviate chronic delays and cancellations, thereby enhancing operational reliability. Additionally, there is a strategic focus on reducing travel costs for passengers over the next three years, making air travel more accessible and affordable.
