Marlborough Mayor ‘Disappointed' By Sounds Air Cuts
Sounds Air announced on Monday they would be selling their fleet of Pilatus PC12 aircraft and axing their Blenheim to Christchurch and Christchurch to Wānaka routes from September 28. Ten staff would be made redundant.
Sounds Air managing director Andrew Crawford said he was devastated, but the company could not contend with mounting costs and a weak New Zealand dollar.
'It will mean the loss of a number of our dedicated and skilled staff, but we are also hugely disappointed for our incredibly loyal customer base who rely on us to get around New Zealand not only for tourism and leisure purposes but also for regional access to critical healthcare and higher education, and to do business that contributes to New Zealand's regional economies,' Crawford said.
Taylor said that Marlborough Airport, a subsidiary of the Marlborough District Council, had been working with the airline to navigate through challenging times.
'It is disappointing and sad for Marlborough to lose the Blenheim to Christchurch route. This service was particularly important as it provided a vital air link for Marlborough people to get to specialist treatment in Christchurch,' Taylor said.
'There is no other option to fly direct from Blenheim to Christchurch – this is now a four-hour drive.
'That is going to put additional pressure and stress on those who are already at their most vulnerable.'
Taylor said she was frustrated that Sounds Air did not receive any government support, given the company contributed to regional connectivity, tourism, and economic growth.
'There is often talk of the regions being our country's powerhouses to be that, we need infrastructure, services, and connectivity,' Taylor said.
'If regions are to grow in the manner central Government wants, investment in this space is warranted and indeed necessary.'
Destination Marlborough general manager Tracey Green said the loss of a direct connection to Christchurch was a 'significant blow'.
'Recent challenges with Air New Zealand and ferry services have compromised our connectivity,' Green said.
'These are tough economic times for everyone and Sounds Air has been a strong strategic partner for Marlborough, connecting our region with two of our main domestic markets, Christchurch and Wellington.
'The full impact of this loss in connectivity may not be immediately clear, but it's a real shame this is happening just ahead of the summer season, when we rely on those connections the most.'
The airline's challenges came to light during Covid, and it had continued to struggle over the past five years.
Crawford said a Pilatus engine that cost US$850,000 (NZ$1.42 million) just a few months ago was now being quoted at US$1.4m (NZ$2.3m), and the passenger safety levy from the Civil Aviation Authority rose 145%.
A PC12 aircraft was recently sold to help ease the financial burden, and last year Sounds Air axed its Wellington to Taupō and Wellington to Westport routes.
LDR is local body journalism co-funded by RNZ and NZ On Air.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
2 hours ago
- NZ Herald
Agribusiness and Trade: NZ agriculture enjoying blockbuster comeback
Beef: Steering Strong Demand New Zealand's beef sector has enjoyed a standout year, underpinned by resurgent global demand and premium positioning in key export markets. Farmgate prices have surged to levels 35–45% above the five-year average, reflecting strong international appetite for sustainably produced, grass-fed meat. Tariff noise aside, the United States, in particular, has ramped up imports, with New Zealand significantly increasing its share of US beef supply. China and Japan have also shown renewed interest in lean beef cuts, creating diversified market opportunities. On-farm, producers have responded by focusing on efficiency and quality — optimising genetics, refining finishing systems, and improving pasture resilience. With export volumes rebounding to pre-Covid levels and market fundamentals remaining favourable, the beef sector is well-positioned to maintain momentum into 2026. Kiwifruit: Back to Gold Standard After two challenging seasons marked by labour constraints and weather volatility, New Zealand's kiwifruit sector has bounced back with renewed strength and clarity of purpose. Export volumes have recovered, particularly for SunGold varieties, with Zespri forecasting a record crop and export returns surging toward $4 billion — a major driver behind horticulture's overall 19% growth in primary sector exports this year. Improved orchard management, better fruit quality, and more reliable post-harvest performance have been central to this turnaround. Growers are reinvesting confidently, expanding canopy, adopting precision horticulture tools, and upgrading packhouse automation to lift productivity. We have seen and supported increased lending for orchard development finance, seasonal working capital, and long-term investment solutions aligned to land-use ambitions and succession planning. With strong offshore demand from Asia and Europe, and a renewed focus on quality over volume, the kiwifruit sector is once again leading New Zealand horticulture into a prosperous future. Currency & Costs: A Delicate Balance While global uncertainty continues to influence input costs, New Zealand's exporters are benefiting from a favourable exchange rate environment. A weaker New Zealand dollar — trading persistently below US$0.61—has bolstered export competitiveness, lifting farmgate returns across dairy, beef, and horticulture. For many producers, this currency tailwind has helped offset rising costs for key inputs like fuel, fertiliser, and imported machinery. Fertiliser costs have edged higher, with urea prices up 18% and phosphate up 12% year-on-year, driven by international supply constraints and energy prices. However, improved commodity pricing and production scale have largely preserved on-farm margins. At the same time, interest rates are showing signs of continued easing. With the Reserve Bank's gradual loosening of the Official Cash Rate expected into 2026, debt servicing pressure is beginning to ease, improving cashflow certainty for agribusinesses. For many farming operations, the current balance of strong commodity pricing and improving financial conditions represents a window of opportunity to reinvest, restructure, or build resilience ahead of future volatility. Market Sentiment: Confidence Returns to the Paddock After several years of volatility, confidence is returning across New Zealand's rural sector. Farmers and growers are feeling the uplift from stronger returns, a more stable policy environment, and improved seasonal conditions. According to the latest Tracta AgriPulse survey, overall sentiment has turned positive for the first time in two years, with producers citing better payout forecasts, manageable input costs, and stronger support from their banks and industry bodies. This renewed optimism is translating into action: farm development plans including genuine expansion are being reactivated, equipment upgrades are back on the table, and more businesses are engaging in succession conversations. There is also a growing appetite for innovation, with increased investment in digital tools and on-farm data systems. We are seeing this momentum firsthand. Demand for tailored agribusiness lending is rising, and our regional teams are busier than ever helping clients build forward-looking financial strategies. With confidence returning and commodity markets holding firm, New Zealand's rural communities are shifting from cautious survival to confident growth. At BNZ we particularly understand the importance of supporting first farm and herd buyers make the leap from employees to owners. It's an exciting time, as anyone who's gone through it themselves will know, and we see a role here for BNZ to connect new owners with seasoned farmers to help set them up for success. Risks Ahead: Navigating Headwinds in 2025–26 While the outlook for New Zealand agriculture is positive, a few key risks warrant close attention over the coming year. Climate variability remains front of mind, with recent weather patterns highlighting the growing unpredictability of rainfall and temperature across regions. Although La Nina has eased, a shift to more neutral or El Nino-like conditions could bring moisture stress to eastern areas and impact pasture and crop performance. Input cost volatility is also a watchpoint. While commodity returns are strong, global fertiliser and fuel markets remain exposed to geopolitical disruptions, and any sharp movements could squeeze margins — particularly for intensive operations. There are also geopolitical and trade uncertainties to monitor. Changes in global demand, regulatory settings in key markets like China and the US or shifts in trade access could impact export flows. Domestically, evolving expectations around climate and freshwater regulation, as well as emissions pricing, could create compliance and investment pressure, particularly for those not already aligned with industry assurance schemes. But while these risks are real, they are also manageable. Farmers are resilient and have a long and proven history of adapting to change. They are also well capitalised and increasingly supported by sophisticated tools, data, and finance. We understand that a key part of managing risks is partnering with a bank that understands farmers' goals and the strategies they have in place to achieve them. One of the things that sets BNZ's agribusiness offering apart is that our agribankers are the decision-makers. The banker sitting at your kitchen table is often the person who's able to approve your loan. This means that you get a decision on the spot - and the certainty that comes with it. Looking Ahead: A Confident Path Forward New Zealand's agricultural sector enters the next 12 months with real momentum — and a growing sense of purpose. Global demand for safe, high-quality, sustainably produced food is intensifying, and New Zealand remains well placed to deliver it. Our pasture-based systems, strong biosecurity, and trusted provenance continue to command premium positioning across key export markets. BNZ sees this shift every day. We are working with customers who are building future-focused businesses — diversifying revenue streams, embracing on-farm assurance programmes, and planning succession with confidence. With strong commodity prices, improving financial conditions, and a renewed focus on long-term sustainability, the sector has the opportunity to grow both value and resilience. The road ahead won't be without bumps — but with clear direction, deep capability, and a trusted banking partner, New Zealand agriculture is set to thrive in a world that increasingly values exactly what we do best. BNZ is an advertising sponsor of the Herald's Agribusiness and Trade report.
NZ Herald
2 hours ago
- NZ Herald
Agribusiness and Trade: NZ visit wowed China with culture and products
The arrangements, as tallied by New Zealand Trade and Enterprise, represented $871 million worth of exports, said Walsh. 'And if you include the government-to-government deals, then the value was more than $1b.' Two-way trade with China was worth nearly $40b, representing more than 20% of all New Zealand's exports in the year ending March. Walsh said most of the business leaders were already doing business in China and they wanted to deepen their relationships and create new initiatives. But there was one new entrant. Auckland-based The Beauty Lab Collective signed an agreement to resume cosmetic exports to China by way of general trade, paving the way for $200m worth of exports in that sector. Walsh said the delegation achieved its objectives and outcomes of: ● Securing and growing trade and economic opportunities; ● Showcasing our products, services and people; ● Increasing the understanding of changing market dynamics, particularly post-Covid; ● Ensuring we stay relevant in key consumer markets. She said the demographics and customer sentiment were changing — it was no longer the same China. 'The seniors want fun and to be healthy, and the kids want education. The number of seniors will increase from 200m to 400m within 20 years. 'The economic growth is shifting from the Tier 1 cities [Beijing, Shanghai, Shenzhen, Guangzhou] to the Tier 2 and 3 cities. I was told there are 79 Tier 2 and 3 cities bigger than New Zealand's population. 'Consumers are buying smarter, not more, and brand allegiance is lower and can change quickly. Digital and influencers are non-negotiable. There are 67,000 new products hitting the stores each week. 'But clean and green is still our tag,' said Walsh. 'The Chinese consumer wants more stories on provenance — the product's origin, nutrition and well-being, and science.' Walsh said the fast-food scene was changing in China. McDonald's will be increasing the number of its stores from 7000 to 10,000, KFC has more than 10,000 stores and Pizza Hut has gone the opposite. They are making their workforce available for [online] delivery and 'there's nothing strange now about having a can of Coke delivered to your home.' Walsh said on the street China is alive and bustling compared with New Zealand. 'I felt people were more refined and organised. Economic clouds come and go, and the key thing in China is the fall in customer sentiment. 'You have to work hard to win it [sentiment]. We need to bring more innovation into our products and to tell the story.' On the economic front, Walsh said China had deflationary pressure, weak consumer demand, trade friction (with United States) and a struggling property sector. There was a need to stimulate domestic consumption. New Zealand producers had opportunities given the geopolitical uncertainties, and there were new types of consumption in China — electric vehicles, culture, sport, medical and health. You have to work hard to win [sentiment].We need to bring more innovation into our products and to tell the story. Dame Therese Walsh One of the eye-opening visits by the delegation was to a NIO electric car factory. The company has invested US$3.6b, established 14 global locations and will be producing 760,000 cars this year, said Walsh. 'NIO has 10,000 patents, 11,000 research and development staff, 14.7m registered users, and has developed a two-minute charge on batteries. They have created an entire community around the brand, encouraging people to own the cars and attract other users. It's called user co-creation. 'When China decides that's what it wants to do, they are great at it,' said Walsh. 'Chinese manufacturers now dominate the world supply of electric vehicles.' Trying out an EV in the NIO showroom. Walsh's sector take-outs from the China visit were: ● Strong demand for dairy and horticulture, and growth can be harnessed by enhancing clean and green image through nutrition, science and sustainability ● Strong momentum in meat and seafood, and market access can be improved with consistent and strategic marketing ● Massive opportunity for education to focus on adding lifestyle, safety and practical training — offering the likes of food systems and technology. ● Need more incentives for tourism and a focus on high-value visitors — transit visas and Australia add-on is great but more is required per the Tourism roadmap. Walsh said it was important for New Zealand exporters to choose their markets [in China] carefully and they act fast. 'Get granular with your local market and go deep. There's massive opportunity in the Tier 2 and 3 cities, with populations up to 10m, and premium products with the clean and green tag is still our strength. 'There's also the opportunity to be more joined up and show up stronger as the team from New Zealand.' The business delegation included Fonterra, Westland Milk Products, The a2 Milk Company, Alliance Group, Silver Fern Farms, Zespri, Goodman Fielder, Air New Zealand, Auckland and Christchurch International Airports, Indevin Group (wine), Sealord, Fiordland Lobster Company, Rockit Global (apples), Scales Corp, MitoQ and Beauty Lab Collective. There were also representatives from Meat Industry Association, Deer Industry NZ, New Zealand Māori Tourism. Ngai Tahu Holdings, Plant and Food Research, Te Pūkenga Institute of Skills and Technology, Victoria University and UP Education. Tackling headwinds on the Chinese journey At the China Business Summit, three of New Zealand's leading exporters provided insights into how they adapted their strategies to ensure continued growth and success in China — in the face of economic headwinds, geopolitical uncertainty and increased global competition. Richard Allen, Fonterra's president global ingredients: China has been a wonderful market for us over more than 40 years. When we started it was all about milk powders but over the last few decades consumption has shifted from 'drinking dairy' to eating 'dairy' with the likes of cheeses and proteins. Richard Allen, president, Global Ingredients for Fonterra Dairy nutrition has become very important. 'What's been awesome is the Healthy China 2030 plan which recommends an increase in the intake of dairy nutrition from 300 grams to 500 grams a day for adults. This has the potential of increasing dairy consumption by 700,000 tonnes by 2030. The focus on healthy ageing has led to the rise of proteins. We started with quality and more and more, there's been a shift to the attributes of how the product is farmed and produced. The recent launch of the New Zealand grass-fed standard provides an interesting opportunity for us — to add value and bring greater nutrition to Chinese consumers. We operate in 500 cities across Tier 1, 2 and 3 cities and see rapid expansion. The food service channel has been a phenomenal success, generating $4 billion revenue last year and doubling since 2017. An important focus is targeting dairy upgrades, from non-dairy creams and other alternatives, and talking about the nutritional, taste and functionality benefits of dairy. This has driven our growth. We have invested significantly in local innovation capability with six application centres and 50 chefs working closely with customers in the different regions, applying the best of New Zealand dairy to local tastes. The role of innovation has been critical in being able to move with the consumption trends. Jason Te Brake, Zespri chief executive: Zespri's purpose is to help people and communities thrive from the goodness of kiwifruit. We have the ambition of being the world's healthiest food brand. Every piece of kiwifruit is a healthy eating occasion. Jason Te Brake, Zespri chief executive. Last year we provided 1.5b healthy eating occasions in China. We will increase that by 200 million pieces of fruit this year, and look at doubling the business over 10 years. We have three building blocks to our strategy: 1. Maintaining strong chain supply partnerships and making sure our partners understand our fruit and our consumers. We also want to provide the best service to them. We have 100 staff in China but every day we have 1000 people working for Zespri supplying the natural nutrition to consumers. 2. Investing heavily in branding and making sure we differentiate our brand by focusing on nutrition. We want our customers to understand that proposition and to enjoy the goodness of kiwifruit every single day. 3. Help raise an awareness of malnutrition and be part of the Chinese social fabric. We have connected with 1000 schools and provided information about having fruit in a balanced diet. There may be talk about uncertainty and complexity, but we have a great deal of confidence about the opportunities ahead of us in China. Dan Boulton, Silver Fern Farms chief executive: Time on the ground in China is important and the Prime Minister's delegation was the third time I've been up there in a matter of months. People-to-people connections, knowing the consumer channels and where to show up, and understanding that China is 'markets within a market' — that's what Silver Fern is all about. Dan Boulton, chief executive, Silver Fern Farms. You have to go narrow and deep in China rather than wide. We have been in the market for 30 years and tipped over $1b in revenue a few years ago. That's 25-30% of Silver Fern's turnover. China is the best-paying market for many of the items that come from our animals. There's an opportunity for growth in quick-service restaurants and New Zealand product is at the heart of many of those menus. China is one of the largest protein consumers and red meat consumption is growing substantially. You have to be sophisticated and differentiate your product — the volume we put in for a year, South America does it in a week. Our grass-fed standard and telling our story is essential — red meat is a cluttered sector. We have developed strong partners — before we used to deal with traders — and we are getting greater transparency in pricing and margin. There's been a real shift in how we sell to the market. We have a market for 150m consumers who cure our meat and consider its physical sustainable attributes. We have increased foodservice and gone deeper in the Tier 2 and 3 cities. It is in the central, western and northern parts of China where for us the red meat is being consumed. We have displays of chilled beef three to four metres long, and we are getting the halo benefit by being involved with five high-end national retail chains.
NZ Herald
15 hours ago
- NZ Herald
Swann reflects on Gisborne's Rugby Park redevelopment, surge in player numbers
Swann said the success of locally born-and-bred Black Ferns and Black Ferns Sevens players such as Renee Holmes, Charmaine McMenamin, Kaipo Olsen-Baker and Kelsey Teneti also promoted women's rugby and showed there was a pathway for talented players. He said Horowhenua-Kāpiti was the only one of the other 25 unions to match Poverty Bay's increased player numbers, which came at a time of economic challenges and growing competition from other codes. The Covid-19 era was another testing time, Swann said. 'We were still having matches. Rugby was operating in a bubble. We worked so hard. It was really, really hard to keep going, but we did. 'We were wiping down posts and pads. We were wiping everything. We were breaking people down into groups, but we got there.' Gisborne's Kelsey Teneti in action for New Zealand against France at the Singapore 7s earlier this year. The success of Teneti and other Gisborne-connected female players is a factor in the increase in female player numbers in Tairāwhiti, says Hayden Swann in reflecting on his tenure as Poverty Bay Rugby Football Union chairman. Photo / Jayne Russell, Photosport The annual report said the Rugby Park redevelopment had been impacted significantly by the Covid-19 pandemic, Cyclone Gabrielle and inflation. But the union decided to develop 'our ageing asset' and the $12.5 million grandstand redevelopment, originally costed at $8m, had been fully funded by the Ministry of Business, Innovation and Employment/ Kanoa Regional Economic Development and Investment Unit and Trust Tairāwhiti. Swann told the Herald the union was showing huge profits for the past two years of around $2.5 million, 'which of course' related to capital project funding for the grandstand redevelopment which had not yet been spent. 'It is not a real profit.' But the union had made an operating profit in 2024 of $45,000. Swann attributed that to an increase in commercial revenue and New Zealand Rugby (NZR) funding being boosted because of increased player registrations. The union retained strong relationships with local sponsors and funders and took a conservative approach to spending, resulting in more revenue and less spending in 2024, he said. The union was now endeavouring to 'put money away'. Swann said interest earned from the union's $500,000 share of the Silverlake equity payout to NZR would be ring-fenced for maintaining assets and would not be spent on staffing or operations. The union wanted to avoid the example of other sporting infrastructure in the district ageing to a point where it was not fit-for-purpose. The grandstand was due for completion next June and would result in a significant uplift in the equity of the union. Swann said the union had assets of only $321,000 back in 2018 and recorded a deficit of $129,000. Swann, who has stepped aside after serving as an independent member of the PBRFU board for the maximum period of three three-year terms (seven years as chairman), said his nine years had been the most rewarding and enjoyable time of any organisation he had served on. 'Being chairman is a privileged position because you are working for New Zealand Rugby,' the Makaraka School principal said. 'There are 25 other provincial union chairmen [and] you learn from their knowledge, experience and capabilities. 'Rugby is such a neat network and such a giving network.' The new union chairman is Trust Tairāwhiti general manager economic development Hayden Green.
