Latest news with #SoundsAir
Otago Daily Times
8 hours ago
- Business
- Otago Daily Times
Regional flights: 'Everywhere you look, costs are increasing'
Regional aviation will become increasingly unsustainable and ticket prices will continue to rise until the government takes action on aviation system costs, airlines say. Sounds Air announced this week that it will be cutting its Blenheim to Christchurch and Christchurch to Wanaka routes due to spiralling costs. End of Sounds Air route raises concerns Sounds Air chief executive Andrew Crawfords has cited rising levies as a contributing factor to the cuts, even though there is still demand on those routes. "Where are we supposed to get that from? We've just got to pull that on the travelling public." More services will be lost if there is not a reset of the investment structure of our air industry, says the Board of Airline Representatives. Executive director Cath O'Brien told RNZ the news that Sounds was cutting operations was not surprising. "We have seen substantial increases in aviation costs in New Zealand over the last year or so and really there is nowhere else to go for airlines." O'Brien said the country needed to take a responsible look at all of the costs that were currently being levied on the aviation system. "Civil Aviation levies are up, Airways costs have risen by 21 percent potentially, Auckland Airport prices for regional airlines increased by 60 percent between 2023 and 2024 "So everywhere you look, costs are increasing for airlines." She said those costs were "absolutely" being passed on to customers. "So we need to have a look at airport charges, we need to have a look at the Civil Aviation levies, and say how much should these charges be allowed to increase altogether over time. "Because at the moment, all of these individual charges increase one by one all of the time, so every single one airport will increase its charges, the CAA will, Airways will, Customs will. So the effect of all that is that airlines will constantly increase prices over time." She said regional aviation was becoming commercially unsustainable and it was a real challenge for New Zealand as a whole. "The thing is with New Zealand is our aviation system is user pays, so all parts of the system are funded by airlines and their customers, so CAA levies, Customs, biosecurity, air traffic control, airport charges, all of that is funded by airlines. And in other countries that's not the case, but in this country that's where we are." In a statement, the Civil Aviation Authority said it was "acutely aware" of the financial pressures smaller operators are facing. It said the new safety levies came into effect on July 1 and were the first adjustment since 2017. "The domestic safety levy has gone from $1.60 per passenger, to $3.92 per passenger, excluding GST. "The CAA works to ensure the travelling public are safe when they fly, and like all government agencies, is also working to ensure that it delivers value for money to the travelling public and the sector to maximum extent practically possible."
RNZ News
11 hours ago
- Business
- RNZ News
The price of flying: 'Everywhere you look, costs are increasing'
Costs are increasing for airlines from a variety of sources, with the burden largely passed on to their passengers. Photo: Mongkol Chuewong Regional aviation will become increasingly unsustainable and ticket prices will continue to rise until the government takes action on aviation system costs, say airlines. Sounds Air announced this week that it will be cutting its Blenheim to Christchurch and Christchurch to Wanaka routes due to spiralling costs. Sounds Air chief executive Andrew Crawfords has cited rising levies as a contributing factor to the cuts, even though there is still demand on those routes. "Where are we supposed to get that from? We've just got to pull that on the travelling public." More services will be lost if there is not a reset of the investment structure of our air industry, says the Board of Airline Representatives. Executive director Cath O'Brien told RNZ the news that Sounds was cutting operations was not surprising. "We have seen substantial increases in aviation costs in New Zealand over the last year or so and really there is nowhere else to go for airlines." O'Brien said the country needed to take a responsible look at all of the costs that were currently being levied on the aviation system. "Civil Aviation levies are up, Airways costs have risen by 21 percent potentially, Auckland Airport prices for regional airlines increased by 60 percent between 2023 and 2024 "So everywhere you look, costs are increasing for airlines." She said those costs were "absolutely" being passed on to customers. "So we need to have a look at airport charges, we need to have a look at the Civil Aviation levies, and say how much should these charges be allowed to increase altogether over time. "Because at the moment, all of these individual charges increase one by one all of the time, so every single one airport will increase its charges, the CAA will, Airways will, Customs will. So the effect of all that is that airlines will constantly increase prices over time." She said regional aviation was becoming commercially unsustainable and it was a real challenge for New Zealand as a whole. "The thing is with New Zealand is our aviation system is user pays, so all parts of the system are funded by airlines and their customers, so CAA levies, Customs, biosecurity, air traffic control, airport charges, all of that is funded by airlines. And in other countries that's not the case, but in this country that's where we are." In a statement, the Civil Aviation Authority said it was "acutely aware" of the financial pressures smaller operators are facing. It said the new safety levies came into effect on 1 July and were the first adjustment since 2017. "The domestic safety levy has gone from $1.60 per passenger, to $3.92 per passenger, excluding GST. "The CAA works to ensure the travelling public are safe when they fly, and like all government agencies, is also working to ensure that it delivers value for money to the travelling public and the sector to maximum extent practically possible." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
12 hours ago
- Business
- Scoop
Marlborough Mayor ‘Disappointed' By Sounds Air Cuts
Marlborough mayor Nadine Taylor says the loss of some critical Sounds Air routes and reduction of its fleet is a sad day for the region. 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.
RNZ News
12 hours ago
- Business
- RNZ News
Airline industry reps call out spiralling costs
A group representing airlines says prices will continue to go up and more services will be lost if there is not a reset of the air industry's investment structure. Cath O'Brien from the Board of Airline Representatives is among industry representatives to call out spiralling costs in the wake of Sounds Air having to cut their routes from Blenheim to Christchurch and Christchurch to Wanaka. The rise in security levies means airlines will pay $10.91 per domestic passenger instead of $6.57 and $22.30 per international passenger instead of $13.12. Cath O'Brien from the Board of Airline Representatives spoke to Melissa Chan-Green. To embed this content on your own webpage, cut and paste the following: See terms of use.
Otago Daily Times
20 hours ago
- Business
- Otago Daily Times
Loss of flights another blow for Wānaka patients
Photo: Sounds Air Travel and Tourism Limited The loss of two popular regional flights is a blow to tourism and people needing treatment at Christchurch Hospital. Sounds Air will stop its flights from Blenheim to Christchurch and Christchurch to Wānaka from the end of September due to what has been described as 'out of control' costs. Are you affected by the loss of flights between Wānaka and Christchurch? Email reporters@ Sounds Air managing director Andrew Crawford said the airline was flying more passengers than ever but could not keep up with the costs that have remained high since the pandemic, engineer shortages and the weak New Zealand dollar. Sounds Air said it was going back to basics, canning the two routes, selling five smaller aircraft, and expanding its Cessna Caravan fleet for Cook Strait services. Ten staff will lose their jobs. That was after cancelling its services from Wellington to Taupō and Wellington to Westport last December and selling an aircraft. The Minister for the South Island and Associate Minister for Transport, James Meager, told RNZhe had spoken with Andrew Crawford recently to reassure him the issue was a high priority. But Crawford said they had reached out to the government numerous times to no avail, and passing the buck on to customers to cover costs was not an option. The airline's fares had gone up by more than 20 percent since Covid - they could go up another 20 percent and it would still not be enough to cover its costs, he said. Marlborough Mayor Nadine Taylor said the council had raised the issue with government, and was told market forces would take care of it. It was gutting for the region as the Blenheim-Christchurch route was a critical part of the region's economic recovery, she said. "I am frustrated that Sounds Air was unsuccessful in securing support from central government as regional connectivity is also important for economic growth, particularly tourism," she said. "There is often talk of the regions being our country's powerhouses - to be that we need infrastructure, services, and connectivity." Christchurch Hospital provided a lot of primary care for cancer patients, and Taylor had already been contacted by some of the patients who regularly used the service. "They're just sort of saying 'it's just such a devastating loss for them'. They're back to four or five hours on the road. They need family to transport them and take them rather than just dropping them at the airport," she said. Wānaka local and Queenstown Lakes Deputy Mayor Quentin Smith was disappointed the service was being cut. So instead of being able to take a short flight that was less than an hour, it meant an hours-long drive. "The alternative of either driving, which is about five-and-a-half hours each way or going to Queenstown, where you've got to drive over an hour each way plus you've got to be there a lot earlier for your flights than you do for Sounds Air," he said. His daughter used the service a few weeks ago, and he said it was well used by travellers for business, holidays and appointments. It also presented a problem for healthcare, especially for people coming from Wānaka or Blenheim who need to travel to Christchurch Hospital for treatment. "Healthcare, I think, is a big one because people will fly up to Christchurch and back for a specialist appointment ... we know that access to healthcare out of Wānaka is particularly challenging so that's an issue that concerns me," Smith said. Smith remembered when Air New Zealand used to fly the same route before the service was cut more than a decade ago. "There's been a bit of a history of the offering and loss of this type of service. We've just got to find something that's sustainable that matches the needs. It was disappointing that a service that is really well-patronised isn't successful and there's obviously other reasons for that," he said. Christchurch Airport chief executive Justin Watson was sad to see the flights go. "A number of the regional airlines have been facing big challenges so ultimately it wasn't a complete surprise. We were hoping that they could work through those challenges and that they could find a way to continue to operate. But unfortunately they haven't been able to do that," he said. Both services carried about 10,000 passengers a year. Watson would like to see a collective approach to ensure the wings of important regional services were not clipped. "There's a reality there that says every region can't be connected or it's going to cost so much that people just won't fly on it because it's too expensive," he said. "In some countries, there is support through the likes of government for ensuring connectivity remains." South Island Minister James Meager said the government had already taken action in a variety of ways - including providing investment in regional airport infrastructure, commencing the release of regional on-time flight performance data - and would soon release an aviation action plan. He understood the conditions were tough in the aviation industry and airlines were under pressure - and that the government was actively considering several options to address regional connectivity concerns and improve competition in the sector. Destination Marlborough general manager Tracey Green said Christchurch was a key visitor market for Marlborough. "Recent challenges with Air New Zealand and ferry services have compromised our connectivity and losing Christchurch as a direct link is a significant blow," she said. "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," Green said. With a renewed focus on the Cook Strait services, Andrew Crawford said he was confident about the future of the business. "We are not alone in this, Air New Zealand and other regional carriers in New Zealand, and world-wide, have been hit by the same cost increases, and the irony is that our passenger demand has never been stronger," he said. "However, aviation is a very price sensitive market and demand would dry up if we tried to pass all of the cost increases to our customers."
