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December > Norfolk Island airline contract awarded
Norfolk Island airline contract awarded
21 December 2011
SC153/2011
Regional Australia Minister Simon Crean today announced Air New Zealand has been awarded the contract to operate regular return airline services to Norfolk Island from Brisbane and Sydney.
The Federal Government awarded the contract following a tender process for an underwritten air service to the Island.
Air New Zealand will commence services in March 2012 using a 168-seat A320 aircraft.
Minister Crean said the announcement was a great outcome and natural fit for the airline.
"Air New Zealand has operated into Norfolk Island since 1947 and has significant presence in the Tasman market,"
Mr Crean said.
"The airline currently operates a weekly service between Auckland and Norfolk Island.
"Attracting a carrier of this size and experience will kick-start Norfolk Island tourism activity and provide greater economic opportunities for the community.
"The contract means the Norfolk Island Government will no longer have to carry the huge financial cost of running an airline.
"Those funds can now be directed towards other important community services and infrastructure.
"The Federal Governments commitment to underwriting an air service to Norfolk Island is part of the broader strategy to achieve a sustainable future for the Norfolk Island community."
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"an underwritten air service to the Island." Give some more money away like they're good at.
"was a great outcome". Yes, for ANZ. Hard to see for whom else.
The new operator does not have to market things, they are going to get paid at any time the revenue falls below a nominated threshhold - their nominated threshold - and of which you can be sure represented a viable operation anyway and, as such, they have no incentive to spend money promoting things. In fact, the emptier they can fly an aeroplane, the better, because it costs less than a partially filled aeroplane and they get the subsidy up to their threshold NO MATTER WHAT!!! The pipe dream that it " will kick-start Norfolk Island tourism activity and provide greater economic opportunities" is just that, a pipe dream 'cos ANZ have no incentive to do anything other than collect the subsidy on a regular basis. Simple, just like our politicians.