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Date Posted: 13:50:09 02/03/00 Thu
Author: Anonymous
Subject: Re: PNG PRIDE
In reply to: PNG 's message, "PNG PRIDE" on 06:41:09 02/03/00 Thu

The heads of corporations are political appointees, with a definite tenure.I think it’s more a matter of selection rather than the availability of talent. There is plenty of talent around, but given the nature of PNG politics and the proliferation of who-you-know appointments, no self respecting manager will even bother about giving the airline a try.

There are big and very serious impediment to developing efficient and effective management systems in PNG. Some of these are cronyism and regional or provincial prejudice. With such biases in place, not even the best manager can make the difference required to return the airline to its former self.

Given the asset base of the airline, the domestic market is limited and insufficient to support Air Niugini. It needs to expand to the international routes but one cannot do that with out massive recapitalisation.While early years saw growth, the lack of sustained growth over the years has seen a decline in the real value of its asset due to the lack of growth, double digit inflation and interest rates, especially over the last five years.

Economic issues aside, the hiring of cronies to replace workers previously retrenched on the basis of downsizing does not make sense to me. If Air Niugini wants to revive itself, it has to become a lean and mean organisation and adapt to doing with less people. The front end of its business are passengers. Unless it can increase this, then everything else is of no consequence.

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