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the maori mobster
22nd Jan 2004, 10:08
Origin in link deal with KLM
22 January 2004
By STU OLDHAM

Nelson-based airline Origin Pacific has sealed a deal with KLM Royal Dutch Airlines that could open potentially lucrative markets for regional tourism.


And the provincial upstart won't stop there, with general manager of sales and marketing Ewan Wilson boasting more partnerships could be announced "sometime soon".

Mr Wilson confirmed today the deal would link Origin's domestic services with KLM's daily service from Kuala Lumpur to Auckland.

Under the agreement, KLM would provide international passengers travelling to and from New Zealand with a domestic add-on fare, while Origin would provide "a cost-effective alternative" to get them anywhere in its 15-centre network.

The agreement would also get the regional carrier closer to a network that spanned 75 countries, and give it new opportunities to grow its market, Mr Wilson said.

"We have just secured one of the most important stepping stones towards developing a much closer relationship with international airlines," Mr Wilson said.

"There had been a lot of comment about how airlines would fare as the Air New Zealand-Qantas thing moved through, and we expect this sort of innovation would have been an ideal answer."

Origin Pacific has been "reviewing strategies" since the proposed merger between Qantas and Air New Zealand threatened its codeshare agreement with Qantas last year.

The Commerce Commission ruled against the merger, but Air New Zealand plans to appeal.

In that context, Mr Wilson said connecting with KLM was future-proofing which would expose Origin to the ever-expanding international market channelled south from Asia.

Those new opportunities meant Origin could not rule out investing in bigger aircraft or more staff, or reaching similar agreements with other airlines.

"There has of course been some speculation about just where Origin would position itself, and just who it would work alongside. But from our perspective, the more the merrier," he said.

Latitude Nelson chief executive Paul Davis hoped the deal would bring Nelson closer to the lucrative European market. Nelson was unique in that more than half its tourists came from Europe, and being part of a network with direct links to Holland - traditionally a small market for the region - was "a very exciting prospect".

"Obviously the opportunity to grow the market is great news," Mr Davis said. "But even if Nelson Airport becomes the hub to send tourists elsewhere, the economic spin-offs, for example in terms of engineering, are right there."

Origin Pacific last year carried about one million passengers to 15 New Zealand centres, including Auckland, Hamilton, Wellington, Christchurch, Queenstown, and Dunedin.

KLM passengers fly to Auckland under a codeshare agreement with Malaysia Airlines. It operates under an alliance with Air France and, along with Air New Zealand is part of the Star Alliance group of airlines

Bankstown
22nd Jan 2004, 10:16
KLM in the Star Alliance? Since when?