Papua New Guineans are to be offered the chance to own shares in state owned assets up for sale.
The government says that partial privatisation of Air Niugini, with 49 percent of the national airline to go on sale, will be the first in a series of privatisations.
The electricity provider, PNG Power, is also being considered for partial sale.
The Prime Minister Peter O'Neill says Papua New Guineans can feel a sense of pride in Air Niugini's record of service and will have opportunity to take further ownership of their airline.
"So we are encouraging our own citizens to take the first chance to purchase the initial issues of shares that are going to be done. If they are not fully subscribed, then we are going to turn to some of our own companies within the country, including the superannuation and others, give them the opportunity to purchase the additional capital through issue of shares that's going to be raised."