Sounds Air slashes Christchurch flights amid soaring costs

Time of India

7 days ago

Despite high bookings, Sounds Air is reducing two regional services because to "out of control" costs.
Beginning at the end of September, the airline will no longer provide flights from Blenheim to Christchurch or Christchurch to Wānaka.
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That came after it sold an aircraft and cancelled its routes from Wellington to Westport and Wellington to Taupo in December of last year.
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Andrew Crawford, managing director of Sounds Air, said Nine to Noon that the survival of all smaller airlines was in jeopardy due to rising prices, supply chain issues, and a weak New Zealand dollar.
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"We've had an additional half a million dollars in annual expenses placed on the company in the last three months, and eventually you have to say enough.
"We simply cannot accomplish it," he stated.
Rather, the company will concentrate on its primary area services, selling its five Pilatus aircraft and growing its fleet of Cessna Caravans that fly in and around the Cook Strait.
Employee shortage blamed
Ten employees from the Wānaka and Christchurch locations will lose their employment as a result of the decision.
Crawford claimed that even while they were transporting more people than before, they had run out of alternative ways to make the business work, the expenses were extremely high, and it was hard to locate and retain engineers.
One of the necessary avionic parts cost $28,000 before COVID, but the company was now spending $70,000 on it.
"To make it work, how many seats must be sold on a nine-seat aircraft? It isn't feasible.
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He admitted that consumers were already paying more for flights, stating that since COVID, tickets have increased by more than 20% and that an additional 20% increase would still not be sufficient.
Loss of over $300k due to air fare price increases
He also claimed that the company will lose about $300,000 annually as a result of the Civil Aviation Authority's recent increase in the passenger service charge.
"From where should we obtain that? We just must do that to the travelling public.
Months after being instructed to apply for the regional infrastructure fund, he said, they had contacted the government multiple times without success and were informed that the company did not fit the requirements.
Crawford stated that he was concerned about what would happen to the several area residents who utilised the flights to obtain medical care.
Relief for employees priority
According to him, the shift was somewhat of a relief because of the tremendous strain on the company, employees, and shareholders.
With the company's renewed emphasis on the Cook Strait, he expressed confidence in its future, stating that it was far more sustainable.
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"The figures that we are witnessing are simply astounding. We used to fly in and out of Nelson four times a day; on Friday, I believe we flew twelve. People are flying, there is a need, and maintaining these planes is less expensive.