PNG Airline Confirms $1M Boeing Deal

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Pacific Islands Development Program, East-West Center With Support From Center for Pacific Islands Studies, University of Hawai‘i

Down payment on 2018 four aircraft fleet upgrade

PORT MORESBY, Papua New Guinea (PNG Post-Courier, February 29, 2016) – Air Niugini chairman Sir Frederick Reiher has confirmed that the airline has made a $US1 million down payment to the manufacturers of the Boeing B737MAX airplanes.

He clarified that the figure quoted by Boeing of $US440 million (K1.36 billion) is a "catalogue price" for the four aircraft and not what Air Niugini will pay at settlement.

Sir Frederick also clarified that Air Niugini has ordered four new B737MAX airplanes and that the total price for the four aircraft from Boeing, the manufacturer, is about half of the catalogue price.

He confirmed that although US$1 million as "confirmation fee" – down payment – on Air Niugini’s order has been paid, the installment payments for the airplanes will not begin until about two years before production, or sometimes in 2018.


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