Are you sure you can't check baggage all the way through? I've done it after arriving at BNE on at least 4 different airlines. Just go to the transfer desk, show the bag claim number, and they do the rest. Seems weird that it would require entering Australia only to check in again, rather than going to the transfer desk while in transit. But I have not had to do this myself so can't be sure.
If you did have to go through immigration and customs with your luggage, check in upstairs, then go back through the process the other direction, 2 hours is comfortable. BNE is not large and rarely very congested, and once you're checked in you're safe.
I am pretty sure. Though I will update this thread after my trip. Apparently air nuigini doesn't want to play nice with virgin Australia, because VA has created competition by not screwing the consumer flying into png. So they don't want to work with them at all. The more I read about the travel issues....the costs....the worrying about safety...png is really not appealing. I am excited for the trip, but I have stressed about this more than any other trip I have had. We will see if it's all for not. We are going to be about 30 lbs over each for the interior flight. So hopefully they don't charge us $2000. Which is what I read from some blogs.
I did learn yesterday, that there is a later flight in the day from Bne to Pom. So I am not as concerned with the 2 layover anymore. I thought it was once a day kind of deal. If we miss it they said we would just get put on that later flight.