Lack Of Standardisation With Onset Of Obsolescence Can Lead To High Cost Of Ownership For Air Niugini

Air Niugini’s (ANG’s) fleet consists of three Boeing 767, two Boeing 737, two Bombardier Dash 8-100*, four Bombardier Dash 8-200*, three Bombardier Dash 8-300* and six Fokker 100 aircraft. ANG has one Boeing 787 on order.

This article below is from a post by Exepreneur on 25th June 2023 on Air Niugini when unforeseen technical difficulties with two of the airline’s Boeing 767 aircraft were both temporarily rendered unserviceable in Brisbane, Australia. This had led to major adjustments in Air Niugini’s flight schedules, disrupting travel plans for passengers both domestically and internationally but incurring the high cost of ownership and one among them is reputational loss.

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“๐˜ˆ๐˜ช๐˜ณ ๐˜ต๐˜ณ๐˜ข๐˜ฏ๐˜ด๐˜ฑ๐˜ฐ๐˜ณ๐˜ต ๐˜ง๐˜ข๐˜ค๐˜ช๐˜ญ๐˜ช๐˜ต๐˜ข๐˜ต๐˜ฆ๐˜ด ๐˜ช๐˜ฏ๐˜ต๐˜ฆ๐˜จ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ฆ ๐˜จ๐˜ญ๐˜ฐ๐˜ฃ๐˜ข๐˜ญ ๐˜ฆ๐˜ค๐˜ฐ๐˜ฏ๐˜ฐ๐˜ฎ๐˜บ ๐˜ข๐˜ฏ๐˜ฅ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ท๐˜ช๐˜ฅ๐˜ฆ๐˜ด ๐˜ท๐˜ช๐˜ต๐˜ข๐˜ญ ๐˜ค๐˜ฐ๐˜ฏ๐˜ฏ๐˜ฆ๐˜ค๐˜ต๐˜ช๐˜ท๐˜ช๐˜ต๐˜บ ๐˜ฐ๐˜ฏ ๐˜ข ๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ, ๐˜ณ๐˜ฆ๐˜จ๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ, ๐˜ข๐˜ฏ๐˜ฅ ๐˜ช๐˜ฏ๐˜ต๐˜ฆ๐˜ณ๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ ๐˜ด๐˜ค๐˜ข๐˜ญ๐˜ฆ. ๐˜๐˜ต ๐˜ฉ๐˜ฆ๐˜ญ๐˜ฑ๐˜ด ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ฆ ๐˜ต๐˜ณ๐˜ข๐˜ฅ๐˜ฆ, ๐˜ฑ๐˜ณ๐˜ฐ๐˜ฎ๐˜ฐ๐˜ต๐˜ฆ ๐˜ต๐˜ฐ๐˜ถ๐˜ณ๐˜ช๐˜ด๐˜ฎ, ๐˜ข๐˜ฏ๐˜ฅ ๐˜ค๐˜ณ๐˜ฆ๐˜ข๐˜ต๐˜ฆ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ฐ๐˜ฑ๐˜ฑ๐˜ฐ๐˜ณ๐˜ต๐˜ถ๐˜ฏ๐˜ช๐˜ต๐˜ช๐˜ฆ๐˜ด” says World Bank.

However, when unexpected technical difficulties arise, airlines face the daunting task of maintaining their operations while ensuring passenger safety.

Air Niugini, the national airline of Papua New Guinea (PNG), is facing a difficult situation as it deals with a longer-than-expected repair time for its Boeing 767 planes.

The Acting Chief Executive Officer, Gary Seddon states that unforeseen technical difficulties with two of the airline’s Boeing 767 aircraft have rendered them both temporarily unserviceable in Brisbane, Australia leading to major adjustments in Air Niugini’s flight schedules, disrupting travel plans for passengers both domestically and internationally.

Beyond the inconvenience to travelers, flight disruptions also have economic consequences. PNG heavily relies on air transport for both domestic connectivity and international trade. Business travelers, who depend on consistent flight schedules, face challenges in conducting their operations smoothly. The country’s tourism sector which has started to recover from the  Covid19 impact suffers setbacks due to the disruptions, impacting revenue and employment in related industries.

“๐˜‹๐˜ถ๐˜ฆ ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ฐ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฆ๐˜น๐˜ช๐˜ต๐˜บ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ณ๐˜ฆ๐˜ฒ๐˜ถ๐˜ช๐˜ณ๐˜ฆ๐˜ฅ ๐˜ณ๐˜ฆ๐˜ฑ๐˜ข๐˜ช๐˜ณ๐˜ด ๐˜ข๐˜ฏ๐˜ฅ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ท๐˜ข๐˜ช๐˜ญ๐˜ข๐˜ฃ๐˜ช๐˜ญ๐˜ช๐˜ต๐˜บ ๐˜ฐ๐˜ง ๐˜ด๐˜ฑ๐˜ข๐˜ณ๐˜ฆ ๐˜ฑ๐˜ข๐˜ณ๐˜ต๐˜ด, ๐˜ธ๐˜ฆ ๐˜ข๐˜ฏ๐˜ต๐˜ช๐˜ค๐˜ช๐˜ฑ๐˜ข๐˜ต๐˜ฆ ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜ณ๐˜ฆ๐˜ด๐˜ต๐˜ฐ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ด๐˜ด ๐˜ฎ๐˜ข๐˜บ ๐˜ต๐˜ข๐˜ฌ๐˜ฆ ๐˜ญ๐˜ฐ๐˜ฏ๐˜จ๐˜ฆ๐˜ณ ๐˜ต๐˜ฉ๐˜ข๐˜ฏ ๐˜ช๐˜ฏ๐˜ช๐˜ต๐˜ช๐˜ข๐˜ญ๐˜ญ๐˜บ ๐˜ฆ๐˜น๐˜ฑ๐˜ฆ๐˜ค๐˜ต๐˜ฆ๐˜ฅ. ๐˜ž๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ฉ๐˜ฐ๐˜ฑ๐˜ฆ๐˜ง๐˜ถ๐˜ญ ๐˜ต๐˜ฐ ๐˜ฉ๐˜ข๐˜ท๐˜ฆ ๐˜ฐ๐˜ฏ๐˜ฆ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ธ๐˜ช๐˜ฅ๐˜ฆ๐˜ฃ๐˜ฐ๐˜ฅ๐˜บ ๐˜ข๐˜ช๐˜ณ๐˜ค๐˜ณ๐˜ข๐˜ง๐˜ต ๐˜ฐ๐˜ฑ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ ๐˜ฃ๐˜บ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฆ๐˜ฏ๐˜ฅ ๐˜ฐ๐˜ง ๐˜š๐˜ถ๐˜ฏ๐˜ฅ๐˜ข๐˜บ 25 ๐˜‘๐˜ถ๐˜ฏ๐˜ฆ. ๐˜›๐˜ฉ๐˜ฆ ๐˜ฑ๐˜ข๐˜ณ๐˜ต๐˜ด ๐˜ธ๐˜ฆ๐˜ณ๐˜ฆ ๐˜ด๐˜ฆ๐˜ค๐˜ถ๐˜ณ๐˜ฆ๐˜ฅ ๐˜ง๐˜ณ๐˜ฐ๐˜ฎ ๐˜ต๐˜ฉ๐˜ฆ ๐˜œ๐˜š ๐˜ข๐˜ฏ๐˜ฅ ๐˜ด๐˜ฉ๐˜ช๐˜ฑ๐˜ฑ๐˜ฆ๐˜ฅ ๐˜ฐ๐˜ท๐˜ฆ๐˜ณ๐˜ฏ๐˜ช๐˜จ๐˜ฉ๐˜ต

โ€œ๐˜›๐˜ฉ๐˜ฆ ๐˜ฐ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ ๐˜ข๐˜ช๐˜ณ๐˜ค๐˜ณ๐˜ข๐˜ง๐˜ต ๐˜ธ๐˜ช๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ ๐˜ถ๐˜ฏ๐˜ข๐˜ท๐˜ข๐˜ช๐˜ญ๐˜ข๐˜ฃ๐˜ญ๐˜ฆ ๐˜ง๐˜ฐ๐˜ณ ๐˜ญ๐˜ฐ๐˜ฏ๐˜จ๐˜ฆ๐˜ณ ๐˜ต๐˜ฉ๐˜ข๐˜ฏ ๐˜ฆ๐˜น๐˜ฑ๐˜ฆ๐˜ค๐˜ต๐˜ฆ๐˜ฅ, ๐˜ข๐˜ด ๐˜ธ๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ฑ๐˜ฆ๐˜ณ๐˜ง๐˜ฐ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜จ ๐˜ข๐˜ฏ ๐˜ฆ๐˜ฏ๐˜จ๐˜ช๐˜ฏ๐˜ฆ ๐˜ค๐˜ฉ๐˜ข๐˜ฏ๐˜จ๐˜ฆ, ๐˜ฐ๐˜ฏ๐˜ค๐˜ฆ ๐˜ข ๐˜ด๐˜ฑ๐˜ข๐˜ณ๐˜ฆ ๐˜ฆ๐˜ฏ๐˜จ๐˜ช๐˜ฏ๐˜ฆ ๐˜ฉ๐˜ข๐˜ด ๐˜ฃ๐˜ฆ๐˜ฆ๐˜ฏ ๐˜ฎ๐˜ฐ๐˜ท๐˜ฆ๐˜ฅ ๐˜ต๐˜ฐ ๐˜‰๐˜ณ๐˜ช๐˜ด๐˜ฃ๐˜ข๐˜ฏ๐˜ฆ,” the CEO says

The Airline adds that it is working closely with its industry partners and evaluating the possibility of โ€˜wet leasingโ€™ additional aircraft to supplement its fleet and minimize service disruptions.

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Reading through this press release you could sense this underlying challenge of a prevalent lack of standisation as well as a lack of strategic foresightedness (i.e. the complexities of the challenges increases with longer time horizons as this brings increase uncertainties and more variables and requires strategic foresightedness to mitigate the risks associated with obsolescence).

Standardisation in physical asset intensive industries, according to “R.A.I” http://reliability.ai/ Chatbot, is a continuous improvement endeavour that aims to lower operational cost, optimise performance as well as improve safety in industries such as in the airlines where safety of people is of the utmost paramount. Standardisation in maintenance refers to the process of establishing and implementing consistent practices and procedures for maintenance activities. This can include standardising equipment maintenance procedures, work instructions and job plans. Standardisation helps to ensure that maintenance activities are performed consistently and efficiently, which can improve equipment reliability, reduce downtime and increase safety. Standardisation can also help to streamline maintenance processes and reduce cost by eliminating unnecessary steps and reducing the need for rework.

The challenge with Standardisation is made harder with obsolescence and unstable BOD and Exec. Mgmnt not providing the strategic foresight to mitigate this risk of obsolescence.

Not many airlines operate B767 anymore and hence parts supply would be an issue. Boeing began developing the B767 nearly half a century ago. The model sold well during the 1980s and 1990s but demand plunged after 9/11 attacks. By 2030 it is expected that Boeing will cease manufacturing of B767. ANG need to move forward faster with the B787 deals to ease up the international routes and free up the 737 for major domestic routes like Lae and Hagen. But this lack of strategic foresight in mitigating the risk of obsolescence can be attributed to instability at the BOD and Exec. Mgmnt levels.

The quicker things change and the suppliers of aircraft fleet parts go out of business then the parts become obsolete. The risk associated with obsolescence includes safety, reputational loss and the economic cost of: re-fleeting the production assets (in this instance the aircrafts); restocking of new inventory of parts to support the new fleet; reviewing of maintenance systems (policies, standards and procedures); and upskilling/licensing of maintenance personnel as well as pilots to maintain and operate the new fleet.

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