Travel Air takes to the skies

Travel Air takes to the skies

By Patrick Matbob

23aug2011

Most Papua New Guineans have never heard of Eremas Wartoto. That was until he decided to start an airline. Today the big Tolai business man has become the talk of the nation, admired by some, and despised by others. The new PNG government is taking him to court after arresting and charging him last month. He is out on a K5,000 bail.

Wartoto welcoming Air Travel crew.

His ‘sin’ it seems was to get a K10m ‘subsidy’ from the PNG government to help him start his airline Travel Air. The subsidy issue sparked protests and accusations in political and business circles which eventually contributed to the change of government. Critics have accused him of getting favorable treatment from the last government.

Despite the controversy, Wartoto and his business partners have successfully delivered their first aircraft last month to Madang with six more to follow. They plan to begin domestic operations soon.

Wet welcome for new airline

Their achievements have been impressive so far with the arrival of the Fokker 50 from Netherlands. The plane was welcomed by the airline’s growing staff of more than 40 that included pilots, air crews, engineers and administrative officers.

Wartoto and his team of international executives were at pains to explain to journalists that theirs was not a ‘ghost’ operation and that everyone could see the result of their investments.

“I applied for the subsidy which I was given”, he said.

He explained that the fund was no different to the subsidies given by Asian Development Bank for coastal vessel subsidies to people starting shipping operations. He said he believed the attacks were politically motivated and that it was time politicians started respecting business houses and their ability to deliver services to the people.

 He HHH

He said he welcomed the investigation but urged the government to look at the process how the funding was given.

“Don’t blame me for the process. Don’t look at me. We delivered the intention for the subsidy”.

“Whatever money we got from the government is well spent,” he said. He said the F50 was a new type of aircraft in the country and money was also spent on overseas training for the Papua New Guinean staff.

“Our people can get a job in Netherlands or Australia”, he said as a result of the training.

He urged the government to publish the terms of reference saying the public were entitled to know where the investigation would lead to.

Meanwhile his company has plans to spend K150m over the next five years to build up the airline. The investment would include the delivery of another six aircrafts which would include F50s, a small Twin Otter and a large RJ85 jet that has 112 seats. Travel Air plans to build a new hangar in Madang which will include an engineering training centre.

The F50 is a familiar aircraft to many older Papua New Guinean travelers because it is modeled on the F27 which used to be operated by Trans Australian Airways and Ansett in PNG before independence. The new F50 has a more powerful turbo prop engine and carries 62 passengers.

Wartoto has invited investors including the Madang Provincial Government to invest in the venture.

“Any investor can look at the books and invest in the venture and I invite the provincial government to take up shareholding”.

The public in Madang and the Momase and Islands region have welcomed the new airline. Travel Air replaces another third level airline Airlink that use to operate out of Madang for many years but was closed down several years ago after a fatal air crash revealed serious safety issues.

The increase in competition which includes PNG Airlines which now operates an aircraft out of Madang, has caused a significant reduction in cost of air travel and given more options for travellers. When Airlink closed down, travelers in the northern and islands region were hit with increased airfares from the sole operator Air Niugini. There were no direct links between many of the provincial ports in the highlands, northern and islands regions and travelers were forced to travel to Port Moresby to get connections.

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