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Scoop
29-05-2025
- Business
- Scoop
The Headwinds Facing Regional Airlines
Regional airlines say they're one bird strike away from deep trouble, and cries for support are falling on deaf ears Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. 'Passenger numbers are through the roof,' says Sounds Air boss Andrew Crawford. But it has had to 'kill off' Taupō and Westport routes and sell an aircraft, and the company is still losing money. 'I wouldn't know one airline that isn't,' he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. 'This is a critical issue for New Zealand,' says Crawford. 'Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare.' Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland – Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. 'You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike.' He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. 'He's had some real challenges in his life and this seems to be trumping a lot of them at the moment,' he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. 'For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears,' Crawford says. His airline is 'hanging off shareholders' mortgages' but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington – Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. 'They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company,' he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a 'possibility'. 'There's not too many second tier airlines in New Zealand,' he says. Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. 'To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back,' he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. 'We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. 'The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector.'
Scoop
29-05-2025
- Business
- Scoop
The Headwinds Facing Regional Airlines
Regional airlines say they're one bird strike away from deep trouble, and cries for support are falling on deaf ears Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. "Passenger numbers are through the roof," says Sounds Air boss Andrew Crawford. But it has had to "kill off" Taupō and Westport routes and sell an aircraft, and the company is still losing money. "I wouldn't know one airline that isn't," he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. "This is a critical issue for New Zealand," says Crawford. "Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare." Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland - Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. "You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike." He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. "He's had some real challenges in his life and this seems to be trumping a lot of them at the moment," he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. "For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears," Crawford says. His airline is "hanging off shareholders' mortgages" but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington - Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. "They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company," he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a "possibility". "There's not too many second tier airlines in New Zealand," he says. Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. "To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back," he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. "We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. "The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector." Check out how to listen to and follow The Detail here.
Newsroom
28-05-2025
- Business
- Newsroom
The headwinds facing regional airlines
Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. 'Passenger numbers are through the roof,' says Sounds Air boss Andrew Crawford. But it has had to 'kill off' Taupō and Westport routes and sell an aircraft, and the company is still losing money. 'I wouldn't know one airline that isn't,' he says, citing fuel, labour and maintenance as the three big costs of flying. Andrew Crawford, Sounds Air managing director. Photo: Sounds Air Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. 'This is a critical issue for New Zealand,' says Crawford. 'Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare.' Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island, and its Auckland-Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high-risk business and conditions are the toughest they've been in his airline's 41-year history. 'You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike.' He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. 'He's had some real challenges in his life and this seems to be trumping a lot of them at the moment,' he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. 'For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears,' Crawford says. His airline is 'hanging off shareholders' mortgages' but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington-Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. 'They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company,' he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a 'possibility'. 'There's not too many second-tier airlines in New Zealand,' he says. Duane Emeny, chief operating officer of Air Chathams. Photo: Sharon Brettkelly Air Chathams' Duane Emeny says the most important step for the Government would be to give airlines access to low or no-interest government concessionary loans. 'To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back,' he says. But there's no definite response from the Government. In an email to The Detail the associate transport minister James Meager says the Government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. 'We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. 'The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.
Scoop
22-05-2025
- Science
- Scoop
Kaikōura's Bid For World Heritage Status Gathers Momentum
Article – David Hill – Local Democracy Reporter Te Korowai o Te Tai o Marokura is looking to marine research to boost Kaikura's bid for world heritage status. Marine research could provide a catalyst for achieving world heritage status for Kaikōura, community advocates say. Te Korowai o Te Tai o Marokura (Kaikōura's marine guardians) first mooted the idea of making a bid for Unesco's (United Nations Educational, Scientific and Cultural Organisation) World Heritage list 20 years ago. Now Te Korowai secretary Gina Solomon and committee member Mel Skinner want to organise a research hui to find out what is happening and where the gaps are. The Kaikōura District Council has identified the potential for marine research to provide economic benefits for the town. A business case for the future development of South Bay Harbour was completed in July 2022, thanks to funding from the Government's Provincial Growth Fund. It identified Kaikōura as having the potential to become an international hub for marine research and education – if it could get the funding. Chief executive Will Doughty has said the council is keen to attract marine researchers from New Zealand and overseas, but it lacks the funding to support it. He said the council is keen to partner with Government and other agencies to support marine education and research. Mrs Skinner said achieving world heritage status would likely make Kaikōura more attractive as a research destination, and gathering momentum will help to get the bid across the line, she said. ''We need to be able understand what is going on here and to create more of a research focus. ''We don't necessarily need the bricks and mortar now, but with the aim of eventually having the facilities in the future. Ms Solomon said Kaikōura has long been considered ''the world's seabird capital'' by scientists. But locals often had little understanding about their local bird life, she said. ''Often we think of seagulls as a nuisance, but they are an important part of the eco-system. ''Have some targeted research would help to improve our understanding of what we have.'' The University of Canterbury used to have a research facility in Kaikōura, which it was damaged in the 7.8 magnitude earthquake in 2016. World heritage sites are landmark locations protected by an international treaty administered by Unesco. Kaikōura's world heritage journey began in 2004 when it was first included in a tentative global list of 304 sites. Te Korowai was established by Te Rūnanga o Kaikōura in 2005 and successfully lobbied both local and central government for marine protections. The Kaikōura Marine Strategy was published in 2012 and the Kaikōura (Te Tai o Marokura) Marine Management Act passed into law two years later. The legislation established the Kaikōura Marine Area, which comprises the 10,416 hectare Hikurangi marine reserve, a 4686ha whale sanctuary, five customary management areas, a fur seal sanctuary and restricted fishing areas. The Kaikōura district's international dark sky sanctuary status, obtained in September, also boosted to the district's case. LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
22-05-2025
- General
- Scoop
Kaikōura's Bid For World Heritage Status Gathers Momentum
Marine research could provide a catalyst for achieving world heritage status for Kaikōura, community advocates say. Te Korowai o Te Tai o Marokura (Kaikōura's marine guardians) first mooted the idea of making a bid for Unesco's (United Nations Educational, Scientific and Cultural Organisation) World Heritage list 20 years ago. Now Te Korowai secretary Gina Solomon and committee member Mel Skinner want to organise a research hui to find out what is happening and where the gaps are. The Kaikōura District Council has identified the potential for marine research to provide economic benefits for the town. A business case for the future development of South Bay Harbour was completed in July 2022, thanks to funding from the Government's Provincial Growth Fund. It identified Kaikōura as having the potential to become an international hub for marine research and education - if it could get the funding. Chief executive Will Doughty has said the council is keen to attract marine researchers from New Zealand and overseas, but it lacks the funding to support it. He said the council is keen to partner with Government and other agencies to support marine education and research. Mrs Skinner said achieving world heritage status would likely make Kaikōura more attractive as a research destination, and gathering momentum will help to get the bid across the line, she said. ''We need to be able understand what is going on here and to create more of a research focus. ''We don't necessarily need the bricks and mortar now, but with the aim of eventually having the facilities in the future. Ms Solomon said Kaikōura has long been considered ''the world's seabird capital'' by scientists. But locals often had little understanding about their local bird life, she said. ''Often we think of seagulls as a nuisance, but they are an important part of the eco-system. ''Have some targeted research would help to improve our understanding of what we have.'' The University of Canterbury used to have a research facility in Kaikōura, which it was damaged in the 7.8 magnitude earthquake in 2016. World heritage sites are landmark locations protected by an international treaty administered by Unesco. Kaikōura's world heritage journey began in 2004 when it was first included in a tentative global list of 304 sites. Te Korowai was established by Te Rūnanga o Kaikōura in 2005 and successfully lobbied both local and central government for marine protections. The Kaikōura Marine Strategy was published in 2012 and the Kaikōura (Te Tai o Marokura) Marine Management Act passed into law two years later. The legislation established the Kaikōura Marine Area, which comprises the 10,416 hectare Hikurangi marine reserve, a 4686ha whale sanctuary, five customary management areas, a fur seal sanctuary and restricted fishing areas. The Kaikōura district's international dark sky sanctuary status, obtained in September, also boosted to the district's case. LDR is local body journalism co-funded by RNZ and NZ On Air.
