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Licences for Domestic Commercial Air Services are issued under Part X- DOMESTIC AIR SERVICES of the Civil Aviation Act 2000 (as amended).

The Secretary of the Department of Transport is the Licensing Authority for Domestic Air Service Licences. Licences issued under this category are valid for a minimum period of 12 months and a maximum period of 24 months.

The domestic market is fully deregulated meaning airlines are at liberty to operate on any routes of choice in Papua New Guinea and utilizing any aircraft type subject to compliance with safety and security requirements of and suitability of airport infrastructure.

Domestic airlines are allowed to operate foreign-registered air crafts for six months only and after which the aircraft must leave the country. In any case, a foreign-registered aircraft are not permitted to remain in Papua New Guinea for periods exceeding 12 months. After 12 months the aircraft must either be placed on the PNG (P2) register or be exported.

Air Niugini (ANG) and Airlines PNG operate domestic services from Port Moresby.

ANG flies point-to-point services to main domestic airports, loop services to the Islands and Momase regions covering a further nine airports and some interconnecting services from the regional airports of Lae, Hoskins and Madang.

Airlines PNG operates first and second level services using mainly Dash-8, competing against ANG but also serving smaller airports from hubs at Daru and Port Moresby covering Western and Central Provinces using DHC-6 aircraft. Airlines PNG also flies on-demand and charter services to smaller airports, about 50 destinations in all.

Privately owned Travel Air, based in Madang, was certified to commence operations in November 2011 using four Fokker F50 turboprop aircraft. Initially operating daily scheduled flights between Madang and Port Moresby, Hoskins and Rabaul.

Another operator, a church-sponsored airline, serves remote rural airstrips throughout Papua New Guinea, but concentrated in the Highlands, for community support, mission, and emergency relief purposes, as well as commercial passengers and freight.

Other small fixed-wing and helicopter charter operators support the resource sector but also operates on general charter, flying into small airfields and remote worksites.

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