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However, the Government has been short in the cash department thus considering listing the State Owned Enterprise on the Port Moresby Stock Exchange.
The Government under Prime Minister Peter O’Neil has indicated of the possibility of listing the national carrier, Air Niugini, on the Port Moresby stock exchange. The main reason behind this move is to raise more capital to purchase two more dreamliners.
The travel from and to Papua New Guinea has risen to over 2 million people in the last year which has prompted the Government to consider purchasing two more dreamliners. However, the Government has been short in the cash department thus considering listing the State Owned Enterprise on the Port Moresby Stock Exchange.
One advantage on the listing of Air Niugini is that it may provide an opportunity for the average mum and dad investor to buy stock in Air Niugini. However, the ability of the average mum and dad to buy these shares will come down to the price per share and the minimum quantity. And like any investment the most important consideration is whether Air Niugini shares are worth investing in in terms of the potential to deliver positive return on investments.
If the price and minimum quantity of shares is high and beyond the average mum and dad investor then it’s likely that such a proposal to list will only be for the more wealthy and the corporates.
Most investors will be looking at the financials of Air Niugini whether it is a positive investment. Also a potential private/public partnership can shape the company for the better. That is, with the additional capital from the listing more assets and expertise can be invested on to make Air Niugini a truly world class airline.
From the general public point of view, the question one needs to pose is whether this would make airfares cheaper. Travelling by air has always been expensive on both the domestic and international routes and the public is more concerned about cheaper fares the beefing up an airline that holds a significant market share in the industry.
Perhaps the Government might consider creating policies (if it does not already have in place) that invite international airlines to compete in the routes with Air Niugini and hopefully reduce airfares.
There are other considerations to take into account but from a general public point of view, what would you prefer? An opportunity to become a part owner of the airline or cheaper fares or both?
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