Why is Papua New Guinea's Aviation Market Facing an ICCC Inquiry?
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The Independent Consumer and Competition Commission (ICCC) is continuing its inquiry into Papua New Guinea's aviation sector, focusing on high airfares, competition, and service quality.
Key Takeaways
- •The ICCC inquiry focuses on high airfares, limited competition between Air Niugini and PNG Air, and poor consumer protection in Papua New Guinea.
- •The Draft Report highlights monopolistic control over airport infrastructure by NAC and sole fuel supply by Puma Energy as key drivers of high costs.
- •The ICCC is seeking written public submissions on the Draft Report until February 20, 2026, to inform final recommendations on market reform.
The Independent Consumer and Competition Commission (ICCC) is continuing its comprehensive ICCC aviation industry inquiry.
The investigation focuses on the commercial aviation sector in Papua New Guinea (PNG). This inquiry aims to determine if the market needs economic regulatory oversight. Air transport is vital for connecting remote PNG communities. Many areas rely heavily on air services due to limited road access.
Regional Consultations Highlight Issues
Earlier this week, the Commission held a Highlands Regional consultation. This event took place in Mt Hagen. It brought together airline operators, regulators, and consumer groups. Discussions centered on airfares, competition, and service quality.
ICCC chief executive officer Roy Daggy noted the inquiry's importance. He said it will help understand real issues affecting the traveling public. The Commission has received complaints about high ticket prices and limited choices. Concerns also exist regarding reliability and customer service.
“This inquiry will help us understand the real issues affecting the aviation industry,” Daggy said. The goal is to make recommendations to improve competition and service delivery.
Key Findings from the Draft Report
Stakeholders reviewed a Draft Report during the consultation. This report highlights several systemic problems in the PNG aviation sector. A major concern is the limited PNG airline competition. The market is largely dominated by two main carriers, Air Niugini and PNG Air.
The Draft Report specifically noted several key challenges:
- Monopoly routes airline operations: Only one airline operates on certain routes.
- High aviation fuel costs: Fuel supply is solely provided by Puma Energy.
- Lack of transparency in ticket pricing.
- Weak consumer protection Papua New Guinea.
In many cases, passengers face very little choice. They are often forced to pay high Papua New Guinea airfares to travel.
Competition and Affordability Challenges
The ICCC's investigation is driven by a statutory mandate. This mandate is to promote competition and safeguard consumer welfare. The Commission previously rejected a 2020 bid by Air Niugini's subsidiary, Link PNG, to acquire a stake in PNG Air. This rejection was based on fears of creating a monopoly. This history underscores the persistent issue of market concentration.
Furthermore, the National Airports Corporation (NAC) holds a monopolistic control over airport infrastructure. This control, combined with the sole fuel supplier, contributes to high operational costs. These costs are then passed on to consumers.
ICCC Commissioner Roy Daggy stressed the inquiry is not about punishment. Instead, the aim is to find practical solutions. These solutions should improve services and reduce costs for the public. “Our goal is to ensure the aviation market works better for ordinary Papua New Guineans,” he stated.
Next Steps for the Inquiry
The ICCC is now inviting written submissions on the Draft Report. This process allows all stakeholders and the public to provide feedback. Submissions will remain open until February 20, 2026. All feedback will guide the final report's completion. The final recommendations are expected to guide future reforms. These reforms will focus on creating a more competitive, affordable, and reliable airline industry in PNG.
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Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
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