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PNG Air to Lease Three ATR42-600 Aircraft from Local Owners

PNG Air to Lease Three ATR42-600 Aircraft from Local Landowner Companies
Three Papua New Guinean landowner companies have acquired new ATR42-600 turboprop aircraft, which will be leased to PNG Air under a long-term agreement, according to a recent government press release. Purchased directly from the manufacturer ATR - Avions de Transport Régional, these aircraft will be managed and operated by PNG Air and are intended to replace the airline’s ageing DHC-8-100 fleet.
Acquisition and Ownership Structure
The acquisition was facilitated through three Ok Tedi Mining shareholder entities: Mineral Resources Star Mountain, Mineral Resources Ok Tedi, and Mineral Resources CMCA. Ok Tedi Mining, a prominent mining company in Papua New Guinea, currently depends on fly-in/fly-out charters operated by Pacific Direct and Hevilift (PNG), which utilize three DHC-8-100s and a DHC-6-400 respectively. The introduction of the ATR42-600s, contracted to Ok Tedi Mining, is expected to streamline operations and modernize the fleet supporting mining activities.
Augustine Mano, managing director of Mineral Resources Development Company (MRDC), highlighted the significance of this transaction, noting, “This is history because, for the first time, landowners are buying aircraft directly from the factory and leasing them to a major airline company under a long-term arrangement.” He further indicated that additional landowner companies are anticipated to acquire three more aircraft in the future.
Delivery and Fleet Modernization
The first ATR42-600, registered as P2-ATT (msn 1804), departed ATR’s Toulouse facility on May 20 and arrived in Port Moresby on May 26, 2026, following multiple stops across Europe and Asia. The aircraft sports PNG Air’s standard livery. PNG Air confirmed via social media that the aircraft is owned by Ok Tedi Mining Ltd (OTML) landowners and will be managed and operated by PNG Air across its network.
This leasing arrangement aligns with PNG Air’s broader strategy to modernize its fleet, which currently includes Dash 8 aircraft averaging 40 years in age, according to ch-aviation data. The airline’s existing fleet comprises one ATR42-600, nine ATR72-600s, one inactive ATR72-600C, four DHC-8-100s (one inactive), and one inactive DHC-8-100(PF). PNG Air aims to expand its ATR fleet to approximately 18 aircraft in the near term.
Challenges and Market Context
The transition to a modernized fleet presents several challenges. PNG Air must navigate Papua New Guinea’s regulatory environment, ensure the financial viability of integrating new aircraft, and manage operational adjustments alongside its existing fleet. The regional aviation market is also evolving, with competitors such as Berjaya Air expanding their ATR 72-600 fleets, potentially intensifying competition and prompting strategic adjustments in fleet composition and pricing.
Furthermore, recent developments in the global aircraft leasing sector, including Dubai Aerospace Enterprise’s divestiture of its A220 fleet to Azorra, highlight the dynamic nature of aircraft leasing markets. These shifts could influence PNG Air’s negotiation leverage and market positioning as it pursues fleet expansion.
It remains unclear whether this MRDC-facilitated transaction overlaps with PNG Air’s previously announced ATR orderbook. The airline recently took delivery of the first of three ATR42-600s on its direct order, registered as P2-ATU (msn 1216), on May 10, 2026. PNG Air has yet to provide further details regarding the relationship between these acquisitions.

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