THE introduction of a QantasLink service from Cairns to Port Moresby last month has sparked a price war between airlines.

Air Niugini has launched all-inclusive airfares from $175 one-way for travel from August to the end of October, making it cheaper to travel to Papua New Guinea’s capital city than Brisbane, Sydney and Melbourne in many cases.

The cheapest airfares to those Australian capital cities yesterday ranged from $169 from Cairns to Brisbane and up to $389 to Sydney or Melbourne with Jetstar.

Air Niugini is also offering triple loyalty points until the sale ends on August 31.

QantasLink, meanwhile, is offering one-way, all-inclusive fares from $248 and double points to frequent flyers on its direct service.

Airlines PNG is offering all-inclusive regular fares from $200 one-way on the same route.

Air Niugini spokesman Colin Lyttle said the "very aggressive" airfare was introduced to compete with Qantas- Link.

"We wanted to remind our customers we operate nine times a week in and out of Cairns," he said.

He said Air Niugini was considering adding another two services to the Cairns to Port Moresby route.

A QantasLink spokeswoman said the airline was "extremely pleased" with passenger numbers on its new direct service.

It operated 12 services a week from Cairns to Port Moresby.

"We began the service because there is a great demand from mining and resources business people based in Queensland and Cairns," she said.

There are now 23 return services from Cairns to Port Moresby each week.

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