Air NZ needs to work out how to grow the domestic market so that the Q400 is a one-size-fits-all solution. Running three types is just stupid.
A one size fits all solution would never work in the NZ market but of course would be a very sensible idea. Just think about the size of many of the towns served. Replacing frequencies with a bigger aircraft once a day will certainly not grow the market, it will go the other way! Time and time again the New Zealand market has proved frequency is the key.
Dropping services to far flung regions of the country may then make economic sense but with the government still the major shareholder, I just can't see it happening. They might say they are only a passive shareholder but I think we all know that from time to time they make their feelings known. If you can find a solution that appeases the accountants, the communities, the government, the opposition and everyone else this side of Timbuktu I would be impressed. In the meantime we carry on with the Link group maybe not making huge profits but at least it operates in the black.