Pictured: ICCC Commissioner, Paulus Ain (File Image)
The increase in domestic airfare recently announced by Air Niugini will inflict more pain to the struggling airline and will chase travelling public away, while it will continue to experience low revenue to sustain its operations.
This is according to the Commissioner of Independent Consumer and Competition Commission Paulus Ain.
Whilst Air Niugini is thinking that it will cover cost and will make sufficient return to sustain its operation by increasing the domestic airfares, the ICCC Commissioner, Paulus Ain described this as a commercial suicide, saying this is a misleading conclusion, a decision that will see the airline losing more clients and travelling public.
Mr Ain said under the current challenging environment, most travellers would not be travelling if the airfare is increased.
ICCC advises Air Niugini to reconsider its decision to increase domestic airfares, where it could consider increasing international airfares or alternatively spread the planned increases.
