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Merged: Origin Pacific ceases flying

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Old 10th Aug 2006, 09:07
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Merged: Origin Pacific ceases flying

Origin Pacific regrets to advise that its scheduled passenger service operation has been suspended.



Arrangements have been made for passengers with forward bookings on Origin Pacific to travel on Air New Zealand.

Passengers are advised to see Air New Zealand Check-in staff at their airport of departure or call 0800 737 000.



Origin Pacific’s airfreight operation continues and airfreight customers that have any questions or concerns should contact Origin Pacific’s airfreight manager.



We regret that Origin Pacific has had to terminate the jobs of all passenger service staff and as a result we are unable to take phone calls or provide other assistance.



Media releases as they become available, will be posted immediately to this website.



Again, our sincere apologies
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Old 10th Aug 2006, 09:38
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Its a damn shame heard just before half 9 pm. hopefully you all get jobs soon

Good luck to all
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Old 10th Aug 2006, 10:09
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Thumbs down

God bless the workers and shareholders, the only time when their interests coincide... and at the risk of raising the ire of that moron who really hates it when people cut and paste news stories...


Origin Pacific suspends operations

9.00pm Thursday August 10, 2006


Nelson-based regional airline Origin Pacific has suspended passenger operations following a meeting between airline staff and management tonight.

The airline made the decision because of major financial troubles.

Origin Pacific managing director Robert Inglis tonight told the meeting in Nelson that the hoped-for capital injection had not been concluded in time to avoid suspending the passenger service.

Mr Inglis said he was making the announcement with enormous regret, particularly for the 260 staff, full and part-time, who work for Origin Pacific.

A separate freight carrying business will continue.

"I am truly sorry that some of our customers will have their travel plans disrupted by our announcement and regret that this could not have been avoided", Mr Inglis said at the meeting.

Mr Inglis said arrangements had been made with Air New Zealand to carry Origin Pacific passengers left stranded by tonight’s announcement. It was suggested Origin Pacific passengers booked on flights in coming days contact Air New Zealand for assistance.

However, in a separate statement released tonight Air New Zealand denied an agreement had been made.

"Origin Pacific's advice is premature as Origin is yet to agree arrangements with Air New Zealand for carriage of its customers", the statement said.

"Air New Zealand’s current terms of trade with Origin are payment in advance. Once receiving confirmation of continuation of this arrangement, Air New Zealand will be in a position to reaccommodate Origin’s customers on our services."

In the statement Air New Zealand’s Chief Financial Officer Rob McDonald said Air New Zealand would encourage Origin's passenger staff who are faced with unemployment, but are keen to continue their aviation career, to contact the airline, although would not make any guarantees of employment.

- NZPA, NZHERALD STAFF
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Old 10th Aug 2006, 12:08
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Sorry to hear the news. Having been there some 5 yrs ago, can feel for those involved.
Find it disgusting that ANZ can winge so hard about so called unfair practices by other international airlines, particularly on the tasman and EK. Then can use its size to sustain fares at a below cost level, so driving the small man out.
When ANZ found itself in the same position, it ran off to the taxpayer and was bailed out, there is little justice.
The NZ travelling public now find themselves faced with a virtual monopoly on the regional routes, stand by for the prices rises (Of course justified by $77 a barrel) and cuts in service.
Good luck to those affected, there is life after the event.
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Old 10th Aug 2006, 12:52
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Yeah.... thats why Air NZ is stopping SIN services..........IF you work for EK, your a bit cheeky talking about predatory practices in this part of the world..................

Never the less, condolence's to those out of work.
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Old 10th Aug 2006, 15:35
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Dark clouds often have silver linings

Although it will feel dire at the moment, I hope OP pilots will see this as an opportunity. Job options are increasing now especially if you are prepared to travel. Anyone with previous jet time should consider the Gulf; Emirates, Etihad, Qatar and Gulfair are hiring plus other low cost operators (mainly 320). There are many jobs available in the Uk for those able to work there; Easyjet and Ryanair the easiest to get in to even with turbo prop time.
Any Ansett NZ guys needing assistance you have many options in EK; PM me I can give you contact details if needed.
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Old 10th Aug 2006, 18:44
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Single seat you show a distinct lack of knowledge with comments like that.
Reality
  • OP's fares were on average 30% lower than NZ fares
  • There will be no price rises or service cuts.
For people to blame anyone but Inglis in this instance is a moron.
He was given every chance, a previous bailout wrote off millions in debt and yet he still continued to run it into the ground.
The issues were never the problem of a competitor nor the troops on the ground it was from the top where the problem was and because of one person 260 are without jobs, hundreds of passengers will be disrupted and creditors will once again be the losers.
He has strung it out to the last possible moment, leaving it too late and in too much debt. He should have stood aside long ago and let someone who knew what they were doing take over and try to salvage what the could. Hopefully a fair number of staff will get other jobs soon with an employer who knows how to run a business.
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Old 10th Aug 2006, 20:21
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youidiots....so you must have been the "fly on the wall" when this was all going down????interesting that you know so much about this sagarso,and throwing a few spears will hopefully make it all better.......offering your expertise in this field would have obviously saved the whole company???

I think youll find it goes a little deeper than your "THEORY"...and that managenent,(plural)...(more than one)will surley have lead to the demise of its ability to stay liquid,and that the combination of the current economics has played a huge part.

I,m with vbrules,condolences to all involved,and I offer any help that I can give for those that ask,all you have to do is PM me and Ill find out any info you require.

The "blame game" gets boring to read....sad news indeed....


For those of you that may qualify,go to the "Rest of the World" PPRune,there is a North America forum.....read the" (another)aussie thinking of moving"....there is a post by "kenny" and he gives a very good,accurate,overview of some of the regionals here in the states....may be worth the read

Last edited by pakeha-boy; 10th Aug 2006 at 21:27.
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Old 10th Aug 2006, 20:45
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Idiot, Your a pole-smoker.

Sorry to all you guys at Origin. I spent 5 years at Origin, from when there was 4 j31's up to the arrival (and departure) of the ATR's. While it was'nt the easiest place to work at times the people couldnt have been better. The thought of all those good, hard working people with families to support out on the street makes me feel pretty empty. Hope there is bigger and better things on the horizon for you all. good luck

NSN
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Old 10th Aug 2006, 23:31
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Does anybody truly beleive that Air New Zealand are out of financial trouble?

Pakeha Boy...your well spring comments are getting very tiresome. Enjoy your "OE", but stop telling other pilots how to suck eggs.
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Old 11th Aug 2006, 00:20
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petey....below me!
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Old 11th Aug 2006, 00:55
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Woe is me I’m so poor done by....
Man I am so sick of Inglis blaming everybody else for his problems, has he forgotten that Air NZ brought his company off him years back for many millions of dollars?
I'm sure the shareholders of Air NZ would want the company that they have invested in to be competitive with Origin, I’m quite sure that if Air NZ had gone into bankruptcy in 2001 then Inglis would have shown no quarter with Air NZ’s stranded passengers. Full price please sir…
I feel sorry for the staff that showed loyalty to this company, I hope that they find work with other companies soon.
As for the axis of evil that was suggested were ‘management’, I hope the fleas of one thousand camels infest your underpants. I have never worked for such horrible people in all my life.
The aviation game is a harsh one and one in which Inglis knows the rules and the penalties. Air NZ is finding difficulties on lots of its routes, capacity dumping on the Tasman, and competitors that seem to have their own oil well to fill their aircraft from, everybody’s got problems… To blame Air NZ for Origins woes seems a little pointless, if it really was all their fault I’m sure Inglis will take them to court and win, good luck.
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Old 11th Aug 2006, 01:24
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I have to agree that this is an Inglis screw-up from start to finish. He has a planet-sized ego that precludes him listening to anyone who might know more than he does... one of the reasons that so many promising senior managers have come and gone over the years. Also the reason, I understand, that Pero left - Inglis wouldn't allow him any meaningful input at board level, nor was he allowed to fulfil his marketing role. I wonder if he lost his money... guess so.

It is bad enough that he has now made so many people unemployed, but worse still, he continues to blame Air NZ for his woes. After all the money he was given by creditors, plus the investment from others, he should have been able to continue for some time, if the business was even close to being viable.

As has been said elsewhere - too much investment in uneccessary buildings, the wrong aircraft, poor management throughout.

The only reason to mention the above is that it makes me very angry that so many hard workers have now lost their jobs. Not too bad for the ground staff, but the flight crews will not find other work very easily.
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Old 11th Aug 2006, 05:07
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MOR and Split Flap...well said. Staff lives get thrown into turmoil not just because the 600 lb gorilla known as Air NZ makes life difficult (that's called competition), but as a result of possible ego driven mistakes (c'mon, who amongst this forum has not made that sort of mistake) and the savage airline industry environment.

Some of the issues you can legislate for, some you can't. The rules can, and do, get skewed in favour of one or a number of parties. Who was it said ..."first rule...there are no rules"? Must have been talking about the airline industry. If you want to go up against any gorilla, expect a smack or three along the way, and don't moan about it.

As an ex-OP and Air NZ (frequent) traveller, the latter gets my hard earned dollar more often (and now exclusively), as a result of a more reliable service in the first instance. Four of the last five OP flights that I have booked in the last five weeks have either been re-scheduled or cancelled.

Example..."Sorry ANZAC, that 07.00 flight you had booked has been cancelled and we have you on another service at 10.00". Sorry OP, I need to be on site at 09.30.

Example 2..."Sorry ANZAC, that 11.45 flight to CHC has been cancelled, you can choose between the 10.30 flight, or the 16.30 flight". OK, I'll take the 10.30 flight...which departed at 11.50.

Example 3..."Boarding will be at 19.00" OK, but it's now 19.45 and there's still no aircraft at the gate.

Example 4..."sorry, we do not have any flights direct to CHC ex-WLG". Oh, that's OK, send me through Nelson then, why not, it's only time and money.

Whoops, that's a passenger talking, and in the end, passengers will play a large part in determining whether or not what you have will allow you to survive, or not.
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Old 11th Aug 2006, 05:43
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Excellent post ANZAC - not that most on this forum want to deal with the truth. In the end its all about the passenger and what they need. Reality is most dont need to sit around airports waisting time and to many this offsets paying the higher price to get there on time. The Gorilla at the end of the day provides a good service.
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Old 11th Aug 2006, 08:56
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I hate to cut & paste too but it's faster.......

Statement From Air New Zealand Chief Executive Officer Rob Fyfe

Air New Zealand has been in discussions with Origin Pacific from time-to-time in recent weeks on several proposals the regional carrier has put to us to try to assist it to address recent financial difficulties.

Air New Zealand has been unable to accept those proposals for a range of reasons, including our belief that without Commerce Commission authorisation they would have been anti-competitive and unlawful, or they were not in the best interests of Origin’s customers.

There was never any arrangement agreed between Origin and Air New Zealand. Origin founder Robert Inglis media statement earlier today claiming Air New Zealand has “gone back on discussions” is a deliberate attempt to mislead the public and yet again pass the buck for the predicament of his business.

The quoted statement from Air New Zealand executive Norm Thompson was rejecting a proposal that would have seen Origin pocket some of its customers’ money while Air New Zealand provided the services.

In our view the actions of Mr Inglis, who has been vocally supported by Nelson MP Nick Smith, have not been in the best interests of Origin Pacific’s customers.

Air New Zealand yesterday sought via a media release to reassure Origin’s customers that we would carry them if we could come to a satisfactory arrangement with the regional carrier.

We understand from Origin that it has collected around $1.5 million from 14,000 customers who have not yet travelled on the tickets they have purchased.

Air New Zealand has been trying to establish from Origin what has happened to those funds and why it will not transfer them to us so that we can carry the passengers it has abandoned in such a reckless and cavalier fashion.

I am deeply concerned that Origin chose to put a statement on its website at 8pm yesterday advising its customers arrangements had been made for their carriage with Air New Zealand with the full knowledge this was false and misleading.

Mr Inglis contacted Air New Zealand less than half an hour after the statement had been published on Origin’s website asking how we could help his customers.

Then on Radio New Zealand this morning Mr Inglis again highlighted the fact that he had misled his customers when he made the following statement:

“Yesterday afternoon Air New Zealand issued a press statement saying that they would carry Origin passengers dependent on the deal that could be arranged and we attempted to negotiate with Air New Zealand last night and that has not been successful at this stage.”

The actions of Mr Inglis have been reckless and we are at a loss to understand why a supposedly solvent company has not confirmed to its customers their position on funds allegedly held in trust. That would at least enable them to make informed decisions on other arrangements.

Mr Inglis comments today that Origin will “do its best to honour” its passengers’ fares and that “this may take some time” are cause for concern.

Nor will Mr Inglis clarify whether Origin is in a position to pay its customers’ funds to us so that we can fulfil the travel obligations Origin committed to.

In our discussions with Mr Inglis today, we have been left with the clear impression that he expects Air New Zealand to carry his customers at a significant discount so that his firm can pocket some of the customers’ money.

Nevertheless, Air New Zealand remains committed to supporting the nation’s travellers and the reputation of New Zealand aviation and has made a series of arrangements to assist Origin’s customers with special fares. We have also addressed compassionate circumstances where necessary but remain appalled at Origin’s disregard for both their obligations to their customers and the availability of the funds they have paid.



I understand the other Airlines are banding together to sort out some jobs. Well done.
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Old 11th Aug 2006, 09:09
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Anyone want to volunteer to hold the box while Mr. Inglis clambers down off his high horse? Of course, the gorilla (aka Air NZ) could be seen as having an axe to grind...but there are some very good points made in the statement.
As for Mr. Smith (or is that Dr. Smith?), refreshing to see a politician becoming so interested/concerned/available for comment at such an early stage in proceedings...or is that just a bandwagon I see before me?
Chances are, the good Dr. would not know the commercial machinations of the airline industry if they deposited a bite mark on his butt.
Cynic? Yep, that will do for the moment.
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Old 11th Aug 2006, 10:32
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OK, lets assume that Air NZ is not guilty of predatory pricing or other illegal activities and that Origin Pacific went down the tube due to a combination of bad management and unavoidable externalities (QF's cancellation of their code-share agreement, leaving QO with significant debt commitments based on an assumed business case.) Can happen. It's called capitalism and it works pretty well most of the time.
The scenario as from now?
NZ won't put their prices up and will still make chunks of money. And no-one will really notice.
How?
NZ currently has a priceband structure of $86/$110/$170 NSN-WLG one-way.
Assuming that the market is not overly price-sensitive (and why should it be? Look at the options - via Picton and Interisland...?), expect the availability of $86 seats to drop dramatically.
Why?
Because NZ was
a) either cross-subsidising its non-trunk (competitive) services on the assumption that QO was circling the drain or
b) working at acceptable margins
both with decent loadfactors.
QO's demise takes 192 seats out of the Monday WLG-NSN market, reducing the total offering by about a third. (Check the maths, I've made some assumptions on configurations, but I think I'm pretty close - QO with 6 J41 ops @ 32 seats, NZ with 6 SF3 @ 33 and 4 DH3 @ 48)
Significantly greater demand for NZ's services, NZ closes the cheaper buckets, trickle-feeds more capacity and keeps things on simmer.
(I think someone at NZ's actually asleep at the switch - they haven't done this yet..)

Last edited by RevMan2; 11th Aug 2006 at 15:22.
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Old 11th Aug 2006, 10:57
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The big question is......Where has all the the passengers money gone from th bookings????
This is supposed to be set aside until travel has been completed. If this money was there I am sure the creditors would have handed it over to NZ so they could happily carry the out of pocket passengers.
This sounds to me that it may be another KIWI, you will all remember that thieving Wilson that ripped everyone off.....
Yes he was a spin doctor as well, it was not his fault, it was Air NZ's.
It is all to convenient for these types to pass the blame rather than admitting they cocked up.
If RI was any kind of man he would have put his hand up when the 32's got repo'ed and said "I am in the ****". But know lets keep trading so I can blow any money I may have left so the staff and creditors can get even less.
What an complete ass he is.
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Old 11th Aug 2006, 12:44
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Funny, isn't it. So many are quick to assume that Air NZ is the villain in this, but reading the statement above from Mr Fyfe, it would appear that the reverse is true.

As he says, payment for tickets issued for future travel is supposed to be held in a trust account, and that money is theoretically untouchable until travel is completed. I imagine the CAA will be interested in that issue.

It all sounds pretty slimy to me, but then this is Inglis we are talking about, so nobody should be surprised.
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