Air New Zealand pull back from the regions

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#1173122 11-Nov-2014 21:09

Here you go. Sorry. No hyperlink on mobile

http://www.airnewzealand.co.nz/press-release-2014-air-new-zealand-to-retime-dunedin-auckland-service

My views (except when I am looking out their windows) are not those of my employer.

Batman

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#1173132 11-Nov-2014 21:15

it's very hard to run a business servicing a unique area like NZ. very expensive to go to remote areas where the passenger numbers are low and costs are high.

are they doing the right thing? socially probably no, business sense probably yes, country economy sense probably no.

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#1173134 11-Nov-2014 21:16

In Australia semi remote towns (bigger than "some" of our "cities") it's not uncommon to have to drive 10 hrs to an airport. Cue rockhampton for example. (I think that's what it's called)

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#1173138 11-Nov-2014 21:25

joker97: In Australia semi remote towns (bigger than "some" of our "cities") it's not uncommon to have to drive 10 hrs to an airport. Cue rockhampton for example. (I think that's what it's called)

Rocky has a large, well serviced airport. Used to fly there from Brisbane regularly.

Must be thinking of somewhere else?

Fred99

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#1173144 11-Nov-2014 21:40

Reductio ad absurdum.

Get rid of all the least profitable routes, until NZ domestic airline travel consists of direct flights from Mangere to Mangere, in the largest most efficient aircraft available.

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#1173146 11-Nov-2014 21:42

myfullflavour:
We have recently undertaken a comprehensive review of our regional network, including looking at the aircraft we operate and the destinations we service. As a result there are several changes being made. Learn more here: http://airnz.co.nz/regionalchanges

It's a shame Whakatane is being pulled (I can't comment on the other regions) as I understood it was well used by local residents.

We lost Masterton to Auckland last year and a new company was due to take it on wef November this year (not ANZ related) but they have gone bust too.

It was expensive ($350 each way sometimes) but saved heaps of time and the parking is free at the 'airport' in Masterton!

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#1173151 11-Nov-2014 21:53

Geektastic: We lost Masterton to Auckland last year and a new company was due to take it on wef November this year (not ANZ related) but they have gone bust too.

It was expensive ($350 each way sometimes) but saved heaps of time and the parking is free at the 'airport' in Masterton!

Whatever happened to Air Wairarapa? Many years ago I remember they used to do direct flights to Auckland and Christchurch in small Pipers.

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#1173159 11-Nov-2014 21:57

alasta:
Geektastic: We lost Masterton to Auckland last year and a new company was due to take it on wef November this year (not ANZ related) but they have gone bust too.

It was expensive ($350 each way sometimes) but saved heaps of time and the parking is free at the 'airport' in Masterton!

Whatever happened to Air Wairarapa? Many years ago I remember they used to do direct flights to Auckland and Christchurch in small Pipers.

I think they ran out of elastic bands....

kiwigander

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#1173166 11-Nov-2014 22:13

If there's demand for air services in some of these towns what's to prevent another Origin Pacific or the like from starting up - or one or more of the existing minnows from expanding?

(IIRC Origin was building its business well but erred by letting itself become dependent on a feeder arrangement with Qantas, and couldn't recover when Qantas suddenly pulled the rug.)

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#1173281 12-Nov-2014 07:15

kiwigander: If there's demand for air services in some of these towns what's to prevent another Origin Pacific or the like from starting up - or one or more of the existing minnows from expanding?

(IIRC Origin was building its business well but erred by letting itself become dependent on a feeder arrangement with Qantas, and couldn't recover when Qantas suddenly pulled the rug.)

Jetstar employed Grant Kerr (the ex Air Nelson boss) as their NZ head because of his intimate knowledge of Air Nelson routes and business. This ended up in the employment court due to a restraint of trade clause, and Air NZ lost.

It's long been rumoured JQ were going to deploy Q400s on some NZ regional routes and this was the driver for employing him, but rumour has it they simply can't make the numbers work, and with QF is a cost cutting mode at present with their massive losses apparently the last thing they want to do in NZ is lose more money simply to gain some market share.

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#1173328 12-Nov-2014 09:32

freitasm: Taupo?

I understand some regions - Palmerston is about a 90 minutes car drive from WLG, but Taupo is half-way from WLG - AKL, so a flight there would be a given.

I don't understand why they are killing Palmerston North. The city has a catchment area of a million people and when flights were reasonably-priced it was the airport servicing an area from New Plymouth to Napier and south to Kapiti. In the days of Ansett, Qantas, Air NZ and regional airlines servicing the lower north island plus all the freight activity, Palmy airport was a hopping place. It was also an international airport with direct flights to Australia. Air NZ undercut and killed off the competition, then they pulled the international service, then fares went sky-high while at the same time schedules were pulled right back. Passenger numbers dropped off as a result. The conference industry died. Companies that were using the city as their lower north island transport hub went. And the city, that invested millions into airport infrastructure, had the economic rug pulled from under it. Ratepayers are still paying for the airport and roading changes that were put in place to handle the larger planes and traffic of an international airport.

The hospital here services a huge area, from Gisborne down. Oncology services for people from Gisborne, New Plymouth and Napier were all provided ex Palmerston North. When direct flights ended, so did those services. Now residents of those cities go to Auckland for treatment.

Economically, every move Air NZ has made with its services (or, rather, lack of them) to Palmerston North have negatively impacted on the economy of the city. Adding to this, the rail service is almost non-existent and the service to Kapiti and on to Wellington is due to go. Daily commuting will have to be by road, or people will have to sell up and move. Years ago, I did a daily commute from Auckland to Palmy for work. It was easy - drive from Mt Eden, red eye to Palmy, I worked the day and flew back in time for dinner. I did that for six months, the last four of which saw my daughter coming with me to go to school in Palmy. By comparison, when I flew back from Montreal at the end of August, there were only two flights in the entire Saturday on which I could get home. Missed the first so had to wait five hours.

AirNZ is a for-profit business. I don't blame AirNZ for the lack of services to this region. I blame the government. They can take whatever measures they like to cool the Auckland housing market but until they realise that there are economic benefits to the country in supporting some of the provincial centres those centres do not make a viable alternative for either living or business. As it is, Auckland is cannibilising the country.

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#1173329 12-Nov-2014 09:32

A small operator may pick these locations up, BUT, they will need to rely on full flights. That may mean less frequent, people will complain. It may mean flights get cancelled as not full, people will complain. It may mean higher fares, people will complain.

And no, its not a social cost, its a 100% financial cost, the company isn't there to provide charity.

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#1173333 12-Nov-2014 09:36

Elpie:
freitasm: Taupo?

I understand some regions - Palmerston is about a 90 minutes car drive from WLG, but Taupo is half-way from WLG - AKL, so a flight there would be a given.

I don't understand why they are killing Palmerston North. The city has a catchment area of a million people and when flights were reasonably-priced it was the airport servicing an area from New Plymouth to Napier and south to Kapiti. In the days of Ansett, Qantas, Air NZ and regional airlines servicing the lower north island plus all the freight activity, Palmy airport was a hopping place. It was also an international airport with direct flights to Australia. Air NZ undercut and killed off the competition, then they pulled the international service, then fares went sky-high while at the same time schedules were pulled right back. Passenger numbers dropped off as a result. The conference industry died. Companies that were using the city as their lower north island transport hub went. And the city, that invested millions into airport infrastructure, had the economic rug pulled from under it. Ratepayers are still paying for the airport and roading changes that were put in place to handle the larger planes and traffic of an international airport.

The hospital here services a huge area, from Gisborne down. Oncology services for people from Gisborne, New Plymouth and Napier were all provided ex Palmerston North. When direct flights ended, so did those services. Now residents of those cities go to Auckland for treatment.

Economically, every move Air NZ has made with its services (or, rather, lack of them) to Palmerston North have negatively impacted on the economy of the city. Adding to this, the rail service is almost non-existent and the service to Kapiti and on to Wellington is due to go. Daily commuting will have to be by road, or people will have to sell up and move. Years ago, I did a daily commute from Auckland to Palmy for work. It was easy - drive from Mt Eden, red eye to Palmy, I worked the day and flew back in time for dinner. I did that for six months, the last four of which saw my daughter coming with me to go to school in Palmy. By comparison, when I flew back from Montreal at the end of August, there were only two flights in the entire Saturday on which I could get home. Missed the first so had to wait five hours.

AirNZ is a for-profit business. I don't blame AirNZ for the lack of services to this region. I blame the government. They can take whatever measures they like to cool the Auckland housing market but until they realise that there are economic benefits to the country in supporting some of the provincial centres those centres do not make a viable alternative for either living or business. As it is, Auckland is cannibilising the country.

I blame successive governments for failing to actually build a decent 6 lane motorway from Auckland to Wellington. Not only would it shave hours off the drive, it would make moving goods more efficient and thus cheaper, it would save lives by being properly designed and it would provide work (although the designers and engineers would need to come from overseas to ensure we actually get a decent road)

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#1173336 12-Nov-2014 09:39

"The decision has angered Whakatane mayor Tony Bonne, particularly after the council and the Government had jointly invested $180,000 on new airport lighting following the airline's request.

Mr Bonne said the national carrier had previously denied having any plans to cancel flights from the district, even when he asked them outright if a dramatic increase in airfares six months ago was a move to drive customers out of Whakatane Airport and to Tauranga or Rotorua." - Herald

But it's not all bad news:

"Tauranga-based Sunair Aviation chief executive Dan Power has already said his company could take over the Whakatane to Auckland route and planned to meet with the district council within the next few days."

richrdh18

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#1173511 12-Nov-2014 12:38

Why would anyone fly between Hamilton and Auckland? Surely its quicker to drive.

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