The Asian Development Bank (ADB) has entered into a significant partnership with Air Niugini, committing $35.8 million to modernize the national airline’s fleet in Papua New Guinea. This strategic financing aims to enhance operational efficiency, elevate safety standards, and strengthen both domestic and international air connectivity for the nation.
The financing package is composed of a $19 million loan from ADB’s capital resources, supplemented by a $16.8 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2), which is administered by ADB. The funds will facilitate the acquisition of six Airbus A220-100 aircraft, replacing older models with these new, more reliable, and fuel-efficient planes.
Soon Chan Hong, the Officer-in-Charge of ADB’s PNG Resident Mission, emphasized the project’s alignment with ADB’s commitment to sustainable and inclusive development within Papua New Guinea. He stated, “By supporting Air Niugini’s fleet renewal, we aim to improve the country’s connectivity, boost economic growth, and enhance air travel safety in the Pacific region.”
In Papua New Guinea, air travel is vital due to the country’s challenging geographic terrain and limited land transport infrastructure. Air Niugini serves as a critical link, connecting various communities both throughout the archipelago and internationally.
The newly acquired Airbus A220-100 aircraft are anticipated to deliver a 20 percent improvement in fuel efficiency compared to older aircraft models, thereby reducing operational costs and minimizing environmental impact. This modernization not only represents a significant financial investment but also underscores the potential for increased economic opportunities and improved safety in air travel across the Pacific.