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Mt Cook to retain ATR72 fleet

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Old 6th Oct 2008, 22:36
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Mt Cook to retain ATR72 fleet

Announcement to staff today regarding the future of the Mt Cook fleet:

ATR72

Air New Zealand has agreed with the owners to purchase seven of the leased ATR72 aircraft when the leases expire.

Air New Zealand operates 11 ATR aircraft on regional routes, and for the past 18 months has been evaluating fleet replacement options, given the progressive expiry of the leases.


After assessing a range of alternatives, we determined the best commercial and strategic option was to purchase the seven leased aircraft and retain the existing fleet. The agreed purchase price is at market rates (the sale price is confidential).

We expect the next generation of turbo prop aircraft to be available from 2015. Retaining our current ATR fleet until then means that we will be able to minimise our capital expenditure and transition directly into the new generation aircraft.

We considered three replacement options for the 68-seat ATR aircraft – the ATR72-600, the Bombardier Q400 and the Embraer E-170. While the alternative aircraft types that were considered had some advantages, they were not enough to offset the significant cost of capital to replace the fleet.

The other aircraft we considered were more expensive to operate and those costs would ultimately have impacted on ticket prices. By choosing the most cost-effective ATR option, we can continue to deliver the best value fares to our regional customers.

The ATR aircraft is well-liked by customers, offering comfortable and quiet travel. It is one of the quietest turbo-prop aircraft types in the world and provides a number of other environmental advantages including the best fuel efficiency of aircraft in its size class. From next year, we also plan to revitalise and refresh the ATR interiors.

The ATRs came into service in 1999 and by the time they exit to make way for the next generation of turbo-prop aircraft, will still be a fleet of relatively young aircraft.

The first aircraft will transfer to Air New Zealandownership in October next year.
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Old 6th Oct 2008, 23:46
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the accountants love the ATR72, I have heard the pilots like the ATR do the people paying like them?
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Old 7th Oct 2008, 02:20
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Seats are bloody uncomfortable, have to sit bolt upright. The whole experience is like travelling in a noisy sardine can.

Could kick my hat faster.
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Old 7th Oct 2008, 03:28
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Don't sit next to the props then duh
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Old 7th Oct 2008, 10:01
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Yep, good aircraft to travel on, prob best turbo prop I've travelled on, don't rate the Q300.

I suspect Mt Cook are waiting their time to see how the new ATR 90 seater and other types measure up. Embraer are rumoured to be looking at a new aircaft for the turbo prop market.
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Old 8th Oct 2008, 04:05
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Its interesting that Embraer are only considering a 50-60 seat model. With there now being no aircraft in the 19-40 seat range in regular production it seems there could be a rather captive market in the 2015-2020 timeframe. Even with market growth I think there will always be the case for an aircraft(s) in that seat range.
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Old 8th Oct 2008, 04:35
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...oohhhh yup.
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Old 8th Oct 2008, 04:46
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purchasing seven of them........what's happening with the other 4? Are they rolling the leases over?
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Old 8th Oct 2008, 05:00
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As SLF on both Q300's and the ATR at least weekly I must say I prefer the Q300 - find the seats & cabin more comfortable but I imagine its all personal preference.

Agreeing with the sentiment expressed earlier in the thread - I would like to know what the Mt Cook pilots think of them?

Strengths/weaknesses?

Cheers
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Old 8th Oct 2008, 09:16
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As a passenger, I much prefer the ATR to the Q300. It's heaps quieter even without electronic noise reduction, and much more comfortable I think.

I know the guys complain about lack of performance, and the fact that it's a dog in icing. Good systems though, and you can't deny it's a great commercial airplane.

Be interesting to see what this new generation of turboprop will be all about...
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Old 8th Oct 2008, 09:23
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The Q has more room than ATR as is a 56seat cabin with 50 seats in it. Agree the ATR cabin is getting pretty tired.

Do a bit down the back at times and would have to say the ATR is quietier, and with out noise cancelling in the cabin walls.

I hear that by buying the 7 they don't already own they will be looking at putting the new ATR cabins in designed for the 600 in the coming year.

Will be interesting. Would seem the company more than happy to wait and see what is being offered in the 90seat bracket in 4-5years.
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Old 8th Oct 2008, 10:19
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NVS

How many of the internal hush kits are actually working properly, if at all???

ATR with the -600 interior - and if they do the other rumoured -500 upgrades - will be quite the machine. Oooh, wonder if they'll upgrade to the 127M engine too??

It will be a very good gap filler until next move is made!
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Old 8th Oct 2008, 19:54
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The new interiors are supposed to include slim line seats, similar to those in the DHC 8-Q300, providing an extra 1-2 inches leg room.

The climb performance of the ATR certainly is poor, particularly with 68 pax in ISA+ conditions or icing. According to ATC it is marginally faster than other Air NZ Link aircraft in the cruise and descent. It can be very difficult in crosswind conditions given it's narrow undercarriage and long fuselage.

Benefits from the pilots point of view include its power management system, which means no adjustment required to the Power Levers in the climb and cruise and a quiet, spacious cockpit with modern systems. The best bit is it's average sector burn is 640kg per hour, keeps the accountants happy!
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Old 9th Oct 2008, 06:41
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ok mates, but about the payment of turboprop pilots who could enlight me ?
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Old 9th Oct 2008, 09:31
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640 kg/hr is pretty amazing. Rough figures, that's about 180% of the fuel burn of a Beech, for 350% of the passengers - assuming similar speed, that's twice as efficient. How does the Q300 compare?
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Old 9th Oct 2008, 09:53
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Fyfe put out an email a while ago on this topic (one of the few I read) The old ATR is the most efficient in the sky (seat cost) and with the Q's burning gas very similar per hour. The ATR wins all round.

1279 You will not see the 127M but you will see a new cabin with the short seats, that give the impression of more leg room.
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Old 10th Oct 2008, 08:33
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Got emailed this this arvo, sadly it makes some sense!

Air New Zealand's Mount Cook Airlines is staying with ATR but rather than purchasing new aircraft is buying the seven ATRs it currently has on operating leases.

Mount Cook general manager Mark Pitt says the airline has decided against buying new aircraft and instead is buying the seven ATR 72-500s it has on operating leases from Orix Aviation.

The airline had a formal pitch in which it considered placing an order for 13-17 ATR 72-500/600s, Bombardier Q400/Q400Xs and Embraer 170s.

Pitt says Orix "offered a really good deal" and when Mount Cook did the sums decided it made more economic sense to get these rather than purchase new aircraft.

He says the Orix aircraft are in good condition and will still be young aircraft in 2015.

Mount Cook has no need to grow its fleet in the short-term because New Zealand has just entered into a recession, says Pitt.

He also says buying the leased aircraft allows the airline "to minimise its capital expenditure" and even though there are some advantages in operating new aircraft this "was not enough to offset the significant cost of capital to replace the fleet".

According to Flight's ACAS database Mount Cook's ATRs from Orix were built in 1999 and 2000.

He says "from next year we also plan to revitalise and refresh the ATR interiors".

The aircraft will only exit the fleet when the "next generation of turboprop aircraft" come into the market, says Pitt, adding that Mount Cook considers 90-seat turboprops as suiting its future needs.

If there were 90-seat turboprops in the market today the airline would lease some, says Pitt. But there are none because these new types are still in development.

"Bombardier is a little more advanced" in development "because they are talking about stretching the Q400 whereas ATR says it is not about a stretch".

"ATR want to build a new aircraft," he adds.

Embraer, which currently makes regional jet aircraft, has said publicly it is looking at re-entering the turboprop market.

Pitt says this is something Embraer discussed with Mount Cook during the pitch.
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Old 10th Oct 2008, 22:31
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Embraer, which currently makes regional jet aircraft, has said publicly it is looking at re-entering the turboprop market.
Wow! That's pretty interesting. This always happens though. Manufacturers plan their future based on current market conditions. Nothing like a fuel crisis followed by worldwide economic gloom to force a change of tack. We've seen it all before in the late 70s - early 80s with developement of the UDF etc stopping as soon as the fuel situation improved. Perhaps they should consider the longer term, and we would have had some better engine options during the recent period? Although I'm sure they know their jobs a bit better than I do. Interesting times ahead.
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Old 12th Oct 2008, 09:49
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Oh well! The boys and girls stuck in the old french pig till 2015. Poor old pax too. The things a prick to be SLF in. Bad seats, noisy cabin, yaws all over the place. The dollar's the only thing that counts at Air NZ; definitely not the paying passenger in this case.
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Old 12th Oct 2008, 19:32
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Puma obviously has not flown in an ATR. Easily the quietest turbo prop I have paxed in and the seats are fine. If you sit down the back of any aircraft you are going to get chucked about a bit. Compared to the dash 8 300 It is superior in everyway except seat pitch. And no, I dont work for Mount Cook.
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