Air New Zealand NZ Support for Regional Services

[kaikohe76]

Air New Zealand have recently cancelled the 0700 departure from Kerikeri, which would have given folk a full day in Auckland before returning home, they have also announced, there will no longer be any direct flights from Auckland to Wanganui. This combined with the cut back on a number of other regional services, poses the question, do Air New Zealand have any interest in continuing with & supporting regional services in the future?
Yes regional services cost like any other operation, but where I live, we have no rail system at all, poor roads (NZ First Electorate not National!!), infrequent long range bus services & when driving you have to dodge the very many multiple trailer logging trucks.
I would have thought, that Air New Zealand with their large war chest & annual profits, could at least show some interest in providing viable services to the odd regional outpost within New Zealand. I do appreciate, that our national carrier is much more interested in providing long haul services to the far East, but does not charity begin at home & one day you might just be happy for our patronage?

[NZScion]

A cursory glace for me on the air nz website still shows flights departing Kerikeri for Auckland at 0655 over the next three months. All of the fares I saw had 'seat' tickets available for under $80. Whats the issue?

If Air NZ can't make money out of services like Wanganui, why should they have to continue? Air Chats is already making noises about taking that one over...

[waren9]

air nz does not have a large war chest. and in any case its for war. not for propping up routes that dont pay; they only erode the war chest.

funny how its our "national carrier" sometimes and yet theres never any shortage of takers for jetstars $39 fares.

nz first? you get what you vote for there, son.

air nz is just like any other listed company. its obligation is to its shareholders. it is not a "charitable" organisation.

air nz tried really hard with execs visiting the regions, talking to business leaders etc about viability and "use it or lose it" etc. seems in some cases it hasnt worked.

and as scion notes, there will be an another operator along soon to give it a go. its not all bad.

[Lindstrim]

Umm you have noticed they are moving it to 6am?

Air New Zealand makes adjustments to regional schedule - Media releases 2016 - Media Centre - Company Information - Air New Zealand (http://www.airnewzealand.co.nz/press-release-2016-air-new-zealand-makes-adjustments-to-regional-schedule)

[empacher48]

I do find it funny that people in NZ find "profit" and "making money" to be dirty words. If a company turns a profit here, it is perceived to be gouging customers, but when a company goes bankrupt because it didn't turn a profit, people scratch their heads wondering why they didn't price themselves appropriately.

Air New Zealand, although being 53% Government owned, is not a government department so is under no obligation to provide any services to any destination that doesn't make a profit for the airline.

There are no subsidies available by the government to fly routes that are marginal either (except for some regions who may have "helped" the Australians set up a poor excuse for a regional operation in NZ - give me Air Chats running a regional operation any day!).

For those who are complaining the most about loosing the air service would most likely be the ones who would prefer to drive elsewhere to fly in the perception that it will be cheaper.

Last time I flew out of Auckland, the cost of car parking alone for two weeks was about the same price as driving my car three hours to Tauranga, parking it there and flying back to Auckland!

[kaikohe76]

No axe to grind at all folks, more just my take on the situation as is seemed, glad that we are getting the 0600 departure from Keri. Thanks for your thoughts.

[cavemanzk]

At the end of the days, the regions begged for Jetstar to come to there towns and that airfares we're to expenses.

Instead the regions are now learning the reality of business and the true cost of running an air-service to an small town. With the JQ introduction NZ has been forced to review all its regional cost to keep its self profitable, therefore any regional route that is bleeding will get axed.

WAG-AKL it didn't really need an service, PMR is an 45minute drive away. Jetstar starting PMR pretty killed the need to WAG to get services. 45minutes is an pretty short drive, it can take 45minutes to do an 20km drive within Auckland to get to the airport!

[Kiwithrottlejockey]

I guess Jetstar cherry-picking certain routes and ignoring others would have a lot to do with it.

[Water Wings]

Air New Zealand is trying to cut costs where ever possible at the moment. Kicking out some more routes, getting rid of the B1900Ds, retiring a 767 and they are about to retire some of the ATR72-500s... It is clear that they are feeling the pinch that Qantas Group is putting against Air New Zealand.
Much of what you outline are decisions that well and truely predate JQ arriving in the regional market. As for retiring the 500s, you make it sound like there is a scaling back of operations. I'd hardly say spending big on one for one replacements (plus extra growth aircraft) is even in the same category.

[reubee]

For cases like this, I always say "Follow the money ...".

If the aircraft overnights in KKE or any other small regional port, Air NZ has to pay for overnight stay for 2 pilots and the cabin crew, their taxi to/from the accomodation, a dinner and a breakfast.

There is an effect on schedule as you have to allow sufficient rest from the evening arrival until the morning departure. Not to mention fatigue issue of going from an afternoon shift to a morning shift.

You then have to factor in the potential disruption cost if one of these crew calls in sick, and how you get a standby pilot/cabin crew upto KKE, and resultant flow on effect.

At the airport, the people on the ground are having to work half a turn for the early morning departure, and a late night arrival, as opposed to working full turns for a normal turnaround.

So unless you have a crew base in the town, you are having to sell a couple of extra seats to fund the overnight.

I predict the new 6am departure is a tool that will lead to the demise of the overnight as loads for 6am will be less than what they were for 7am.

The other thing is that these regional services normally make some money from the local MP as they travel to/from Wellington once a week...

[cavemanzk]

Air New Zealand is trying to cut costs where ever possible at the moment. Kicking out some more routes, getting rid of the B1900Ds, retiring a 767 and they are about to retire some of the ATR72-500s... It is clear that they are feeling the pinch that Qantas Group is putting against Air New Zealand.


I'm sure that you would be aware that NZ is replacing the 72-600 pretty much 2-1? They have Only 11x 72-500s service, and 20x 72-600s on order to replace them, along side there 9x 72-600s already in service.

Same with the 763, they are replacing 5x 763 with 12x 789s. They already have 6x 789s in service, along with another 3x this year and the remainder other the next two years. It was always planned that the 763 would leave the fleet!

Then there is the 320CEO that being replaced by 321/320NEO from next year, and they currently have 18 slots to replace 13 A320CE)