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
Otago Daily Times
7 hours ago
- Otago Daily Times
'Brought to its knees': Why NZ can't shake the recession
By Susan Edmunds of RNZ New Zealanders were told to "survive til '25" for the economy to pick up - but now one major bank economist says it's probably going to be 2026 before any real improvement happens. Kiwibank's latest Annual Regional Note shows small improvements across the country, but weak scores overall. The national average score has lifted from three out of 10 to four. Southland and Otago top the table at five. Otago was boosted by a recovery in international tourism and improvement in employment. Northland, Taranaki and Gisborne went backwards. Taranaki had the biggest fall in employment of anywhere in the country, at 8 percent. Northland reported a double-digit drop in building consents. Retail sales remain below their average levels over the past decade in most regions, as weak household confidence weighs on consumption. Kiwibank said Wellington recorded the steepest annual decline at a -3.3 percent, while regions like Waikato, Northland and the Bay of Plenty experienced a slight improvement on last year. 'Wellington is just more pessimistic' Wellington's score improved from a two out of 10 to a three out of 10 while Auckland lifted from a three to four. "Wellington is just more pessimistic," Kiwibank chief economist Jarrod Kerr said. "It's gone through a lot in recent years. You can see it in their activity, you can see it in the housing market. You can see it in the economy, the city has been brought to its knees and it's been struggling to shake the pessimistic vibe." He said both Auckland and Wellington were well below average. "If you look across the regions, some of them have gone backwards and others are improving but it's not good. "When you look at the South Island things are better, people are definitely more optimistic in the South Island but even then the top scoring regions get a five out of 10." He said the report helped solidify the view that rate cuts to date had not been enough to turn around the economy. "We're really crawling out of this recession rather than regaining our footing and looking to grow from here. We're still struggling across the entire country." He said Kiwibank customers last year had talked about needing to hold on until this year. "We are halfway through the year and, yes, things are better but only by a little bit." Worse off than Australia New Zealand was worse off than Australia, he said. "Their economy is much stronger than ours but in their terms it's soft… where everything washes out is the labour market and, you know, the unemployment rate tells you a lot. Our unemployment rate is over 5 percent and theirs is pretty close to 4 percent." Part of the reason was the more aggressive interest rate hikes from the Reserve Bank, he said. "We were much more aggressive in our rate hikes than in Australia. We were much more aggressive on inflation than across the Tasman. "I think both the RBA and RBNZ made mistakes as I think every central bank did through the Covid period, we overstimulated in hindsight but at the time it was the right thing to do. And then we had to deal with the inflation problem." He said the Reserve Bank had kept the official cash rate at 5.5 percent for too long as it worked to tackle inflation. "We had a really bad recession last year, which the Reserve Bank openly orchestrated, they said 'look, we need a recession to get inflation back down'. The Australians didn't orchestrate a recession, they didn't slam the economy into the floor." Kerr said recovery was still coming but he had hoped it would have started more obviously by now. "We're hoping it takes off in the second half of this year as more and more people refix on to lower rates. Then it's more of a 2026 story now."
Scoop
a day ago
- Scoop
Interim Treatment Solution Found For Havelock Water Supply
Marlborough District Council will install a temporary ultraviolet (UV) treatment plant in Havelock, and once installed, lift the boil water advisory recently issued for the town. Mayor Nadine Taylor said it was great news. 'I'm very pleased to say that we now have a solution that means we'll be able to lift the boil water advisory in two months' time, rather than in three years' time.' 'It has been a difficult couple of weeks for the people of Havelock, particularly for food, hospitality and accommodation businesses. They have my sympathy and I thank them for their patience and understanding while we worked through this.' 'I'd like to acknowledge Council's Infrastructure and Services engineers for their focus on finding a temporary solution to see us through until the new water treatment plant is built.' Richard Coningham, Group Manager Infrastructure and Services, said: 'We aim to install the temporary plant within eight weeks, assuming good weather and no other issues. It requires earthworks to build a platform to support a large container housing the UV equipment, which will sit next to our existing chlorine treatment plant.' 'We also have to upgrade the power supply and Marlborough Lines has confirmed it has the equipment in stock and should be able to work within our timeframe.' 'Costs are expected to be in the range of $750K, some of which will be recoverable through the reuse of equipment for the new permanent plant to be opened in 2028.' The budget set aside in Council's Long Term Plan for Havelock's permanent plant is $14M. 'The Water Services Authority Taumata Arowai has advised that Council needs to draft a new Water Safety Plan to show how we are managing risk using the temporary treatment plant. We expect this to be completed at the same time as the plant installation, over the next eight weeks,' Mr Coningham said. 'If all goes well, we'll be able to lift the boil water advisory by mid-September. In the meantime people should continue to boil water used for drinking, cooking, brushing teeth and washing food. Advice on this is available on the Council website.'
RNZ News
a day ago
- RNZ News
Ngāti Porou CEO George Reedy resigns after four years
Te Runanganui o Ngāti Porou has announced the resignation of its chief executive officer George Reedy. Photo: LDR/Paul Rickard Te Rūnanganui o Ngāti Porou chief executive George Reedy has resigned after years of leading the organisation. His resignation will take effect on August 1, Te Rūnanganui o Ngāti Porou (Tronp) confirmed. Reedy served as chief executive across four of the group's entities: Tronp, Ngāti Porou Oranga and Toitū Ngāti Porou. Mayor Rehette Stoltz said she had the utmost respect for Reedy and his departure from the role would be a significant loss for the region. Council chief executive Nedine Thatcher-Swann said it had been a privilege to work alongside Reedy, and on behalf of council staff she wished him "all the very best in whatever comes next". "It is not often you cross paths with someone whose leadership blends mana, humility and sharp strategic thinking, and that's the kind of leader George Reedy is." Reedy was instrumental in forging a strong relationship between the Rūnanganui and council, she said. His leadership was evident through joint efforts in regional economic development planning and civil defence emergency management, "spaces where trust and collaboration matter most", Thatcher Swann said. Reedy's vision and drive led to the creation of over 150 new jobs and a significant increase in their contracted income, Ngati Porou Tiamana (chairman) Patrick Tangaere said in a statement. "It is with both gratitude and regret that I announce the resignation." Under Reedy's leadership, the iwi navigated "some of the most challenging and turbulent periods", including the Covid-19 pandemic and cyclones Hale and Gabrielle, he said. "George played a pivotal role in the establishment of Ngāti Porou Oranga and the expansion of health, housing and social services for our whānau and communities of Te Tairāwhiti." Tangaere also acknowledged Reedy's role in strengthening Ngāti Porou's strategic relationships with local and national iwi, across government and with other key stakeholders. Reedy left Napier to come home and take up the position, he said. "It was a powerful expression of his service to his iwi, reaffirming his dedication to the people and whenua of Te Tairāwhiti," Tangaere said. The statement did not give a reason for Reedy's resignation. Reedy has been approached for comment. East Coast National MP Dana Kirkpatrick said it had been a privilege to work alongside Reedy, having known him for a few years. They had been delighted with the work he had overseen at the Puhi Kai Iti Community Health Centre, and recently with creating its urgent and after-hours care, which was significant for the people of Ngāti Porou and the region, she said. "He has served the community well, and it has been an honour to work with him." LDR is local body journalism co-funded by RNZ and NZ On Air.
