According to the company's board member, all PNG Air employees will be retained after the acquisition by Link PNG.
The key goal of the acquisition, according to PNG Air chairman Augustine Mano, is to achieve a viable airline industry in order to secure PNG Air's future, creditors, and personnel said a letter from the board to management and staff of PNG Air.
He said the board had reviewed and considered all practicable alternatives for reforming the company to resolve the continuing effect of the COVID-19 pandemic on domestic and foreign travel when it decided to endorse the 40 per cent shareholding to Link PNG.
He stated that this agreement needs ICCC approval and that an application to that effect has been filed, with shareholder approval expected shortly.
Mr Mano stated that the Memorandum of Understanding (MOU) signed in January 2021, as well as the recommendations submitted and staff questions, have all been resolved.
He also said that all employees would be kept.
PNG Air will continue to operate as a standalone carrier with its own board of directors and management.
This is done while maintaining the identity, with the exception of areas where resource maximisation is needed to allow shareholder returns.
He promised that rivalry with Air Niugini will continue until cost-cutting measures are identified and introduced.
He went on to say that the benefits from this joint venture would help all core stakeholders, including employees and the general public, who will benefit from lower airfares.
