Air Niugini Limited is the flag carrier of Papua New Guinea, based in Air Niugini House on the site of Port Moresby International Airport, Port Moresby. It operates a domestic network from Port Moresby to 12 major airports while its subsidiary company, Link PNG, operates routes to minor airports. It also operates international services in Asia, Oceania, and Australia on a weekly basis. Its main base is Port Moresby International Airport, which is located in 7 Mile, Port Moresby, Papua New Guinea. Niugini is the Tok Pisin word for New Guinea.

The airline was established in November 1973 as the national airline of Papua New Guinea with the government holding 60% of the shares, with the rest divided between Australian airline companies Ansett (16%), Qantas (12%) and Trans Australia Airlines (TAA) (12%). It started as an exclusively domestic carrier, but soon expanded to offer international services. In founding the airline, the government aimed to encourage regional development in a country without an extensive road network. The airline was established using DC-3 and Fokker F27 aircraft.

In 1975 when PNG gained independence from Australia, pilots from the two airlines operating for the government were from Ansett Australia and Trans Australia Airlines. The majority of these pilots elected to return to these companies and continue their careers in Australia. This left a huge shortage in the pilot strength (over 95%) and consequently replacements were recruited from both Australia and New Zealand.^{[citation needed]} These pilots had little or no experience in airline operations and few if any skills or experience operating in the extremely hostile environs of PNG.^{[citation needed]}

Nonetheless, they were trained by the outgoing pilots from Ansett and TAA and with the first class training behind them continued to provide safe and reliable services to all of PNG. When Air Niugini took over the international routes - then operated by Qantas - once again the senior pilots were called upon to convert from basic turboprop aircraft (F27) to B707-338C 4-engine jet aircraft.^{[citation needed]} Considerable alarm was expressed that these "jungle pilots" could not possibly operate large jet aircraft hitherto flown by Qantas flight crews. Again with excellent training and support from Qantas, the PX crews converted successfully to the venerable B707 and from there took over all the check and training on those two aircraft and continued thereafter to the various replacement aircraft being primarily A300-B4, A310-300, B757 and B767.^{[citation needed]}

There were two crashes internally on the domestic operation with the total loss of one F28 aircraft and one DHC7, both due to pilot error. No deaths or injuries occurred in either crash.^{[citation needed]}

International services commenced very early on in the history of the airline with a leased Boeing 720 from 6 February 1976 to 2 February 1977. This was later replaced with a Boeing 707 purchased from Qantas. During the late 1970s, internal services were performed by a combination of Fokker F28 jet and Fokker F27 turbo-prop aircraft. By the end of 1975 Air Niugini leased Boeing 727-200 type aircraft from Ansett and TAA to serve routes to Brisbane. The airline also acquired a lease of a Boeing 707 from Qantas to commence a weekly service to Manila and Hong Kong. In 1976, the government bought out the Qantas and TAA holdings and in 1980 acquired the Ansett shares to make the airline wholly government owned. The fleet of F-27s was phased out in the early 1980s with the introduction of the newly developed de Havilland Canada Dash 7 four-engine turbo-prop.

In 1979, Air Niugini opened routes to Honolulu and to Singapore via Jakarta. That same year, new facilities were opened at Jacksons Airport and new Sales Offices opened in Hong Kong, Tokyo, Europe and the United States. Air Niugini operated their Boeing 707 from Auckland to Hong Kong via Port Moresby in a tripartite agreement with Air New Zealand and Cathay Pacific. This service ran from 1981 to 1985.

In 1984, the airline replaced the two Boeing 707 aircraft with an Airbus A300 on lease from TAA. This was replaced several years later with two Airbus A310s as the carrier expanded to offer flights principally between Australian Eastern capital cities and destinations in Asia such as Singapore and Manila via their hub Port Moresby.^{[citation needed]}